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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
  • Collateral Rewards: For providing collateral in a market

Borrowers can earn both borrow and collateral rewards simultaneously, 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 (current) or URD (legacy) systems
  4. Claiming: Claim your earned rewards anytime with no deadline

Distribution Systems

Morpho rewards are distributed through two systems:

  • Merkl (Current): Updates every 8 hours, handles new programs
  • Morpho URD (Legacy): Handled historical programs, rewards still claimable

Users simply need to participate in the protocol to earn rewards. No special actions required beyond claiming when convenient.

Learn More

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