How Merkl works

Learn how stablecoin issuers, fintechs, exchanges, and tokenized funds distribute yield, dividends, and rewards through Merkl

Step 1 / 5

Set up the distribution parameters

Companies define the parameters of their distribution: payout token, amount, schedule, and eligibility criteria. Configure it directly on Merkl Studio, or let the Merkl team guide you through the setup. Once funds are deposited, the distribution goes live within an hour.

Explore campaign parameters

Step 2 / 5

Merkl tracks every onchain event

Merkl tracks every onchain event matching the eligibility rules: holding tokenized shares, holding stablecoins, providing liquidity, supplying to lending markets, or any custom activity. Tracking is continuous at the block level and never relies on discretionary snapshots.

Step 3 / 5

The Merkl Engine computes the payouts

Every 2 hours, the Merkl Engine matches indexed onchain data with the distribution rules to compute each recipient's payout. Pending allocations become visible to recipients ahead of the next distribution cycle.

Step 4 / 5

The Merkl Engine distributes payouts onchain

Every 8 hours, the Merkl Engine generates a Merkle Tree to batch computed payouts and push them onchain. Recipients can then claim their payouts from any integrated interface, including the Merkl App.

Step 5 / 5

Monitor with real-time analytics

Track every distribution from Merkl Studio: distribution volume, recipient counts, eligible activity, TVL, APR, and any custom metric. Adjust the parameters while it's running, or renew the distribution once it ends.