Participating in decentralized finance (DeFi) protocols can make tax accounting even more complex. For example, if an institution is providing liquidity on a decentralized exchange (DEX), it also needs current and historical liquidity provisioning positions (in other words an exchange’s assets and liabilities), current and historical percentage of the total pool owned, fees earned, claimed and unclaimed, as well as the percentage fee provided by the pool.
Source: https://www.coindesk.com/layer2/2022/11/18/crypto-accounting-tax-requirement-challenges/?utm_medium=referral&utm_source=rss&utm_campaign=headlines