Capital gains tax on borrowed ETH?

I borrowed ETH against some other tokens I got. I use this ETH as collateral in another protocol. In the meantime ETH price has gone up. I didn’t do any trading whatsoever with the ETH. Yet, when I pay back the ETH will I have to pay taxes on these USD gains? Since everything is denominated in USD and not ETH? Or is there a way around this?

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