DeFi (decentralised finance): what it means for crypto tax
DeFi is on-chain financial services, lending, borrowing, swapping, yield, run by smart contracts rather than intermediaries. DeFi generates many small taxable events, which is why automated tracking across wallets matters for an accurate report.
General information, not tax advice. Crypto tax rules differ by country and change over time, verify against your country's guidance or a qualified advisor.
An example
A single yield strategy can fire a swap (disposal), a reward (income) and a withdrawal (possible disposal), each needing its own value and date.
Why it matters for your tax
DeFi is where crypto tax gets genuinely hard, because one strategy stacks income and disposal events across many transactions, and guidance is still settling.
CryptaTax handles this automatically across your wallets and exchanges, so the concept is applied consistently without you tracking it by hand. Try the crypto tax calculator →
Related terms
See the full crypto tax glossary for every term, or the crypto tax guides for how they fit together.
FAQ
DeFi is on-chain financial services, lending, borrowing, swapping, yield, run by smart contracts rather than intermediaries. DeFi generates many small taxable events, which is why automated tracking across wallets matters for an accurate report.
See the crypto tax glossary for related terms, or the crypto tax guides for worked examples. Rules differ by country, so check your country's rules.