Integrate Rewards for Borrow Products

Borrowers on Morpho Markets can earn rewards that offset borrowing costs or even generate net positive yields. Integrating rewards display and claiming is essential for showing users their true cost of borrowing.

What's Unique for Borrow Products

When building borrow products, understand that borrowers earn rewards for borrowing an asset from a market

Critical integration requirement:

Net Borrow APY = Borrow APY - Borrow Rewards APR

It is also possible to incentivize a simple collateral deposit (without the borrow action required).

When rewards exceed costs, net APY becomes negative (profitable borrowing).

Integration Steps

Follow the centralized rewards tutorials with borrow-specific considerations:

Step 1: Fetch Market Rewards Data

Follow: Fetch Rewards Data

Borrow-specific notes:

Query state.rewards on market object
Look for borrowApr (rewards for borrowing)
No weighted averaging needed (unlike vaults)

Step 2: Display Rewards in Your UI

Follow: Integrate Rewards Display

Borrow-specific notes:

Show net cost prominently (borrow cost - all rewards)
Highlight when borrowing becomes profitable (negative net APY)
Break down: borrow cost, borrow rewards
List reward tokens with their respective APRs
Calculate per-position rewards based on user amounts

Step 3: Enable Reward Claiming

Follow: Claim Rewards

Important: The claiming process is identical for all Morpho users (borrowers, vault depositors, market suppliers). Both Merkl and URD use the same claiming flow regardless of how rewards were earned.

Complete Integration Example

For a full working reference implementation:

See: Complete Rewards Integration Guide

This guide includes production-ready code using the morpho-merkl-recipe.

Quick Reference

Task	Main Tutorial	Borrow-Specific Consideration
Understanding rewards	Reward Campaigns	Understand dual eligibility
Distribution system	Distribution System	Same Merkl/URD for all users
Fetch rewards	Fetch Rewards Data	Query single location, no aggregation
Display rewards	Integrate Display	Show net cost after rewards
Claim rewards	Claim Rewards	Same process for all users

Need Help?

Conceptual questions: Rewards for Borrowers Concept
Main rewards guide: Rewards Integration Guide
Technical support: help.morpho.org
Example code: morpho-merkl-recipe