Taxation and DeFi Yield/Liquidity Tokens

Since crypto interest and dividends are taxed differently than trading profits I’m wondering how others handle grey area gains when holding liquidity pair / staked placeholder coins.

The programs I’ve been using would treat the creation / dissolution of a liquidity pair token as a trade with the price difference at close being a capital gain or loss. Since we are actually trading tokens in this transaction would that be the legit way to report it?

I understand that any returns that you can claim along the way are obviously ordinary income just like a dividend, but I’m referring to the value change in the liquidity pair token itself.

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