Merkl allows to incentivize concentrated liquidity without staking contract.
Today we know that concentrated liquidity is one the best things that happened to Defi:
It enables more trading volume with less liquidity, and
It generates more fees for liquidity providers.
With Merkl, rewards distributions on concentrated liquidity can be customized to favor positions with a tighter range or a specific balance of tokens.
Stake easily on concentrated liquidity pools
Before Merkl, incentivizing concentrated liquidity was hard.
Thanks to Merkl, you don’t need to lock your funds in staking contracts anymore. You can just deposit deposit the funds in any incentivized pools and Merkl will do the job of streaming the token rewards to you.
The system reads the onchain data of your position and distribute your rewards accordingly. This is done according to parameters set by the protocols incentivizing the pool.
This means no additional risk of loss when being incentivized for your liquidity.
Customize how you distribute incentives
One important feature of Merkl is the ability to customize how much incentives each address receives.
What you will receive as an LP depends on:
The usage of your liquidity: is it effectively used for swaps?
The balance of tokens in your position: do you hold more of one token than the other ? For example, in an agEUR-USDC pool, the balance of agEUR vs USDC you deposit will influence the rewards you receive.
Specific tokens you hold. For example, a project can reward community members that hold their token on their address to increase the rewards they receive (boosting).
All addresses on a pool are ranked according to those parameters that the projects can set.
Protocols can also choose to reward liquidity that is not necessarily used for swaps but is on the pool (out-of-range liquidity).
This flexibility allows protocols to make sure they spend incentives on useful and not idle or inefficient liquidity.
Start using Merkl today
All pools currently using Merkl to distribute their incentives are on merkl.angle.money.
There, you will find the best opportunities to provide liquidity, earn fees, and receive token rewards at the same time.
If you want to start incentivizing liquidity though Merkl, you can do so directly here or reach out to us on Discord or Twitter.
For more information, you can check out Merkl’s documentation.
