MorphoMarketV1AdapterV2

Adapter contract for integrating Morpho Blue markets with Morpho Vault V2

Overview

The MorphoMarketV1AdapterV2 contract enables Morpho Vault V2 to allocate assets to Morpho Blue markets (also known as Morpho Market V1). This adapter implements a timelock system for critical operations and supports multiple markets with the Adaptive Curve IRM.

Morpho Market V1 is also known as Morpho Blue. This adapter must only be used with markets that:

• Are protected against inflation attacks with an initial supply
• Use the Adaptive Curve IRM
• Have properly configured timelocks before being added to the vault

• Donated shares and burnt shares are lost forever
• Rounding error losses on supply/withdraw are realizable
• If expectedSupplyAssets reverts for any market, the vault cannot accrue interest
• Too many markets may cause expensive interactions or DOS due to gas limits

Contract details

License: GPL-2.0-or-later
Solidity version: 0.8.28

State variables

Immutable variables

factory

address public immutable factory

The address of the factory contract that deployed this adapter.

parentVault

address public immutable parentVault

The address of the parent Morpho Vault V2 that uses this adapter.

asset

address public immutable asset

The underlying asset token address.

morpho

address public immutable morpho

The address of the Morpho Blue protocol contract.

adapterId

bytes32 public immutable adapterId

Unique identifier for this adapter instance, computed as keccak256(abi.encode("this", address(this))).

adaptiveCurveIrm

address public immutable adaptiveCurveIrm

The address of the Adaptive Curve IRM. Only markets using this IRM can be used with this adapter.

Storage variables

timelock

mapping(bytes4 selector => uint256) public timelock

Maps function selectors to their required timelock durations in seconds.

abdicated

mapping(bytes4 selector => bool) public abdicated

Maps function selectors to whether their timelock has been permanently disabled.

executableAt

mapping(bytes data => uint256) public executableAt

Maps pending operation data to the timestamp when it becomes executable.

skimRecipient

address public skimRecipient

The address that receives skimmed tokens (rewards).

marketIds

bytes32[] public marketIds

Array of market IDs that currently have non-zero allocations.

Markets are removed from marketIds when allocation reaches zero, but the adapter may still hold shares.

supplyShares

mapping(bytes32 marketId => uint256) public supplyShares

Maps market IDs to the adapter’s supply shares in each market.

Constructor

constructor(address _parentVault, address _morpho, address _adaptiveCurveIrm)

Initializes the adapter with the parent vault and Morpho Blue protocol.

_parentVault · address

The address of the parent Morpho Vault V2

_morpho · address

The address of the Morpho Blue protocol

_adaptiveCurveIrm · address

The address of the Adaptive Curve IRM

View functions

marketIdsLength

function marketIdsLength() external view returns (uint256)

Returns the number of markets with non-zero allocations.

length · uint256

The length of the marketIds array

expectedSupplyAssets

function expectedSupplyAssets(bytes32 marketId) public view returns (uint256)

Returns the expected supply assets for a market based on internal shares accounting.

marketId · bytes32

The ID of the Morpho Blue market

assets · uint256

The expected supply assets in the market

allocation

function allocation(MarketParams memory marketParams) public view returns (uint256)

Returns the vault’s allocation for a specific market.

marketParams · MarketParams

The market parameters struct

allocation · uint256

The current allocation amount

ids

function ids(MarketParams memory marketParams) public view returns (bytes32[] memory)

Returns the allocation IDs for a market.

marketParams · MarketParams

The market parameters struct

ids · bytes32[]

Array containing:

• ids[0]: adapter ID
• ids[1]: collateral token ID
• ids[2]: market-specific ID

realAssets

function realAssets() external view returns (uint256)

Returns the total real assets held across all markets.

assets · uint256

The sum of expected supply assets across all markets

Timelock functions

submit

function submit(bytes calldata data) external

Submits an operation for timelock. Only callable by the vault curator.

data · bytes

The encoded function call data to be timelocked

Will revert if the timelock value would overflow when added to the current block timestamp.

revoke

function revoke(bytes calldata data) external

Revokes a pending timelocked operation. Callable by curator or sentinels.

data · bytes

The encoded function call data to revoke

increaseTimelock

function increaseTimelock(bytes4 selector, uint256 newDuration) external

Increases the timelock duration for a function selector. This function itself requires a timelock.

selector · bytes4

The function selector to modify

newDuration · uint256

The new timelock duration in seconds (must be greater than current)

This function requires great caution as it can irreversibly disable submit for a selector. Existing pending operations can still execute at their initial executableAt time.

decreaseTimelock

function decreaseTimelock(bytes4 selector, uint256 newDuration) external

Decreases the timelock duration for a function selector. This function itself requires a timelock.

selector · bytes4

The function selector to modify

newDuration · uint256

The new timelock duration in seconds (must be less than current)

abdicate

function abdicate(bytes4 selector) external

Permanently disables timelock for a function selector. This function itself requires a timelock.

selector · bytes4

The function selector to abdicate

This irreversibly disables submit for the selector. Existing pending operations cannot be executed after abdication.

