Improve Liquidity Pool Reward and Cost Basis Handling
acknowledged
Ryan
What is being requested?
Track liquidity pool rewards as separate income events at the time they are earned, with their own cost basis based on fair market value at the time of receipt.
Why is this needed?
Apply proportional cost basis allocation on partial LP token redemptions, so that only the corresponding percentage of the original deposit basis carries forward to the assets received, not the full original basis. This issue is particularly problematic for stablecoins like USDC.
What can users do now?
Users can manually edit the cost basis of certain transaction types. Please see our help center article: See editable fields by transaction category
Keywords: liquidity pools, cost basis, lp tokens, rewards tracking, transaction editing
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