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Rewards on Morpho

Morpho Rewards Concept

What are Rewards?

Rewards are incentives distributed to Morpho users to encourage specific behaviors like supplying assets, borrowing, or providing collateral. These rewards typically come in the form of tokens (like MORPHO or other assets) and are provided by:

  • The Morpho governance
  • Market creators bootstrapping liquidity
  • Vault curators attracting depositors
  • Token issuers promoting asset usage

Types of Rewards

Vault Rewards

Vault depositors can earn rewards from two sources:

  • Vault Campaigns: Direct rewards for depositing into a specific vault
  • Market Campaigns: Rewards automatically forwarded from underlying markets where the vault allocates

This dual-source structure allows vault depositors to benefit from multiple incentive programs simultaneously.

Market Rewards

Market participants can earn rewards based on their activity:

  • Supply Rewards: For supplying assets to a market
  • Borrow Rewards: For borrowing from a market

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

Borrowers can earn rewards on their borrow position, potentially offsetting or exceeding their borrowing costs.

How It Works

  1. Earning: Rewards accrue automatically while you participate in incentivized vaults or markets
  2. Computation: Rewards are calculated offchain based on your onchain activity
  3. Distribution: Rewards become claimable through Merkl
  4. Claiming: Claim your earned rewards before the applicable claim deadline

Distribution System

All Morpho rewards are distributed through Merkl, which updates every 8 hours and handles all active programs.

Users simply need to participate in the protocol to earn rewards. No special actions are required beyond claiming before the applicable deadline.

For Merkl campaigns distributed by Morpho governance, unclaimed rewards are reallocated 6 months after the campaign ends. Once reallocated, these rewards are no longer claimable.

Learn More

For Users:
  • Rewards accumulate automatically while you use Morpho
  • Claim rewards through the Morpho interface before the applicable deadline
  • Tutorial: How to Claim Rewards
For Developers: