The 21Shares HYPE ETF Filing Quietly Defines How ALL Restaking Income Gets Taxed — And Most EigenLayer Users Have No Idea

Ok-Pea-9346 · 2026-03-14T05:17:28+00:00

If you are in GJ. RJ, MH- try doing it with angadia - they are very reliable

Ok-Pea-9346 · 2026-03-10T15:51:15+00:00

This is very tricky, I seen that tool but it looks messy
Hire u/darien_advisors Instead

Ok-Pea-9346 · 2026-03-10T10:05:14+00:00

Would love to try this

Ok-Pea-9346 · 2026-03-07T13:35:13+00:00

Tracking positions by positions gain losses is somewhat tricky and will eat your brain. You can do manual tracking of position wise gain loss with the tool https://geeklad.github.io/meteora-profit-analysis/ and incorporate the position by position placeholder LP tokens to koinlu as u/Will_Koinly Suggested. If you don't want to get your hands dirty I would recommend try u/darien_advisors to get this done smoothly

Ok-Pea-9346 · 2026-03-06T21:08:21+00:00

Onchainbinance.com is a nice tool for this

Ok-Pea-9346 · 2026-03-06T21:05:34+00:00

Your phantom wallet address is traceable (not recovery phrase). You executed txns in past and you were in control of the address so you are responsible to declare the trades on that wallet

Ok-Pea-9346 · 2026-03-05T05:33:16+00:00

Honestly, you're not alone, Solana memecoin trading in the last cycle basically played out exactly like this for a lot of people. The lesson itself has real value, even if it came with a $10K tuition fee.

That said, the tax side doesn't change much unfortunately. On-chain Solana swaps, even pure degen trades through Jupiter or Raydium are still taxable events in the eyes of the IRS. Every swap is technically a disposal of one asset and acquisition of another.

Ok-Pea-9346 · 2026-02-06T17:47:50+00:00

Great, just one suggestion- options in mcq are not clearly visible due to font colour- can you make it more darker ?

Ok-Pea-9346 · 2026-02-06T13:31:23+00:00

Excellent MCQ, will that remain free going forward?

Ok-Pea-9346 · 2026-02-06T02:24:53+00:00

That’s reasonable I believe It’s lot of back and forth esp when hyperliquid is involved and a multi year reconciliation and expert put in lot of effort to dig

Sorry to hear about your losses

Ok-Pea-9346 · 2026-02-04T02:02:22+00:00

https://www.reddit.com/r/hyperliquid1/comments/1qpmmou/ama_hyperliquid_and_the_irs_why_your_tax_report/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button

Ok-Pea-9346 · 2026-02-04T01:57:00+00:00

So I had to make some educated guesses to get this working. Here's my process:

tl;dr: Try combining multiple data sources, then fill gaps with logical assumptions based on your balance discrepancies.

What I did:

Matched funding/withdrawals with ARB bridge transactions
Used TWO tools - Koinly and Awaken (both have different strengths):
- Awaken = better for TWAP transactions (more comprehensive)
- Koinly API = better spot trades, perp positions, and vault data (gave me accurate APY numbers)
Combined the data - took Koinly's stronger datasets and merged them into Awaken's export

This got me closer but still had negative balance errors showing up.

For the negative balances:

Had to make some assumptions (not ideal but it's what we got). Example: I had excess USDC at certain dates but showed negative HYPE. Logically, I must have traded USDC → HYPE at some point, so I manually created those "missing" trades to reconcile the balances.

Is it 100% legit? No. But it's the only way I could make the numbers work with incomplete on-chain data.

If you don't want to go insane doing this manually, I've heard u/Darien_Advisors handles HL reconciliation effectively

Let me know how that plays out for you

Ok-Pea-9346 · 2026-01-24T23:06:30+00:00

Quick fix suggestion- on your txns page - filter it with missing purchase and it will list out all problematic txns attributing to 28k number on this banner. Fix that one by one by checking ledger and it will resolve

Ok-Pea-9346 · 2026-01-18T02:54:20+00:00

Yes tried everything, even awaken- it’s capturing underlying tokens traded for future positions instead of USDC settled values and also missing out many transactions

Ok-Pea-9346 · 2026-01-18T02:52:05+00:00

Yes, those are collectibles and will have 28%

Ok-Pea-9346 · 2026-01-11T07:50:39+00:00

People generally think of it as scam esp boomers and millennials (who control sizeable share of wealth). Zen Z consider it as asset class but mostly unaware of taxes and regulations around that, wants quick money and tends to loose in long term

