Boosting Rewards for token or NFT holders

Merkl allows you to boost rewards for users holding a specific token or NFT. The formula used for boosting is similar to Curve Finance’s but offers greater flexibility, as there is no 2.5x limit on boosting rewards for a user.

Curve Formula

$$B = \min \left( 2.5, 1.5 \times \frac{D \times v}{V \times d} + 1 \right)$$

Where

• B is the boost a user receives.

• d is the value a user deposits, in USD.

• D is the total value deposited to the pool/vault, in USD.

• v is the amount of veCRV a user has (vote weight).

• V is the total veCRV in the system (total vote weight).

Merkl Boost

There is no minimum value, and you can boost users holding any token as much as you want!

Merkl Formula for Boost

$$B = b \times \frac{R \times v}{V \times r} + 1$$

Where:

• B is the boost a user receives.

• b is the boost multiplier selected by the Incentive Provider when creating a campaign (visible in the front end in the campaign creation page).

• R is the total amount of rewards distributed per epoch.

• r is the user’s rewards per epoch.

• V is the total supply of the token used for the boost (for NFTs, it’s the number of NFTs in a collection).

• v is the amount of the token held by the user during an epoch (or the number of NFTs held if applicable).

Applicable boost:

• For CLAMM campaigns.

• For any ERC20 tokens, including:

  • Constant Product AMM.

  • Holding a token campaign.

  • Lending/borrowing campaigns (with debt and receipt tokens).

  • For any campaigns on protocols that utilize ERC20 tokens

• For custom integrations: This feature is not automatically enabled. If you are interested, please reach out by opening a BD ticket in our Discord or directly contacting us via Telegram

Boost for NFT Collections

We offer the ability to boost rewards based on the number of NFT a user holds from an NFT collection. If you'd like to set up a campaign with an NFT boost, please contact us to ensure the setup is configured accurately.