Imagine someone who bought ETH for $1,000, watched it climb to $4,000, and now wants to cash out $1,000. Selling one-quarter of the ETH would provide the cash, but it would also realize a $750 gain under US tax treatment of digital assets held for investment. However, DeFi offers another way.
Source: [CryptoSlate](https://cryptoslate.com/how-the-buy-borrow-die-tax-trade-is-quietly-loading-defi-pools-with-hidden-credit-risk/)