You might find yourself in a situation where you want to provide your tokens to a liquidity pool and you receive a token for your share of the pool, one that we can’t identify in ACCOINTING. You might naturally want to be able to track and report this in our platform. There is a way of doing that so let’s have a look at one simple example.
Liquidity Providing Transactions
Technically the Liquidity Pool or “LP” token has a price and you made a trade for it with 2 tokens for the LP token. As an example, let’s assume that you will be providing ETH and USDC into a liquidity pool.
1) First, you would have to setup a manual wallet and call it LP USDCETH.
2) Add the respective deposit for the USDC and ETH that you used for the pool.
You can head in your newly created wallet and add an internal transaction. In this example we will be transferring 1ETH and 100 USDC into the LP USDCETH wallet.
Do the same for USDC.
3) Classify these transactions as internal from your “real” wallet
4) When you then get out of the pool, you receive a combination of tokens back
For example you put in 1 ETH and 100 USDC you may get back 1.1 eth and 90 USDC , so in this case you would make an additional deposit of 0.1ETH with classification Liquidity pool, and you would create a withdraw of 10 USDC with the classification payment. ( in your LP USDCETH wallet )
After these steps it should look something like this in your LP DSLAETH wallet:
5) Now you can send both of these transactions back to your real wallet and classify it as internal.
Make sure to do the same for the remaining 90 USDC and transfer the remaining funds to your real wallet and classify as Internal.
By the time you are done you should have a similar sight in your real wallet.