Confidential Incentives for DeFi with Zama and Merkl

Zama and Merkl have launched confidential incentive campaigns for 16 Morpho vaults, allowing users to earn rewards on encrypted deposits without publicly revealing their balances, strategies, or reward amounts. The integration supports Zama’s ERC7984 confidential token standard by enabling depositors to delegate limited balance-viewing access to Merkl, which then calculates time-weighted rewards while keeping participant data and leaderboards private. Rewards accrue from the start of participation and will be claimable in the coming weeks through confidential token transfers. Zama presents the initiative as a step toward making confidential DeFi applications, including real-world assets, payments, and trading, viable by extending privacy support across infrastructure such as wallets, explorers, custodians, aggregators, market makers, and incentive systems.

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