Flare FAssets Warning: Prevent a Costly Mistake! ⚠️💥

[@monkeytube32]

Great point you made here, DeFi Divvy.

[@DeFiDivvy]

Thank you!

[@semsolar9273]

impermanent loss going to be a consideration with FAssets?

[@DeFiDivvy]

Great question: Yes depending on where you deploy your FAssets. I recommend doing a deep dive on IL so you'll know which types of DeFi has impermanent loss risk.

[@jcasi003]

Just having your asset sit as an F Asset, will not accrue Impermanet Loss?

[@DeFiDivvy]

@@jcasi003 I am not sure why you'd mint an FAsset to just "sit as an FAsset". Can you earn that way? I believe you have to put it to work in DeFi

[@Pl2045]

I was under impression you could simply mint..

[@pbono6758]

Yes. When you mint and simply hold an F asset you can get FLR from the reward pool.

[@Anubis_crypto]

As always great video Matthew 👏

[@DeFiDivvy]

Thank you!

[@dee3953]

How do you set it up?

[@frankvalentich62]

Taking a small loan out against our Crypto is coming also. Pay no taxes

[@DeFiDivvy]

Looking forward to it!

[@ThuyPham-lr5dc]

Good morning Matthew🎉🎉🎉 Hua Hin beach tomorrow 🎉🎉🎉 Let’s gooooooo Flare❤❤❤❤

[@DeFiDivvy]

Oh man I would love to meet up on Hua Hin. Enjoy Thuy!

[@ThuyPham-lr5dc]

@@DeFiDivvy First 10 Chang on me pal!

[@Cryptoview_1]

i think not sure but tax is base on FIFO ( first in first out) so you can't use fresh tokens?

[@DeFiDivvy]

That's a good point. I think there is an option on Coinbase where you can report the order of in / out if you want. I forgot the name of it.

[@david8769-d8p]

Good thoughts!

[@DeFiDivvy]

Thanks David!

[@juliusarceo3800]

Excellent point you brought up. Not tax advice but....in this case, a taxpayer will need to use the Speficic ID method of accounting in order to select individual purchases of BTC with the highest cost basis. If they've already filed crypto taxes in prior years using the LIFO or FIFO method, then they will need to change this by notifying the IRS. Now imagine the crypto investor has DCA'd into BTC over many years, accumulating many fractions of BTC at different prices throughout the Bull/Bear market, and has amassed 10 BTC. Taxpayer then decides to put 5 BTC into F-assets system. How many fractions of BTC (individual purchases) each with different cost bases represent that 5 BTC???? This would be a tax accounting nightmare if a failed redemption occurs. But I don't care, I'm all in on Flare and the F-asset system!!!

[@DeFiDivvy]

Great points. Thanks for watching and for for pointing out the name of 3rd option over LIFO and FIFO!

[@dudanoseporque]

in my country its diffrent first btc value 10 to 100k. first you need to subtract your investment 10 k you only pay 0,25 on the 90 k. because your 10 k was already taxed before. f assets needs to be live on the chain to see the results :)

[@XxXxXBig]

Yep same as he said. 90k gain. 25% on the 90k. Tax

[@DeFiDivvy]

Yep, same here. Taxed on the $90K appreciation. No tax on the $10K cost basis.

[@bullishx.r.p.blacc23merriw53]

Thank you

[@DeFiDivvy]

Thanks for watching!

[@Spartan69117]

That’s why SGB/FLR have to have higher value as collateral and insurance

[@charliebacchus5360]

@DeFi Divvy - Matthew can you give an explanation to the weekly FTSO rewards ? What are the factors that would increase or decrease the amount. Activity ? The last 2-weeks SGB rewards have significantly dropped. I do not see anything changing with my chosen providers.

[@DeFiDivvy]

Definitely worthy of a couple dedicated videos. Multiple variables in play. Thanks for the idea and suggestion! To be continued...

[@charliebacchus5360]

@@DeFiDivvy thank you much for taking the time to respond... much appreciated. I look forward to your educational Videos. Have a GR8 weekend. Cheers

[@Scott-iw8yr]

I thought a taxable event occurs anytime you swap tokens

[@DeFiDivvy]

That is my understanding as well. And if there's no appreciation on the base token then there shouldn't be a gain to be taxed.

[@paulfrank158]

What do you think about the Forbes article ?????????????????????????????????????????????????

[@DeFiDivvy]

I didn't see it. Which one?

[@freddythefly]

Finally fAssets🥳LFG FLR🔥🔥

[@DeFiDivvy]

Let's go Freddy!

[@user-mb1rq1dn4i]

So in this scenario what are you supposed to do with your BTC? Just have it's value sitting there not earning any yield. If so then there is no point in having the F-assets system.

[@DeFiDivvy]

Depends on each person's tax situation. If in your location wrapping alone is taxable, then you'll want to factor in that tax to calculate your break even before you're in profit. In my example, if I simply wrap a coin with a $90K gain (taxed owed $22.5K), then I know my profit doesn't kick in until I make that additional amount to pay off the cap gains.

[@Guust_Flater]

So...waiting till XRP gets a high value, then transfer to FXRP, so that during the next bear market, you have an unrealized loss on your XRP. You don't care, because you do not want to sell, but still making gains with your FXRP. Right !? 🤷‍♂️

[@dee3953]

I'm confused 😢

[@aqadaptiveintelligence]

Don’t lose money. buy more FLR & SGB. NOW.

[@DeFiDivvy]

I love when things are on sale.

[@aqadaptiveintelligence]

@@DeFiDivvy ye hope you did. About to moonrocket up 🚀 ⬆️

[@marchandfield4557]

keep up posting "whale list" an these videos. Great Work.

[@DeFiDivvy]

Thank you sir, will do!

[@Knackers_Oreilly]

Flare has a bright future

[@DeFiDivvy]

Yessir!

[@mikeodonnell14]

Flare is should a great asset that its STILL sitting at .024 cents.... I have a large bag and hate to see this much $$ tied up for 4 yrs now... uugghhhh

[@DeFiDivvy]

My larger bags are in bigger cryptos with strong metcalfe's metrics. But fingers crossed FLR has a nice move soon. I have been stacking from airdrops and delegations for a while now, along with some fun DeFi

[@MrArjan23]

FLare is build too be stronger in a bear marked

[@DeFiDivvy]

I like the sound of that. Thanks for stopping by.

[@Xrp944]

So what if you got 100 of thousands of xrp how do you find the price of them? Hate the tax man you can’t do anything lol

[@DeFiDivvy]

To get your cost basis you divide the total USD you put into XRP by the total amount of XRP tokens you have. For example, if you put in $50,000 over a 6 year period and you own 150000 XRP, your cost basis for XRP is 33 cents per token. ($50,000/150,000 XRP)

[@Xrp944]

@@DeFiDivvy thanks I don’t even know how much I put in over the years been buying for so long,

[@hoos.crypto]

Wotcha Matthew. Excellent video sir. I've shared and features with phrens & phams on fBs.

[@DeFiDivvy]

Much appreciated! Thanks for dropping in on YT. See you on Twitter!

[@Xrp944]

All I wanted to do is delegate my xrp like we do with flare,

[@futuresbright8023]

interesting tax talk

[@DeFiDivvy]

Thanks Future. Something to consider for your profits!