How to do your SushiSwap (SUSHI) taxes with Koinly

How to do your SushiSwap taxes with Koinly

Whatever your SushiSwap transactions, you'll need to figure out if you owe tax on them. Koinly can help. It's this simple:

1. Sign up to Koinly and choose your country and currency.
2. Connect the wallets you use to interact with SushiSwap to Koinly to import all your trades safely and securely
3. Koinly identifies the cost basis of all your coins and tokens (including ERC-20 tokens), as well as your taxable transactions.
4. Koinly calculates any capital gains, losses, and income from your taxable transactions.
5. Koinly generates your crypto tax report - ready to help you file with your tax office, or hand it over to your accountant.

How to import SushiSwap transactions to Koinly automatically

To import your SushiSwap transactions, you'll need to connect each wallet you use with SushiSwap to Koinly. This is easy to do, you just need your public address - and we have steps on how to get your public address for all the most popular wallets on our integration pages.

As SushiSwap supports a lot of different blockchains, this may mean getting multiple public addresses from each wallet to ensure you're importing your transactions from all blockchains. Here’s an example of how it generally works.

On wallet

1. Open or log in to your wallet
2. Select the blockchain you’d like to connect to - for example, Ethereum or Optimism
3. Copy your public address

On Koinly

1. Sign up or log in to your Koinly account and go to the wallets page
2. Search for and select the blockchain you’d like to connect to - for example, Ethereum or Optimism
3. Give your wallet a name - for example - MetaMask or MyEtherWallet
4. Paste your public address
5. Select import

How do I troubleshoot my SushiSwap integration to Koinly?

We’ve got plenty of help at hand if you’re having any trouble connecting to Koinly:

• Head over to our help center
• Hit up our discussion boards - we might have already answered your question
• Ask us on social media - we're on Reddit
• Contact us by email or live chat
• Got a feature request? Give us feedback on Canny

What is SushiSwap?

SushiSwap was launched just after the DeFi summer of 2020, in September by anonymous developers Chef Nomi and 0xMaki and quickly became one of the largest decentralized exchanges (dex) going. It actually began as a fork from UniSwap - hence the name sake. Like Uniswap, it’s built on the Ethereum blockchain.

Though the foundations of SushiSwap are built from Uniswap’s code - the developers introduced some key differences, including offering additional staking and farming opportunities, as well as a recent NFT platform Shoyu. 

One of the key things that helps SushiSwap stand out from other decentralized exchanges is the wide array of Ethereum compatible blockchains it supports, including: 

• Arbitrum
• Polygon
• Fantom
• Avalanche
• Harmony
• Binance Smart Chain
• Moonriver
• Celo
• Gnosis
• Telos
• Fuse
• OKExChain
• Palm
• Heco

How does SushiSwap work?

Like many other dexes, SushiSwap uses the automated market maker (AMM model) - throwing out order books and instead facilitating transactions through smart contracts and liquidity pools.

Liquidity pools are created by liquidity providers - who add capital and are rewarded the trading fees from the pool for doing so. When a provider adds liquidity, they need to add both tokens from a given pool. In return, they'll receive SushiSwap Liquidity Provider tokens (SLP tokens). So for example, if you added WBTC and ETH to a pool - you'd get WBTC-ETH SLP tokens. 

These liquidity pool tokens represent your proportional share of the overall pooled assets. Liquidity providers are rewarded with fees in the given pool. 

SushiSwap charges a 0.3% fee on trades, 0.25% of which goes back into the liquidity pool to be split among liquidity providers proportionally. Like many other dexes, this means the value of your liquidity pool token grows the longer your capital is in the pool.

When you want your original asset back, you can withdraw it by trading your SLP tokens back. You’ll receive back your original asset, alongside the fees you’ve accumulated in the time it’s been in the pool.

Most liquidity providers also stake their SLP tokens in SushiSwap farms to earn SUSHI - SushiSwaps native governance token. You can harvest your SUSHI tokens as often as you like, although it does come with some hefty gas fees at times.

As well as this, you can stake your SUSHI tokens in the Sushi Bar to earn XSUSHI. XSUSHI tokens collect 0.05% of trading fees from all pools on the exchange. Like liquidity pool tokens, you'll only realize gains when you trade your XSUSHI tokens back for SUSHI tokens.

This is the basics of SushiSwap's tokenomics - but there’s a few more investment opportunities which we’ll cover below.

How to use SushiSwap

Like other decentralized exchanges - to access SushiSwap, you just need a Web3 wallet. SushiSwap supports:

• MetaMask.
• WalletConnect.
• Keystone.
• Lattice.
• Coinbase Wallet.
• Formatic.
• Portis.
• Torus.
• Binance Chain Wallet.
• Clover.

As soon as you’ve connected your chosen wallet(s) to SushiSwap, you can trade, transfer liquidity, stake, farm, and more.

What can you do on SushiSwap?

We’ve touched on this a little above already, so we won’t repeat ourselves too much. In short, you can trade a huge variety of tokens on SushiSwap, as well as:

• Stake SLP tokens in the Farms (Onsen Menu) to earn SUSHI and other rewards.
• Stake SUSHI tokens to earn XSUSHI tokens (the SushiBar) - which collect 0.05% of all trading fees and 2.5% of NFT trading fees on the Shoyu platform.

It’s a lot already - but that’s by no means all you can do on SushiSwap. Let’s take a look at the other investment opportunities available. 

Yield farming with BentoBox

The BentoBox is an innovative investment opportunity on SushiSwap. In brief, the BentoBox is a vault that securely stores your deposited tokens and automatically generates yield from flash loans, and other DeFi protocols built on top of it. 

This essentially means you can stack multiple DeFi protocols all within one platform thanks to SushiSwap's AMM. So for example, if you're farming tokens in the Onsen, you can deposit the same tokens in the BentoBox.

Lending and yield farming with Kashi Money Market

Kashi is SushiSwap's lending protocol and it's built on the BentoBox - so the BentoBox holds your assets and Kashi utilizes those assets for lending and borrowing.

Unlike many DeFi lending protocols, Kashi works as an isolated lending market. This means each market on Kashi is one asset and one collateral token, isolating risk.

To lend, like with liquidity pools, you simply need to add a supply and borrow pair - which you can pick from your BentoBox. Each lending pair has its own APR which denotes what your return will be from the pool - this isn't fixed, so it will change depending on how much liquidity there is and how much is borrowed. Like with the liquidity pools, you'll get a KMP token to represent your capital - for example, kmWETHUSDT-LINK.

Like with SLP tokens, you can stake KMP tokens in farms (just search Kashi farms) to earn more SUSHI and maximize your yield.

Double your yields and vote with Meowshi

You can wrap xSUSHI tokens as MEOW tokens in the BentoBox to earn double yields as assets are utilized for other strategies and protocols. 

MEOW tokens also let you vote on special MEOW governor contracts.

Inari One-Click Yield Farming Strategies

The Inari tool lets you put your SUSHI tokens to work in one-click. You'll earn extra yields on your SUSHI as it's deposited to the BentoBox and invested into passive yield strategies or you can similarly deposit to Aave for collateral for lending and borrowing.

In return for your SUSHI, you'll get XSUSHI tokens - which increase in value.

Shoyu NFT Marketplace

Finally, Shoyu is SushiSwap's latest project - an NFT platform empowered by the SushiSwap community. You can mint, buy and sell ERC721 and ERC1155 NFTs. XSUSHI hodlers are rewarded with 2.5% of all trading fees from Shoyu.