DeFi and taxes

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DeFi and taxes

I'm interested in dabbling with layer 2s to farm some DeFi tokens this summer on arbitrum and optimistic when they release to consumers. However a few questions before I begin:

What happens with your ETH and taxes in regards to liquidity pools?

To my knowledge people are trading your ETH and you are receiving fees but technically you are not actually selling it, unless I'm wrong, you never receive an order history.

So what does it mean for taxes? I am interested in Uniswap, AAVE, YFI, COMP etc.

submitted by /u/Aquinasinsight
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