David

April

Yield

Coin

<ul class="news-points">
 <li><strong>Ripple CTO David Schwartz emphasizes understanding tax implications in AMM transactions.</strong></li>
 <li><strong>User shares tweet showing an example of upto 24% AMM high yields upon XRP withdrawal.</strong></li>
 <li><strong>David Schwartz takes lead in the twitter conversation and sheds light on AMM’s tax challenges.</strong></li>
</ul>
<p>David Schwartz, co-founder of Ripple, highlights the importance of understanding the tax implications associated with AMM transactions. The CTO went on to explain that Depositing and withdrawing assets from these pools can trigger taxable events, as users effectively convert their cryptocurrency into liquidity provider (LP) tokens upon deposit and back into cryptocurrency upon withdrawal.</p>
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">When you get LP tokens, you establish the value of the assets you gave up in exchange for them. That might result in a capital gain or less, which would be taxable, and sets the basis for the LP tokens.<br><br>When you the redeem or otherwise dispose of the LP tokens, you establish the…</p>— David "JoelKatz" Schwartz (@JoelKatz) <a href="https://twitter.com/JoelKatz/status/1778551495283355708?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">April 11, 2024</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
 </div>
</figure>
<p>The concept of “basis” is of great importance in navigating the tax landscape of AMM transactions. The value of assets deposited into the AMM pool at the time of entry serves…</p>
<p>The post <a href="https://coinedition.com/david-schwartzs-shares-tax-insights-on-amm-pools-yield-returns/" rel="noopener noreferrer nofollow">David Schwartz’s Shares Tax Insights on AMM Pools Yield Returns</a> appeared first on <a href="https://coinedition.com" rel="noopener noreferrer nofollow">Coin Edition</a>.</p>

David Schwartz’s Shares Tax Insights on AMM Pools Yield Returns

Coin Edition

Weitere Artikel, die am 12. Apr. 2024 veröffentlicht wurden

Cardano and Shiba Inu Navigate Price Pressure and Sell-Off Risks

Riding the Bull Market: L2 Cryptos with Potential for 30X Growth

Adam Back Calls Bitcoin ‘Super Cheap’ at Current Levels

Sam Bankman-Fried Appeals 25-Year Sentence

Solana Project Jupiter Won’t Be Able To Keep Up With Octoblock’s cFyF

Ripple Labs Warns of Increased AI-Powered Scam Risks

Abonniere unseren kostenlosen Newsletter und erhalte tägliche Krypto-Updates!