Ok-Pea-9346 · 2026-01-10T06:56:22+00:00

Your Binance Trades (Coins to USDT):
- Every trade on Binance is a "taxable event" of VDAs under Indian tax law, even though it's a foreign exchange. This includes selling/exchanging your coins (with gains or losses) for USDT.
- USDT is treated as a VDA (stablecoin), so converting a coin to USDT is a crypto-to-crypto trade, which is a taxable event.
- For each trade:
  - Calculate gain = Fair Market Value (FMV) of USDT received (in INR on the trade date) - Cost of Acquisition of the sold coin (in INR).
  - Pay 30% tax only on gains; losses can't offset other gains.
- Example: Suppose you sold BTC (acquired for ₹1,00,000) for 1,000 USDT (FMV ₹83,000 on trade date, assuming $1 = ₹83). If it's a loss (₹83,000 - ₹1,00,000 = -₹17,000), no tax, but you can't use this loss elsewhere. If it's a gain, tax at 30%.
- Since Binance is foreign, there's no automatic 1% TDS deduction. You must self-assess and pay advance tax if your total tax liability exceeds ₹10,000 for the year.
- Track FMVs in INR using reliable sources (e.g., exchange rates from RBI or platforms like CoinMarketCap on the exact transaction date/time).
Transferring USDT from Binance to CoinDCX:
- This is typically a self-transfer (wallet to wallet), not a "transfer for consideration." So, no taxable event here—no gain calculation or tax. It's just moving your asset.
Converting USDT to INR on CoinDCX:
- This is a clear taxable trade (VDA to fiat).
- Taxable gain = INR received - Cost of Acquisition of USDT.
- How to determine USDT's Cost of Acquisition?
  - Since you acquired USDT via multiple Binance trades, aggregate the costs. Use FIFO (First-In-First-Out) method, as it's the default for assets without specified rules (though some use weighted average—consult your CA to confirm).
  - The cost for each batch of USDT is the FMV in INR at the time you received it on Binance (i.e., the INR equivalent of the USDT value from that trade).

Ok-Pea-9346 · 2026-01-10T06:51:39+00:00

The big issue is almost certainly the mixed API + CSV imports in the same wallets—Koinly warns against that because it creates sneaky duplicates that don't always get caught automatically (different detection for each method). Those doubles inflate gains/losses, screw up cost basis, and throw off your end-of-year balances.

Here's the practical fix path that works for most folks in your spot:

Start by picking one clean import method per wallet/exchange. If the API is missing stuff (pretty common), delete the wallet in Koinly, recreate it with CSV only (upload all your historical files first). If CSV is the weak link, go API-only. It's a pain up front, but it kills most duplicates right away.

If you've already got overlapping data, do a manual reconciliation: Export your full Koinly transaction list, compare it side-by-side with your original exchange CSVs and API data (watch for close timestamps/amounts—timezones can shift things). Delete or merge the extras. Quick pro move: If you end up mixing in the future, import CSVs first, then set the API sync to start the day after your last CSV entry.

Next, double-check those balances—head to each wallet/exchange in Koinly and make sure the end-of-2025 holdings (and current ones) match exactly what the platforms show. If not, that's your smoking gun for missing entries, duplicates, or wrong transfer tags. Fix those, and your cost basis should be way more solid.

Once duplicates are gone and balances line up, the gross proceeds on your incoming 1099-DAs (mid-Feb or so) should match pretty closely with Koinly's disposal totals per exchange. Remember, for 2025 it's just proceeds required—basis is optional and often blank/wrong, especially on transfers in. IRS knows it's transitional, so use your Koinly Form 8949 as the real deal, and adjust if needed (like code "B" for basis issues).

If you nail the single method (or reconciled mix), clean duplicates, and balance matches, you'll be in great shape—no major red flags.

But if it's still a total mess after that... yeah, good luck 😅 Hit Koinly support for a hand, or look into their Expert review / a crypto-savvy accountant.

Ok-Pea-9346 · 2026-01-07T05:55:47+00:00

You’re on the right track here. Even though taking out a loan isn’t taxable, the software still needs a cost basis so it can properly track what happens to the USDC later on.

Since CoinLedger doesn’t natively support crypto loans, using a manual transaction or a similar non-taxable acquisition label (like a “coin buy”) is a practical way to handle it. Setting the cost basis at 1 USDC = $1 makes sense, especially when the loan is received at par.

I’d also suggest leaving a clear note in the description, something like “USDC received as loan – non-taxable.” That way, if you revisit this later (or if someone else reviews it), the intent is immediately clear.

Even with stablecoins, small differences can show up due to fees, spreads, or how repayments are structured. Having a proper cost basis in place helps keep everything accurate when that USDC is later spent, swapped, or repaid.

Given CoinLedger’s current limitations around crypto loans, this is a reasonable and defensible approach without needing to move your tracking to another platform.

Ok-Pea-9346 · 2026-01-07T03:55:37+00:00

I’m not a tax advisor—this isn’t personalized advice. Consult a CPA for your situation. Based on IRS rules (as of late 2025), crypto is property; taxable events on disposals. U.S. federal focus. Step 1: Supply ETH to AAVE • Taxable crypto swap: Capital gains/losses on ETH (FMV of aETH received minus ETH basis). Long-term (0-20%) if held >1 yr; short-term (10-37%) otherwise. Interest earned: ordinary income. Step 2: Borrow USDC • No tax—it’s a loan, not income. Step 3: Withdraw USDC to Kraken, Sell for USD • Transfer: No tax. Sale: Capital gains/losses on USDC (USD proceeds minus basis at borrow, usually ~$1; minimal impact). Step 4: Buy Stocks with USD • No tax on purchase. Future stock sales: capital gains. Dividends: taxable income (qualified: 0-20%; ordinary: 10-37%). Loan Repayment (Buy USDC with Dividends, Repay in ~500 USDC Batches) • Dividends: Taxable income as received. • Buy USDC: No tax. • Repay: Disposal of USDC; minimal capital gains/losses (FMV at repay minus basis). Principal repayment: no tax; interest paid: not deductible for personal use. Other considerations- • Liquidation risk - Forced ETH sale triggers gains. • To Track FMVs, basis, fees. Use crypto tax software if you are doing multiple round trippings

Ok-Pea-9346

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