Lending and Borrowing Campaigns

Reward users who lend, borrow, or use tokens as collateral in lending markets

Merkl supports supply, borrow, and collateral positions on most lending markets (Aave, Morpho, Euler, Compound, Fluid, Dolomite, and many more). Markets that issue receipt and debt tokens also work as token holding campaigns. Use the Merkl Studio templates to create a campaign.

🔁 Preventing lending loops

Merkl allows campaign creators to reward users based on their net lending position (lending minus borrowing) to avoid lending and borrowing loops.

As a campaign creator, you have the possibility to enable net lending on a specific opportunity. When enabled, users will not get extra rewards by borrowing the same asset and re-lending it again. This is to ensure there are no infinite loops & unefficient TVL.

For example, if you lend $100 wstETH and borrow $60 wstETH, you get rewarded for $40 wstETH ($100 - $60).

Note: this is not always the case. If you’ve got a doubt about net lending when preparing a campaign, feel free to reach out to us.

🦋 Morpho multi-market campaign

With Merkl you can incentivize a single token (e.g. USDC) across all Morpho markets with just one campaign!

No need to precise a specific markets or vault to incentivize.

Merkl detects all Morpho markets where the selected incentivized token is active and also identifies every wallet that interacted with those markets. Then, Merkl automatically cascades rewards across every whitelisted Morpho markets where the token is used based on:

• the liquidity and size of each market
• the user’s share of liquidity

To create a multi-market campaign, you just need to select any of these three options when selection an action to incentivize in the Choose target step in Merkl Studio:

• Supply a token to any market
• Borrow a token from any market
• Use a token as collateral on any market