Swaps
Swapping one token for another is a disposal of the token you give up in most countries. papertax exports each swap as a trade, so Koinly or Crypto Tax Calculator can apply your cost-base method across all your wallets.
Lending and borrowing
Borrowing from HyperLend, Felix or a similar protocol is recorded as a loan, not income, and the collateral you lock is a protocol deposit. Repaying is listed too and flagged: repaying in a token whose price has moved since you borrowed it may be a disposal. Supplying tokens to earn interest is a protocol deposit, and interest received is listed for review.
Liquidity positions
Concentrated liquidity on HyperSwap, Project X, KittenSwap and similar pools is held as an NFT position. papertax records opening and adding as deposits, removing and closing as withdrawals, and fees collected as income to review. Whether a deposit is itself a disposal depends on where you live: the UK, New Zealand and Canada have guidance, others don't yet.
Liquid staking
Staking HYPE for kHYPE, stHYPE or a similar token is recorded as a protocol deposit. Some tax offices treat wrapping or swapping into a different token as a disposal, so it is flagged for review.
Gas and tokens received
Gas is recorded as a cost in HYPE. Tokens that arrive from other wallets are listed for you to mark as income or as your own transfer, and tokens Hyperliquid lists on spot are valued at their daily close.
Questions
Is borrowing on HyperLend taxable?
Borrowing is generally not income. papertax lists the loan and treats your collateral as a protocol deposit. Repayments are flagged, because repaying in a token whose price moved may be a disposal.
How are liquidity positions taxed?
It depends on your country. papertax records adding and removing liquidity as protocol deposits and withdrawals, and LP fees as income to review, so your tax software or adviser can apply local rules.
Is staking HYPE for kHYPE a taxable event?
It may be. Some tax offices treat swapping into a different token as a disposal even when it represents the same HYPE, so papertax flags it for review.