I purchased some ADAI and then sold my balance of them a few months ago. The balance had increased without any other transactions, because that’s how interest on Aave tokens works (rebasing I think ?).
Koinly doesn’t seem to understand this and reports “missing purchase history” because I sold more ADAI than I purchased originally.
Which exchange/wallet is this regarding?
Ethereum
How did you import data into this wallet?
Ethereum blockchain API
What have you tried to fix this so far?
I’ve added a manual deposit transaction tagged as “lending interest”, same date as when I swapped the ADAI back to DAI. I’m not sure if that’s the right approach.
Thanks.
I had done almost exactly what the article advises, except it says to use “Reward” and not “Lending Interest”. What is the difference ? It seems to me that “Lending interest” is a good description of what happens with aTokens.
Ok I pasted this question in the support chatbot and it makes more sense now :
We recommend using the “Reward” tag for rebasing tokens like ADAI instead of “Lending interest” in Koinly. Here’s why:
Rebasing tokens automatically increase in quantity as a form of reward distribution. This is similar to staking rewards, which we typically tag as “Reward” in our system.
While it might seem like lending interest, the HMRC (UK tax authority) has clarified that DeFi returns aren’t always considered interest for tax purposes. The classification depends on how the specific DeFi platform operates.
By using the “Reward” tag, you’re accurately reflecting the nature of these token increases and ensuring consistent treatment with other staking rewards in Koinly. This approach aligns with how we handle most PoS chains and centralized exchanges.