On this page, we'll introduce handling Wrapped Tokens in DeFi transactions.
As of December 2021, there were no clear guidelines from the National Tax Agency, so please confirm the calculation method with your local tax office. Additionally, there is a possibility that future guidelines may differ from the calculation method outlined here.
Contents;
１．What is Wrapped Token
Wrapped Tokens are tokens designed to track the value of other tokens. They are obtained by applying a "wrapping" process to the underlying token, but can also be acquired directly through exchanges and other platforms.
By using Wrapped Tokens, it's possible to transport the value of the underlying token to a different blockchain. For example, while you can't directly use Bitcoin on the Ethereum blockchain, creating a Wrapped Token for Bitcoin on Ethereum allows you to transfer the value of Bitcoin within the Ethereum ecosystem.
Generally, you can reclaim the original coins by "unwrapping" them at your own discretion.
２．Examples of Wrapped Tokens
Our supported Wrapped Tokens include WETH, WBNB, WMATIC, WFTM, WAVAX, and more. Please refer to our supported coin list for further details.
３．Handling Wrapped Tokens on DeFi platforms
In processing DeFi transactions, we recognize wrapped tokens and unwrapped tokens as the same coin. This is because there are numerous wrapped tokens in DeFi, and some wrapped tokens have the same name as their unwrapped counterparts, making it practically impossible to distinguish them all accurately.
*Regarding tokens that are not wrapped in a 1:1 ratio
Please upload the transaction history for custom files, adjusting the quantities as follows:
If the quantity has increased: Upload the purchase history at the market value of the original coin for the increased quantity.
If the quantity has decreased: Upload the sales history at the market value of the original coin for the decreased quantity.