If you're using Curve to trade or earn - your tax office will want to know about it. We're guiding you through how your Curve transactions are taxed.
Do you pay taxes on Curve Finance?
Yes. If you have gains or income from your Curve Finance investment activities, you'll need to report this to your tax office and pay any tax due.
Crypto tax varies depending on where you live in the world (so make sure to read our crypto tax guides), but generally speaking, you'll pay Capital Gains Tax on any gain from disposing of crypto or Income Tax when you're seen to be earning an additional income from crypto.
This can get a little confusing, so let's take a look at the different transactions you can make on Curve and the likely tax implications.
Do you pay tax on trades on Curve Finance?
Yes. Crypto to crypto trades are seen as a disposal of a capital asset in most countries, and therefore any gain you make from trading one cryptocurrency for another on Curve Finance would be subject to Capital Gains Tax.
Do you pay tax when you provide liquidity on Curve Finance?
Most tax offices haven't yet got around to releasing guidance on DeFi transactions - but that doesn't mean your transactions aren't taxable. Instead, you'll need to look at the existing guidance and figure out how it applies to your DeFi transactions (or better yet, get an experienced crypto accountant to do it).
All this said, when you add liquidity to a pool on Curve, you'll receive liquidity pool tokens representing your capital in that pool. Similarly, when you remove capital, you'll trade those LP tokens back to do so. This could be seen as a crypto to crypto trade and therefore any gain from these transactions is potentially subject to Capital Gains Tax.
This perspective makes sense, as your liquidity pool rewards (that is the fees you're earning related to the transactions in the pool) are also paid out in the form of your liquidity pool tokens, as they accrue value as you earn fees. So it's only when you remove your capital from the pool that you'll realize a gain.
However, this isn't always the case as you can also earn CRV tokens if you provide liquidity to specific pools, and the tax implications of this may be different.
Do you pay tax when you earn CRV tokens?
Earning new tokens - however you're doing it - is generally viewed by tax offices as ordinary income. While there's unsurprisingly no specific guidance on earning CRV tokens on Curve Finance, it's likely if you earn new tokens as a result of DeFi investment activities, this may be ordinary income. As such, it would be subject to Income Tax based on the fair market value of your tokens in your fiat currency at the point you received them.
How to prepare Curve Finance taxes
Now, your local tax office wants to know about your Curve.fi transaction history, including your profit and loss, income and expenses. So to get started with your Curve.fi taxes, you'll need your complete Curve.fi transaction history. But don't stress. This is easy to get hold of in your Curve.fi account or by using a crypto tax app. Today, we're looking at both.
How to download & export Curve Finance trading & transaction history
You can download and export your Curve.fi trading and transaction history within your Curve account. There are two ways to do this.
- Use the Curve.fi tax report API with crypto tax software. If you use the Curve.fi tax reporting API with a crypto tax apo, all your transaction history will be automatically imported to your chosen app.
- Export Curve.fi transaction history in a CSV file. Then you can either do your Curve.fi taxes manually (not recommended), or upload this to a software that will organise it for you.
Does Curve Finance provide a tax report?
No, Curve.fi does not provide a tax report.
However, you have the option to integrate your Curve.fi transaction history with a crypto tax software. This will automatically generate a Curve.fi tax report, saving you the hours and hours required to go through all the transactions yourself.
The simplest way to do this is to integrate it with a crypto tax calculator. This fetches all your transaction history for you, meaning you don't need to download multiple CSV files from your other exchanges or wallets.
Does Curve Finance supply a financial statement?
Yes. Your Curve.fi transaction history is your Curve.fi financial statement. Your Curve.fi account statement includes your complete trading history on Curve.fi, which you can use to create a tax statement to submit to your local tax office.
Remember this — you'll need your complete Curve.fi trading history for however long you've had the account in order to calculate your short and long-term gains. Otherwise, you might end up paying more tax than you need to.
To avoid this, your Curve.fi financial statement to a crypto tax app to fetch a Curve.fi tax statement within minutes. Better than fiddling with a spreadsheet for hours, right?
