Locking collateral such as ETH in a MakerDAO vault (a collateralized debt position) and minting DAI against it. The DAI is a loan, not a sale of the collateral.
Minting DAI against collateral is borrowing: no income, no disposal, and the collateral keeps its basis and holding period. The tax events are the liquidation if the vault is undercollateralized, and any sale of the DAI itself, which is a stablecoin with its own basis of $1 per unit at minting.
No. It is a loan against collateral. Tax arises on a liquidation, on repayment if you sell collateral to fund it, or on disposing of the DAI.
Source: IRC 1001; IRS Notice 2014-21
Last reviewed September 18, 2026. Tax rules change; confirm current law before acting.
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