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Curve LP tokens and gauge staking

Depositing into a Curve pool for an LP token, then staking that LP token in a gauge to earn CRV rewards, and often depositing the gauge position into Convex for boosted rewards.

What is Curve LP tokens and gauge staking?

Depositing into a Curve pool for an LP token, then staking that LP token in a gauge to earn CRV rewards, and often depositing the gauge position into Convex for boosted rewards.

Why it matters on your return

Each layer is a potential exchange under the common position: pool deposit (tokens for LP token), gauge stake (LP token for a staked position), Convex deposit (a third receipt). Rewards in CRV and CVX are income when claimable. Unwinding reverses each step.

Example

You deposit USDC and USDT into a Curve pool, stake the LP token in the gauge, and deposit that into Convex. Over the year you claim $2,000 of CRV and CVX. The rewards are income; the three deposits and three withdrawals are exchanges under the common position.

Is staking a Curve LP token in a gauge taxable?

Unsettled. Many practitioners treat the gauge stake as a deposit of the same asset (not taxable) and the pool deposit as an exchange. The rewards are income either way. We document the position taken.

Source: No IRS guidance as of September 2026; IRS Notice 2014-21 (property treatment)

Last reviewed September 18, 2026. Tax rules change; confirm current law before acting.

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