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  • Detailed flow for each additional rewards distribution models
  • How to perform these transactions?

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  1. Kiln Products
  2. DeFi
  3. How to integrate?

Additional Rewards Management

PreviousSupported DeFi ProtocolsNextSecurity

Last updated 24 days ago

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Some DeFi protocols deploy incentives programs (like governance tokens distributions, airdrops etc.) for users depositing into their pools.

In the case of Kiln DeFi, user positions are aggregated on a Vault contract and then deposited to the underlying protocol, which makes the Vault be seen as one user by the underlying protocols.

Kiln DeFi is offering multiple additional rewards distribution models:

  1. Claim; Allowing Kiln partners to claim all additional rewards received by their vaults, allowing partners to keep it from them or to redistribute it to users via protocols like .

  2. Reinvest; Allowing Kiln partners to trigger a swap from the reward asset eg. COMP to the vault asset eg. USDC, it will boost the APY of the users you can do this a the frequency you prefer.

  3. Direct user claim; Only available with Morpho, where are have a custom partnership so that users can directly claim morpho tokens.

Note that integrator is not obliged to process these additional-rewards, they can let them accrue on the vault which won't impact its normal behavior.

Here is a list of the protocol distributing additional rewards on top of the base rewards of lending assets.

Protocol
Additional rewards
Kiln DeFi distribution
Estimated Additional Rewards

AAVE v3

more tokens, depending on the strategy

  1. Claim

  2. Reinvest

Compound v3

  1. Claim

  2. Reinvest

Morpho

  1. Direct user claiming

Venus

Not possible as require staking XVS.

Kinetic

  1. Claim

Fluid

Not currently possible to claim or reinvest FLUID additional rewards

Detailed flow for each additional rewards distribution models

Claim and Reinvest (or none) must be specified in the Vault at its initialization in the deployment parameters.

  1. Reinvest: you can emit an instruction to the vault to swap the ERC-20 additional-rewards to the Vault asset (ex: USDC for a USDC AAVE v3 vault) which will create a rewards bump for all users. This is very useful to not expose users to other tokens than the one they deposited, creating a simple and aggregated experience. You can perform this operation every end of month for example that can create an incentive for the user to wait for the "additional rewards boost" before withdrawing and make this product more sticky.

    1. Note that with morpho, rewards can be distirbuted in MORPHO token but also with other type of assets, and each asset type will need to be claimed individually by the user, you need to plan to add this in your UI if you are not using Kiln Widget.

How to perform these transactions?

Using the CLAIM_MANAGER_ROLE wallet, you can call the following function on the vault claimAdditionalRewards(address rewardsAsset, bytes calldata payload)where rewardsAsset is the address of the ERC20 token additional-rewards to process and payload is the calldata the vault should execute depending on the claim or reinvest strategy.

This function will execute the configured vault strategy when you call it. You can either call it one-time (ex: to process an airdrop) or regularly (ex: every month to claim a governance token boost).

+

AAVE emissions are currently paused - 0% Additional token rewards from lending specific assets can be seen on the .

Between 0.5% and 10% depending on the chain, see all .

+ more tokens, depending on the strategy

Between 5% and 10% depending on the selected strategy, see all .

Between 10% and 15% depending on the chain, see all .

Between 1% and 45%, see all .

Between 2-3%, see

Claim: integrator can trigger the claim of the extra-rewards which will make an ERC-20 transfer from the vault to the address specified in the claim transaction. This is useful if you want to redistribute this revenue to the users yourself or with a solution like . Please contact Kiln team if you are interested in this option.

Direct user Claim: Direct user claim is only available with , and is not managed by the vault itself but by the morpho team. No action will be required on your end, Kiln is providing APIs to display theses rewards and know how much can be claimed by your users.

💰
💻
Merkl
Merkl
Morpho
AAVE
Aave "Markets" page
COMP
here
MORPHO
here
XVS
here
rFLR
here
FLUID
here
Hypothetical scenario where vault receives AAVE extra-rewards and integrator applies the CLAIM strategy.
Hypothetical scenario where vault receives AAVE extra-rewards and integrator applies the REINVEST strategy.