How to generate a Curve Finance tax form
As mentioned quite a few times now, you have two options when it comes to generating a Curve.fi tax. The first is via a crypto tax app, the second is to do it manually. Let's look at both.
If you're DIY-ing your crypto taxes, your tax office wants to know about every single taxable event. This means you’ll need to go back through every transaction you made in this tax year, and find everything that gains and losses from selling, swapping, spending or gifting crypto. This is a pain in the you-know-what.
In addition, your tax office also wants to know about any income you've made from crypto. This may include things like mining, staking or airdrops.
Once you have all this information, include it in your annual tax return. The amount of info you'll need to include varies depending on where you’re based (US, UK, Australia, etc). This is because some tax offices only want to know about your net capital gains or losses and any additional income, while others (like the US) want a more detailed breakdown of each taxable transaction.
If you'd like to avoid the brain-numbib task of deciphering through every single transaction, you’re better off using crypto tax software. Why? This special software generates your Curve.fi tax report for you.
To do this, take the Curve tax report API and upload your Curve.fi transaction history CSV into a crypto tax app. Press a few shiny buttons on the screen, and wala— you're done.
Koinly can even generate pre-filled tax reports based on your location and your local tax authority - for example, a pre-filled IRS Form 8949 and Schedule D. This saves you a lot of stress.
Curve Finance CSV exports
Need to get your Curve.fi CSV export in time for the tax deadline? No worries.
Log into Curve.fi and select your profile in the top right corner. You'll see all the different types of transactions you've made in the drop down menu and you can download a CSV file to cover all the different kinds of transactions you've made on Curve.fi, for example your order history CSV file, trade history CSV file, PnL CSV file and rewards CSV file.
Remember, you need to ensure your CSV file covers the entire period of time you've been using Curve.fi - not just the specific financial year you're reporting on. This is so you can calculate your short-term and long-term gains accurately.
Curve Finance tax API
If you're using crypto tax software instead, the easier option is just to use the Curve.fi tax API. It takes less time, there's no fiddling around with multiple CSV files and it's easy to do.
Just log in to Curve.fi and select profile from the top right corner, then settings from the drop down menu. Then select API, and create a read-only API key. Copy the API key and API secret and paste these into your chosen crypto tax app. Done.
Does Curve Finance provide an end of year statement?
No, Curve.fi does not provide an EOFY statement.
However, your Curve.fi CSV files can work as your Curve.fi end of year statement. Follow the instructions above to create this.
Does Curve Finance report to the IRS and other tax authorities?
Curve.fi stopped operating in the US due to the strict regulations around crypto prediction contracts. This is why Curve.fi US was set up.
We can assume from this that Curve.fi have been under considerable scrutiny by both the IRS and other financial authorities (such as HMRC and ATO). Although Curve.fi have not said officially that they report to the IRS, it is likely that they do. Just like other large crypto exchanges, they have to share customer data to ensure tax compliance.
The best way to remain tax compliant with the IRS is to make sure your crypto tax report is accurate.
As mentioned throughout this piece, Koinly is a crypto tax tool that calculates your crypto taxes for you, meaning you don’t have to go through the hassle of doing it yourself.
Not only does the software integrate with Curve’s transaction history, but it calculates your taxes in a format that makes sense for your country’s tax office. Essentially, Koinly does all the boring tasks that would cost your hours and hours sitting at a computer.
As a quick breakdown, here’s a short summary of what Koinly does:
- Imports all your trades including purchases, sales, swaps, and rewards.
- Converts your transactions into your country’s currency at fair market value (this in itself is a massive time saver).
- Calculates your gains, losses, and income
- Allows you to submit a clean and accurate report to your tax office.
The information on this website is for general information only. It should not be taken as constituting professional advice from Koinly. Koinly is not a financial adviser or registered tax agent. You should consider seeking independent legal, financial, taxation, or other advice to check how the website information relates to your unique circumstances. Koinly is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this website.