You’re right, realised it too late after sending
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I am very sorry @bones I missed your post until much later the thread moved pretty quickly there for a while. I was not dismissing you it is a good question!
Here is a decent beginners guide that also goes over the liquidity questions @Traktion raised above
Uniswap is a decentralized exchange (DEX), it also means users maintain control of their funds at all times as opposed to a centralized exchange that requires traders to give up control of their private keys so that orders can be logged on an internal database rather than be executed on a blockchain, which is more time consuming and expensive. By retaining control of private keys, it eliminates the risk of losing assets if the exchange is ever hacked.
According to the latest figures, Uniswap is currently the fourth-largest decentralized finance (DeFi) platform and has over $3 billion worth of crypto assets locked away on its protocol.
Not anymore, now it is $53 billion. A worthy market to risk creating Maid (erc20) for.
How exactly Uniswap does this might be better for another thread, however.
Edit: What is important:
under “How Do You Add Liquidity To Uniswap?”
…
Tokens can be swapped right from the wallet itself, all while maintaining ownership over the private keys and tokens.
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Without me having to read up.
Can you just answer, is it possible to provide liquidity while still controlling the pvt keys to your coins?
Because that seems to be what you were saying,.
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Binding Resolution of the Directorate General for Taxation, V0999-18, 18-04-2018
https://petete.tributos.hacienda.gob.es/consultas/?num_consulta=V0999-18
Article 33(1) of the same Law states that: "Changes in the value of the taxpayer’s assets that become apparent as a result of any change in the composition of those assets are capital gains and losses, unless they are classified as income under this Law".
The exchange of a virtual currency for a different virtual currency constitutes an exchange, in accordance with the definition contained in Article 1.538 of the Civil Code, which states: “An exchange is a contract whereby each of the contracting parties undertakes to give one thing in order to receive another”. This exchange gives rise to an alteration in the composition of the assets, since an amount of one virtual currency is replaced by an amount of a different virtual currency, and on the occasion of this alteration there is a variation in the value of the assets in the form of the value of the virtual currency that is acquired in relation to the value at which the virtual currency that is given in exchange was obtained.
Consequently, in answer to the first of the questions posed, the exchange between different virtual currencies carried out by the taxpayer outside of an economic activity gives rise to the obtaining of income which is classified as capital gain or loss in accordance with the aforementioned article 33.1.
With regard to the second question, relating to the quantification of such income, the provisions of Articles 34.1.a), 35 and 37.1.h) of the LIRPF shall apply. Article 34.1.a) establishes in general terms that the amount of capital gains or losses shall be, in the event of transfer for valuable consideration or profit, the difference between the acquisition and transfer values of the assets,
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Thanks to you, @Dimitar and @krnelson - appreciated the details. That makes sense.
So, as long as there is pent up demand that isn’t being tapped, liquidity will follow.
The liquidity pools sound interesting too.
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Let me ask again. Tether is the most used cryptocurrency in the world and I am sure that many people are moving the OMNI Tether token to the ERC20 Tether token. Do these people pay taxes, does anyone know?
Privacy. Security. Freedom
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Wait what? This slipped me by. Voting NO.
I’m not going to go through and re-backup a new ERC20 key.
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Yea… Do you get taxed for transferring a GBP balance between UK banks? No.
Maid to safe network tokens is also a 1:1 swap, I don’t see any gain to be taxed.
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Did you actually read it? Perhaps I have spent too many hours doing tax returns but…
We are not changing composition and there are no capital gains or losses. It is a straight 1 for 1 transfer at par value meaning the asset is at exactly the same value the moment the transfer is done (since Maid erc20 does not exist before the swap).
Emphasis mine:
We are not exchanging. It is a transfer at par 1 to 1 value. In old world terminology your just transforming the account that holds it.
There no contracting parties. It is a transfer with one owner.
Emphasis mine:
At the instant the 1 to 1 swap is made, the value is exactly the same. It is not an exchange and your not altering the composition. It is Maid held in one account transferred to Maid held in a different account.
Think of it as withdrawing cash from the ATM, or asking your broker for the stock cert. Your transforming the protocol but there is no mismatch in value. Sure, afterwards the value of Maid (Omni) and Maid (erc20) may possibly diverge but that is irrelevant: Your not taxed right now because the “value” of the Maid you have on your paper wallet is different to the Maid you transferred to Bittrex which is different to the value of the Maid you sent to some scam exchange.
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Privacy. Security. Freedom
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I’m confused, which of these two is more accurate?
Privacy. Security. Freedom
No, @Dimitar can only apologise profusely and post clarifying statements so many times. @neo misread it and his post is incorrect. Very convincingly scary sounding however, I wonder how many votes it swayed?
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It was my fault, Rob in this case commented on what he thought was true. It was just obvious to me that I was talking about a non-wrapped token (full) and I misled a lot of people…
Privacy. Security. Freedom
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You are expected to pay tax on the gain you made from the asset you dispose of (trade). If I trade one form of tether for another form of tether, then I pay for the gain I made on the original token relative to dollars. As the original token is basically the same value as a dollar, there would be next to no gain (unless such a huge volume of tether that it adds up to something taxable)
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As I look at the price is constantly changing. Definitely not a stable $ 1:
Privacy. Security. Freedom
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My case: @Antifragile is incorrect as the value is transferred at 1 to 1 par value.
@Antifragile may be correct if he lives in a very weird exotic tax regime that taxes transfers, but I have lived in a lot of places never heard of this ever happening. Imagine paying capital gains tax when you request your stock cert or transferring money at par value from one account you own to an other… say from onshore USD in a US bank to Eurodollar USD in an overseas bank: something which happens everyday in the trillions. Ufff. I don’t believe that this place exists, let them show some proof instead of uninformed hand waving.
I think part of the problem is that some tax authorities feel threatened by crypto and have no interest in clarifying even basic rules like the difference between a transfer and an actual asset modifying exchange/“disposal” event.
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I understand the theory, but does anyone have information on whether these people really pay taxes?
Privacy. Security. Freedom
If you buy tether at .99 and sell at 1.01, then there is a potentially taxable gain made if you sell enough to reach the threshold.
@Dimitar doesn’t matter what you buy with the token you are selling - it is the gain you make with it. As tether itself is basically $1 then you aren’t getting a gain - you can buy whatever you want with it - same difference.
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I understood you perfectly but also understand why others may have read it differently. Biases we all sometimes see what we want to see.
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Wait a minute. You don’t sell anything. You switch from Omni tether to ERC20 tether. What did you sell?
Privacy. Security. Freedom
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