This page provides an introduction to transactions involving liquid staking.
Please note that the National Tax Agency of Japan has not provided clear guidelines on how to calculate gains and losses for liquid staking. Therefore, we strongly recommend consulting your local tax office or a certified tax accountant for final confirmation.
Regarding transactions involving liquid staking, it is common to receive substitute tokens at the start of staking. When transactions occur, it is assumed that some gains or losses may arise from those transactions. As such, it is necessary to establish the acquisition cost of the substitute tokens. In cryptact's DeFi transaction list, we recognize the receipt of substitute tokens at the beginning of liquid staking as a swap or NFT trade involving the original asset and the substitute token. This approach allows the acquisition cost of the substitute tokens to be properly recorded.
As of December 2024, the National Tax Agency has not provided any guidance on how to calculate such transactions, including scenarios where no transactions using substitute tokens have occurred. If you choose not to recognize these transactions as swaps or NFT trades based on your judgment, please select the option to exclude them.
Below, we provide an example using transaction history from LIDO.
1. ETH→STETH (Enter Liquidity/Leave Liquidity)
When reviewing the history of stETH acquisition upon depositing ETH or the return of deposited ETH by returning stETH, these transactions are recognized as a swap or NFT trade between ETH and stETH. If you choose not to recognize them as a swap or NFT trade, please select the option to exclude them during synchronization.
2. Using stETH
The method for recording in a custom file will vary depending on the transactions made using STETH.
- If you staked stETH
If you receive rewards as a result of staking stETH, they will be recognized as staking rewards.
- If you traded or exchanged stETH
If you select the swap/NFT trade option in step 1, the acquisition history of stETH will be reflected. The average acquisition cost will be calculated based on the stETH acquisition history, and gains or losses will be recognized accordingly. If you choose to exclude the transaction, please note that the stETH acquisition history will still be required.
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