Koinly currently supports Liquidity transactions carried out on the Ethereum, Binance Smart Chain, Polygon, Avalanche, Fantom, Cronos, Arbitrum, and a few other EVM blockchains. We are working on adding support for other blockchains such as Solana and Osmosis.

Liquidity transactions are imported and tagged as Liquidity in/out automatically.

We currently support a number of liquidity protocols such as:

This list is ever-increasing. If your transactions are not being recognized as liquidity automatically then send us a feature request via our Feedback Portal!

☝ Uniswap V3 liquidity is now supported on Ethereum, Matic, Optimism, and Arbitrum.
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We do not currently support PancakeswapV3 - you will need to use our manual method described below for those transactions. Make sure to upvote support for PancakeswapV3 on our Feedback Portal!

There's a lot of debate around this, by default we treat these as taxable since you are exchanging your tokens for some LP tokens which can be traded or staked to earn more coins.

However, if you feel that such liquidity transactions should not be taxed then you can toggle OFF "Realize gains on liquidity transactions" on the Settings page.
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This can happen if:

🔵 Example: if you provide ETH and FOMO as liquidity on Uniswap V2 but Koinly didn't automatically merge this into a "Liquidity In" transaction - there is a Market prices for XYZ are missing warning on one of the withdrawals:

🟢 Solution: Check if both of the provided assets have a market price. Once you set the market price you will be able to merge the 3 transactions

☝ You do not need to set the worth of the received LP token - market value needs to be set only for the assets you provided to the liquidity pool

🔵 Example: The assets you provided to the liquidity pool both have the market price, but Koinly still didn't merge them into a Liquidity In transaction:

🟢 Solution: If the LP token you're receiving is not recognized by Koinly, it will have a grey icon instead of an orange one. In such cases, Koinly will not be able to merge this into a liquidity transaction - please open a support ticket regarding this, but you will most likely need to use the manual method for this protocol.

Compare the icon of the received LP token in this example (grey, unsupported) and in the previous one (orange, supported):
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This is a common issue that can happen if you have farmed (staked) your LP tokens. Koinly will import these farming/staking transactions but they will be shown as regular deposits/withdrawals since this is how the block explorers report them.

To fix this, you can tag these deposits and withdrawals as Add to Pool and Remove from Pool so that Koinly understands that these LP tokens are simply being transferred to a farm or staking pool. You can learn more about this in our article on Staking.

Koinly will automatically apply these labels to most LP farming transactions, but you will need to add the label manually if it gets missed by Koinly.

🟢 Solution: An easy way to find all transactions that need to be tagged for each LP token is to:

☝ You need to repeat this process for every LP token you had.

If you zapped into the pool, most of the standard transactions happened on the smart contract, without anything related to your wallet. Often you will only have a withdrawal of one asset (i.e. 1 ETH) from your wallet in Koinly, while the rest:

Is missing, because it didn't happen on your wallet.

In such situations, you need to account for the liquidity manually (see below). Usually, you can ignore the staking transactions whatsoever, as they are not taxable - so you only need to add Liquidity In/Out.

🔵 Example: You provided 4300 USDC and 1 ETH to a liquidity pool, but the imported LP token is not recognized by Koinly (it has a grey icon instead of an orange one).

🟢 Solution: In Koinly, you can use liquidity placeholder tokens whenever we do not support a specific coin: (LP1, LP2, LP3, etc.)

☝ Use a different LPx for every liquidity pool you participated in. For example LP1 whenever you entered ETH-BNB pool, LP3 for BTC-USDC pool, etc.

To account for this liquidity transaction manually in Koinly, you need to:

Update 2023: Uniswap V3 is now supported automatically on all major chains. The below text only applies to other protocols that function similarly, such as PancakeswapV3 and TraderJoe.

For protocols like UniV3 that don't provide an LP token (UniV3 only gives you 1 NFT when opening the position) step 1 from the instructions above gets tricky. What we recommend is:

☝ If you were providing assets to the same liquidity pool multiple times or exiting it partially, you need to calculate the number of LPx tokens added/removed proportionally.