Confidential Rewards with Merkl Are Now Available to Claim

Confidential rewards are now available to claim.

Users who participated in Merkl incentive campaigns on Zama's confidential vaults can now claim their $cZAMA rewards directly in the Zama app. Rewards are settled through confidential transfers, so your position and your reward amount stay confidential from deposit to payout.

In September, Zama launched confidential access to 16 curated vaults on Morpho, alongside the first confidential incentive campaigns with Merkl. These campaigns allow depositors to earn $ZAMA rewards on top of their vault yield, with rewards calculated on encrypted balances. Read the annnouncement: Confidential Incentives for DeFi with Zama and Merkl.

With claiming now available, users can complete the entire journey, from earning yield to receiving incentives, without publicly exposing their positions or rewards.

How confidential rewards work

Traditional DeFi incentive campaigns rely on publicly visible balances to calculate and distribute rewards.

With confidential vaults, individual positions are encrypted. This introduces a challenge: how can depositors receive incentives without revealing how much they hold or earn?

Zama's integration with Merkl addresses this through confidential balance viewing and reward distribution.

When depositing into an eligible vault, users can enable "Get an extra +X% APY", which allows Merkl to access their encrypted balance through delegated viewing permissions.

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This permission is enabled by default in the deposit interface. It allows Merkl to calculate rewards without making individual positions publicly visible. Deposits that are not shared with Merkl are not eligible for these incentives.

Depending on the vault type, rewards are distributed in one of two ways:

• ‍Confidential vaults: Rewards accrue based on users' confidential vault shares (cShares) and can be claimed while the campaign is active.‍
• Existing public vaults with confidential access: Rewards are earned collectively by the vault wrapper and distributed to eligible depositors after the campaign ends.

In both cases, rewards are claimed through confidential transfers, keeping individual positions and payouts private.

For more technical details, see the Confidential Vault Incentives documentation.

When can you claim your rewards?

Claiming timelines depend on the campaign type:

• Confidential campaigns: Rewards accrue while you hold your position and can be claimed while the campaign is active. We recommend claiming at the end of the campaign to avoid multiple gas fees.
• Public campaigns: Rewards become available to claim within a few days after the campaign ends.

For example, the campaign on the Flowdesk Confidential High Yield USDT vault on Morpho ended on October 12. If you deposited into this vault and met the campaign requirements, your rewards are now available to claim.

You can check campaign details and end dates on Merkl.

How to claim your confidential rewards

Claiming takes just a few steps:

1. Check your rewards.Open the campaign on Merkl and sign in with your wallet to see what you have earned.
2. Connect to the Zama app. Open the Zama app and connect the same wallet.
3. Claim your rewards. They arrive as a confidential transfer in $cZAMA, so the amount is never visible onchain.

Claim your rewards in the Zama app

With confidential reward claiming now available, users can earn vault yield, participate in incentive campaigns, and receive rewards without exposing their financial positions or payouts publicly.

Not earning rewards yet? Explore eligible confidential vaults and their incentive campaigns in the Zama app.

Additional links

• Zama app: app.zama.org
• Incentives documentation: docs.zama.org/protocol/confidential-vault/use-the-app/incentives
• Confidential Incentives for DeFi with Zama and Merkl: www.zama.org/post/confidential-incentives-for-defi-with-zama-and-merkl
• Contact the team: zama.org/contact
• Zama on X: x.com/zama
• Zama on Telegram: t.me/zama_on_telegram