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Merkl Distribution Systems

Merkl is a third-party rewards distribution platform that has become the standard for Morpho rewards following MIP 111.

How Merkl Works

  1. Offchain Computation: Merkl's infrastructure continuously monitors onchain activity and calculates earned rewards
  2. Merkle Tree Generation: Every 8 hours, Merkl generates a new Merkle tree containing all claimable rewards
  3. Onchain Distribution: The Merkle root is posted onchain, making rewards claimable
  4. User Claims: Users can claim their rewards by submitting a transaction with their Merkle proof

Key Characteristics

Fast Updates
  • Rewards are recalculated every 8 hours
  • Users see their accruing rewards in near real-time
  • No waiting period between earning and claiming
Standardized Integration
  • Consistent API across all protocols using Merkl
  • Well-documented claiming process
  • Community-supported SDKs and tools
Multi-Protocol Support
  • Same infrastructure used by many DeFi protocols
  • Familiar UX for users who've claimed rewards elsewhere
  • Centralized infrastructure for reward discovery

When to Use

Integrate Merkl for:

  • All new reward programs (July 2025 onwards)
  • Current MORPHO token distributions
  • Third-party incentive programs
  • Real-time reward tracking

Merkl Integration Points

For Displaying Rewards:
  • Merkl API: https://api.merkl.xyz/v4/ - Query reward rates and user balances
  • Morpho API (Alternative option): https://api.morpho.org/graphql - Integrated vault/market rewards data. This api is ingesting Merkl api.
For Claiming Rewards:
  • Merkl Claim API: Provides Merkle proofs and transaction data
  • Merkl Smart Contracts: Where claims are executed onchain
  • See Merkl's claiming documentation

Computation and Data Sources

Both systems rely on offchain computation of rewards. This is necessary because:

  1. Complex logic: Reward calculations involve historical data, forwarding, and blacklisting
  2. Gas efficiency: Computing onchain would be prohibitively expensive
  3. Flexibility: Allows for sophisticated distribution strategies
Merkl:
  • Monitors onchain activity directly via RPC nodes
  • Proprietary indexing infrastructure
  • Real-time event processing

Timeline: Rewards earned now are claimable within 8 hours

Next Steps