The UK tax authorities adopted the "no profit, no loss" tax treatment for DeFi, which the founder of Aave called a major victory for users.

HMRC (Her Majesty's Revenue and Customs) has published the results of its tax consultation on DeFi lending and staking activities, proposing a "No Gain No Loss" (NGNL) tax treatment, which means that when users deposit crypto assets into protocols such as Aave, it will not be considered a capital gain disposal.