Skip to content
Close
Distribute incentives
Launch app
Distribute incentives
Launch app

Merkl vs. RoycoMerkl vs. Royco

Merkl and Royco are both incentive platforms that help protocols, DAO, and chains attract liquidity by rewarding liquidity providers (LPs).
 
However, the functioning of the two platforms is different, as are the features and options they offer, and the fees they charge.

Royco

One of the fundamental differences between Merkl and Royco is that, with Royco, users do not deposit liquidity directly into the protocols offering incentives. Instead, users deposit and lock their assets on Royco. As a result, users often withdraw their liquidity from Royco once their assets are no longer locked.

The second major difference between Royco and Merkl lies in concentrated liquidity campaigns (Uniswap v3), which Royco does not currently support.

Additionally, Royco lacks a “forwarding” mechanism that rewards users who have their assets deposited in a liquidity manager contract (ALM). This feature is critical to ensuring fairness in distribution and avoiding a scenario where liquidity managers, rather than the actual liquidity holders, receive the incentives.

Finally, Royco is typically more expensive than Merkl, as it charges higher fees on distributed incentive amounts. Moreover, Royco does not offer boosting options to customize and gamify incentive campaigns.

Merkl

Unlike Royco, Merkl is a non-custodial platform that does not hold any user funds. Users deposit their liquidity directly into the protocols. This allows protocols to retain more of the user-deposited liquidity even after the incentives have ended.

Another key difference between Merkl and Royco is that Merkl operates offchain, allowing campaign creators unlimited customization options.

Merkl is an expert in concentrated liquidity, which was the primary use case it was designed for. Although Merkl now offers far more services than just concentrated liquidity, this expertise gives Merkl a unique advantage among all incentive distribution platforms today.

Furthermore, Merkl excels in incentive forwarding, enabling asset holders to earn incentives even when their assets are locked in staking contracts or managed by a liquidity manager.

Merkl is also the only platform of the two to offer cross-chain incentives. For example, it allows incentivizing a pool on the Ethereum network while distributing rewards on the BNB chain.

Finally, with Merkl, campaign creators don’t need to allocate resources or involve developers to launch a campaign—they can simply use Merkl’s self-serve frontend.

In the end, Merkl provides lower fees and more options for customizing campaigns, making it a more versatile and cost-effective solution.

‎Logo comparison table.‎002
‎Logo comparison table.‎001
Non-custodial
Concentrated liquidity
Lending and borrowing
Point system
Airdrop
Grant program
Raffle
Boost
Forwarding
Bridging
Social tasks
Campaign leaderboard
User dashboard
Campaign creator dashboard
API integration
White-labeled frontend
Self-serve campaign creation
Merkl stories

Discover how top projects grow using Merkl

merkl-stories-uniswap-1
TOUCH
Uniswap
UniswapRead case study
merkl-stories-superfest
TOUCH
Optimism
OptimismRead case study
merkl-stories-ignite
TOUCH
ZKsync
ZKsyncRead case study
merkl-stories-trust
TOUCH
Trust Wallet
Trust WalletRead case study

FAQ

What is Merkl? Merkl is the leading incentive and point management platform in DeFi, backed by a16z. We help blockchains and protocols boost liquidity across any DeFi venue. Since our launch in November 2023, we've distributed over $100 million in incentives across 40+ chains, with 150+ protocols running 16,000+ campaigns. We're the team behind all Uniswap, Euler, ZKsync and Optimism incentives.
How do incentive platforms work? Incentive platforms automate and optimize the distribution of rewards based on user activity. They connect users with web3 projects looking to boost activity and engagement. Users perform actions (hold token, supply liquidity,…) and earn rewards, while web3 projects boost their growth (TVL increase, user engagement,…). There are different types of incentive platforms: custodial, non-custodial, social-focused, DeFi-focused, etc.
What types of incentive campaigns does Merkl support?

Merkl supports a wide range of incentive campaign types across 40+ chains:

  • Liquidity incentives for concentrated liquidity pools (CLAMM) like Uniswap v3 & v4
  • Airdrops (to a predefined list or users meeting specific criteria)
  • Rewards for ERC20 token holders, based on their balance over time (e.g., LP token holders)
  • Lending & borrowing incentives across protocols like Aave, Compound, Morpho, Euler, Silo, Radiant, and Dolomite
  • Point systems to drive engagement and retention

And we're constantly expanding with new use cases!
Does Merkl charge fees?

Campaign creation comes with a 3% maintenance fee, except for airdrop campaigns, which have a reduced 0.5% fee. Merkl is free for retail users, aside from gas fees.

For custom or long-term incentive programs, reach out to us — we’d be happy to discuss tailored pricing!
What are the best incentive strategies?

Choosing the right incentive strategy depends on your goals and needs. For instance, during a token launch, it’s often best to hold off on incentives until the price stabilizes, whereas for a stablecoin, building a liquidity wall can be a smart move. These are just a couple of many possible approaches.

Additionally, optimizing a campaign also means selecting the right reward distribution model—whether it's fixed APR, variable APR, or event-based rewards (e.g., swaps, follows on X, etc.).
How to get started with Merkl incentives?

Distributing incentives with Merkl is quick and easy. Just head over to Merkl Studio, set up your campaign parameters (amount, chain, dates, etc.), and launch it in a few clicks!

If you're planning a large-scale incentive program, need advanced customization, or have any questions along the way, feel free to reach out — we’re here to help!

Ready to get started?

Start incentivizing
Book demo