diff --git a/pallets/subtensor/src/staking/stake_utils.rs b/pallets/subtensor/src/staking/stake_utils.rs
index 21ff1a57d5..1cbd0d2b76 100644
--- a/pallets/subtensor/src/staking/stake_utils.rs
+++ b/pallets/subtensor/src/staking/stake_utils.rs
@@ -21,6 +21,10 @@ impl<T: Config> Pallet<T> {
         SubnetAlphaIn::<T>::get(netuid).saturating_add(SubnetAlphaOut::<T>::get(netuid))
     }
 
+    pub fn get_protocol_tao(netuid: NetUid) -> TaoCurrency {
+        T::SwapInterface::get_protocol_tao(netuid)
+    }
+
     pub fn get_moving_alpha_price(netuid: NetUid) -> U96F32 {
         let one = U96F32::saturating_from_num(1.0);
         if netuid.is_root() {
@@ -688,6 +692,9 @@ impl<T: Config> Pallet<T> {
         price_limit: TaoCurrency,
         drop_fees: bool,
     ) -> Result<TaoCurrency, DispatchError> {
+        // Record the protocol TAO before the swap.
+        let protocol_tao = Self::get_protocol_tao(netuid);
+
         //  Decrease alpha on subnet
         let actual_alpha_decrease =
             Self::decrease_stake_for_hotkey_and_coldkey_on_subnet(hotkey, coldkey, netuid, alpha);
@@ -696,6 +703,11 @@ impl<T: Config> Pallet<T> {
         let swap_result =
             Self::swap_alpha_for_tao(netuid, actual_alpha_decrease, price_limit, drop_fees)?;
 
+        // Record the protocol TAO after the swap.
+        let protocol_tao_after = Self::get_protocol_tao(netuid);
+        // This should decrease as we are removing TAO from the protocol.
+        let protocol_tao_delta: TaoCurrency = protocol_tao.saturating_sub(protocol_tao_after);
+
         // Refund the unused alpha (in case if limit price is hit)
         let refund = actual_alpha_decrease.saturating_sub(
             swap_result
@@ -722,7 +734,7 @@ impl<T: Config> Pallet<T> {
         // }
 
         // Record TAO outflow
-        Self::record_tao_outflow(netuid, swap_result.amount_paid_out.into());
+        Self::record_tao_outflow(netuid, protocol_tao_delta);
 
         LastColdkeyHotkeyStakeBlock::<T>::insert(coldkey, hotkey, Self::get_current_block_as_u64());
 
@@ -761,9 +773,18 @@ impl<T: Config> Pallet<T> {
         set_limit: bool,
         drop_fees: bool,
     ) -> Result<AlphaCurrency, DispatchError> {
+        // Record the protocol TAO before the swap.
+        let protocol_tao = Self::get_protocol_tao(netuid);
+
         // Swap the tao to alpha.
         let swap_result = Self::swap_tao_for_alpha(netuid, tao, price_limit, drop_fees)?;
 
+        // Record the protocol TAO after the swap.
+        let protocol_tao_after = Self::get_protocol_tao(netuid);
+
+        // This should increase as we are adding TAO to the protocol.
+        let protocol_tao_delta: TaoCurrency = protocol_tao_after.saturating_sub(protocol_tao);
+
         ensure!(
             !swap_result.amount_paid_out.is_zero(),
             Error::<T>::AmountTooLow
@@ -799,7 +820,7 @@ impl<T: Config> Pallet<T> {
         }
 
         // Record TAO inflow
-        Self::record_tao_inflow(netuid, swap_result.amount_paid_in.into());
+        Self::record_tao_inflow(netuid, protocol_tao_delta);
 
         LastColdkeyHotkeyStakeBlock::<T>::insert(coldkey, hotkey, Self::get_current_block_as_u64());
 
diff --git a/pallets/subtensor/src/tests/staking.rs b/pallets/subtensor/src/tests/staking.rs
index 27c5b5c16d..4146786709 100644
--- a/pallets/subtensor/src/tests/staking.rs
+++ b/pallets/subtensor/src/tests/staking.rs
@@ -5596,14 +5596,13 @@ fn test_staking_records_flow() {
         mock::setup_reserves(netuid, tao_reserve, alpha_in);
 
         // Initialize swap v3
-        let order = GetAlphaForTao::<Test>::with_amount(0);
-        assert_ok!(<tests::mock::Test as pallet::Config>::SwapInterface::swap(
-            netuid.into(),
-            order,
-            TaoCurrency::MAX,
+        SubtensorModule::swap_tao_for_alpha(
+            netuid,
+            TaoCurrency::ZERO,
+            1_000_000_000_000.into(),
             false,
-            true
-        ));
+        )
+        .unwrap();
 
         // Add stake with slippage safety and check if the result is ok
         assert_ok!(SubtensorModule::stake_into_subnet(
diff --git a/pallets/swap-interface/src/lib.rs b/pallets/swap-interface/src/lib.rs
index ae7d375f97..19af1303c1 100644
--- a/pallets/swap-interface/src/lib.rs
+++ b/pallets/swap-interface/src/lib.rs
@@ -39,6 +39,7 @@ pub trait SwapHandler {
 
     fn approx_fee_amount<T: Currency>(netuid: NetUid, amount: T) -> T;
     fn current_alpha_price(netuid: NetUid) -> U96F32;
+    fn get_protocol_tao(netuid: NetUid) -> TaoCurrency;
     fn max_price<C: Currency>() -> C;
     fn min_price<C: Currency>() -> C;
     fn adjust_protocol_liquidity(
diff --git a/pallets/swap/src/pallet/impls.rs b/pallets/swap/src/pallet/impls.rs
index 34b5e624e6..74f6d410d5 100644
--- a/pallets/swap/src/pallet/impls.rs
+++ b/pallets/swap/src/pallet/impls.rs
@@ -1112,6 +1112,24 @@ impl<T: Config> SwapHandler for Pallet<T> {
         Self::current_price(netuid.into())
     }
 
+    fn get_protocol_tao(netuid: NetUid) -> TaoCurrency {
+        let protocol_account_id = Self::protocol_account_id();
+        let mut positions =
+            Positions::<T>::iter_prefix_values((netuid, protocol_account_id.clone()))
+                .collect::<sp_std::vec::Vec<_>>();
+
+        if let Some(position) = positions.get_mut(0) {
+            let current_sqrt_price = AlphaSqrtPrice::<T>::get(netuid);
+            // Adjust liquidity
+            let maybe_token_amounts = position.to_token_amounts(current_sqrt_price);
+            if let Ok((tao, _)) = maybe_token_amounts {
+                return tao.into();
+            }
+        }
+
+        TaoCurrency::ZERO
+    }
+
     fn min_price<C: Currency>() -> C {
         Self::min_price_inner()
     }