The taxation of liquidity pool income is a bit of a pickle. When you're income is negligible it is probably best to forget about the taxes. No tax administration in the world has time to go after peanuts.
But if you earn a non-negligible amount, then you are going to have to work out your taxes. There is no guidance on the taxation of liquidity pool income. It's clearly capital gains income but what are the taxable events?
Would it be reasonable to consider only "compounding" a taxable event if you stake CUB in a den? If you kept your funds in the den for, say, for six months and "compounded" once a couple of weeks, you'd have a reasonable number of events.
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