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Tax

How are DeFi yields taxed?

Quick Answer

DeFi yields are generally ordinary income at FMV when received — interest from Aave/Compound, LP fees, farming rewards. Adding liquidity to or withdrawing from a Uniswap pool is also a taxable disposition of the deposited tokens.

DeFi taxable events for lending, LP, and yield farming.
Warren Team
Updated April 26, 2026
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Important Disclaimer:

The information provided is for educational purposes only and should not be considered as personalized financial advice. Warren is a registered investment advisor. Past performance does not guarantee future results. Please consult with a qualified financial advisor before making investment decisions.

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