DeFi Yield Farming Cheatsheet =============================== Quick Reference for Farmers TAX EVENTS (Remember These!) ✅ Deposit to LP: Not taxable (token movement) ⚠️ Claim rewards: Taxable income at FMV ⚠️ Withdraw from LP: Capital gain/loss on difference ✅ Stake LP tokens: Not taxable ✅ Unstake: Not taxable ⚠️ Sell rewards: Capital gain/loss WHAT TO TRACK PER POSITION 1. Date & time of deposit 2. Protocol name & pool 3. Assets deposited + USD value 4. LP tokens received + value 5. Every reward claim (token, amount, date, USD value) 6. Assets received on withdrawal 7. Transaction hashes for everything COMMON POOLS ON BASE Pool | Protocol | Typical APR ETH/USDC | Aerodrome | 8-25% OP/ETH | Velodrome | 10-30% AERO/USDC | Aerodrome | 15-40% USDbC/USDC | Aerodrome | 5-15% PRO TIPS - Track rewards at $0 cost basis (they're income) - Use a spreadsheet — don't rely on protocol dashboards alone - Take screenshots of your positions weekly - Save all transaction hashes --- Need a full tracker? → Crypto Portfolio Tracker ($5) https://hasan0001.github.io/products/crypto-portfolio-tracker.html