Hello,

I’m writing to provide an update, additional context, and request support regarding how Aave DeFi transactions are currently handled in Koinly.

Setup

-Registered for Koinly

-Added my DeFi wallet via autosync using my wallet address

Issue Identified

My Aave transactions are importing, but they appear only as generic “withdraw” and “supply” transactions.

According to Koinly’s documentation and standard DeFi tax treatment:

-Sending assets as collateral should be tagged as “Add to Pool” to prevent an unintended taxable disposal.

-Receiving collateral back should be tagged as “Remove from Pool” to preserve the original cost basis.

-Liquidations should be treated as normal trades and remain fully taxable.

At present, I’m unable to apply the Add to Pool / Remove from Pool tags. The only available options appear to be “Swap” or “Remove Tag.” As a result, normal lending and borrowing collateral flows are being interpreted as taxable events.

Important Update / Context

Previously, this issue had been resolved in my account and collateral transactions were correctly treated as non-taxable.

In an attempt to refresh the data, I removed my wallets and re-added them to reload transactions. This turned out to be a mistake. Since re-adding the wallets, the issue has resurfaced and now all collateral deposits and withdrawals are again being treated as taxable disposals.

This is incorrect for my jurisdiction, where collateral deposits and withdrawals are not taxable events when beneficial ownership is retained.

Troubleshooting Completed

-Removed and re-added wallets to force a transaction reload

-Attempted manual retagging

-Reviewed all available tag options

-Checked the support chatbot and help documentation

-Confirmed the issue persists across Aave transactions

Questions / Request

-Can you confirm whether this Aave collateral tagging behavior after wallet re-sync is a known issue?

-Is there a supported way to correctly tag Aave lend/borrow transactions as Add to Pool / Remove from Pool?

-If not, is a fix or update planned to address this, given that it causes non-taxable collateral movements to be treated as taxable events?

-Is there a recommended way to restore the prior correct treatment without manually rebuilding the entire transaction history?

I’d also like to know whether other users are experiencing this issue and if there is a known workaround.

Thank you for your assistance. I appreciate your help in resolving this.

Kind regards,

ST