Principal

LP pool: You open with stablecoins, but the position holds two tokens split at the pool's current price; price moves change what your principal is worth

Exchange earn: You deposit one stablecoin; the amount doesn't change with prices

Yield

LP pool: Fees move with trading volume and incentives are shared across the pool's liquidity, so the APY changes all the time; once the price leaves your range you earn neither

Exchange earn: The exchange publishes the APY, usually with a cap and an end date

Payouts

LP pool: Fees build up in the position and can be collected any time; Merkl settles incentives about every 8 hours and you claim them yourself

Exchange earn: The exchange credits rewards to your account automatically

Custody

LP pool: In your own wallet and on-chain contracts, no lock-up, withdraw any time; stablecoins in, stablecoins out — when you exit we swap back to stablecoins at the prices at that moment

Exchange earn: Held by the exchange; deposits and withdrawals follow its rules, which may include lock-ups or redemption periods