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Staker/Lender/Collateral Provider

The tax position of the person locking away their tokens in a yield generating activity depends on whether the reward/return is income or capital and it also depends on whether or not beneficial ownership of the tokens is transferred to another party.
Our analysis of the tax position for the staker/lender is split into the following scenarios:
Where Income Rewards are received for locking tokens up
Where Capital Rewards are received for locking tokens up