Curator functions

setSkimRecipient

function setSkimRecipient(address newSkimRecipient) external

Sets the recipient address for skimmed tokens. Requires timelock.

newSkimRecipient · address

The new skim recipient address

burnShares

function burnShares(bytes32 marketId) external

Burns all supply shares for a specific market. Requires timelock.

marketId · bytes32

The market ID to burn shares for

After burning shares, deallocate 0 from the vault to update the allocation. It’s recommended to set market caps to zero before burning to avoid further losses.

Other functions

skim

function skim(address token) external

Skims the adapter’s balance of a token and sends it to the skim recipient. Only callable by skim recipient.

token · address

The token address to skim

allocate

function allocate(
    bytes memory data,
    uint256 assets,
    bytes4,
    address
) external returns (bytes32[] memory, int256)

Allocates assets to a Morpho Blue market. Only callable by parent vault.

data · bytes

ABI-encoded MarketParams struct

assets · uint256

Amount of assets to allocate

ids · bytes32[]

The allocation IDs

change · int256

The change in allocation amount

deallocate

function deallocate(
    bytes memory data,
    uint256 assets,
    bytes4,
    address
) external returns (bytes32[] memory, int256)

Deallocates assets from a Morpho Blue market. Only callable by parent vault.

data · bytes

ABI-encoded MarketParams struct

assets · uint256

Amount of assets to deallocate

ids · bytes32[]

The allocation IDs

change · int256

The change in allocation amount

Events

Submit

event Submit(bytes4 indexed selector, bytes data, uint256 executableAt)

Emitted when an operation is submitted for timelock.

Revoke

event Revoke(address indexed sender, bytes4 indexed selector, bytes data)

Emitted when a pending operation is revoked.

Accept

event Accept(bytes4 indexed selector, bytes data)

Emitted when a timelocked operation is executed.

Abdicate

event Abdicate(bytes4 indexed selector)

Emitted when timelock for a selector is permanently disabled.

IncreaseTimelock

event IncreaseTimelock(bytes4 indexed selector, uint256 newDuration)

Emitted when a timelock duration is increased.

DecreaseTimelock

event DecreaseTimelock(bytes4 indexed selector, uint256 newDuration)

Emitted when a timelock duration is decreased.

SetSkimRecipient

event SetSkimRecipient(address indexed newSkimRecipient)

Emitted when the skim recipient is updated.

Skim

event Skim(address indexed token, uint256 assets)

Emitted when tokens are skimmed from the adapter.

BurnShares

event BurnShares(bytes32 indexed marketId, uint256 supplyShares)

Emitted when supply shares are burned for a market.

Allocate

event Allocate(bytes32 indexed marketId, uint256 newAllocation, uint256 mintedShares)

Emitted when assets are allocated to a market.

Deallocate

event Deallocate(bytes32 indexed marketId, uint256 newAllocation, uint256 burnedShares)

Emitted when assets are deallocated from a market.

Errors

Abdicated

error Abdicated()

Thrown when attempting to execute a function whose timelock has been abdicated.

AutomaticallyTimelocked

error AutomaticallyTimelocked()

Thrown when attempting to modify the timelock for decreaseTimelock itself.

DataAlreadyPending

error DataAlreadyPending()

Thrown when submitting data that is already pending execution.

DataNotTimelocked

error DataNotTimelocked()

Thrown when attempting to execute or revoke data that has not been submitted.

IrmMismatch

error IrmMismatch()

Thrown when a market does not use the required Adaptive Curve IRM.

LoanAssetMismatch

error LoanAssetMismatch()

Thrown when a market’s loan token does not match the adapter’s asset.

SharePriceAboveOne

error SharePriceAboveOne()

Thrown when minted shares are less than supplied assets (share price > 1).

TimelockNotDecreasing

error TimelockNotDecreasing()

Thrown when the new timelock duration is not less than the current duration.

TimelockNotExpired

error TimelockNotExpired()

Thrown when attempting to execute an operation before its timelock has expired.

TimelockNotIncreasing

error TimelockNotIncreasing()

Thrown when the new timelock duration is not greater than the current duration.

Unauthorized

error Unauthorized()

Thrown when the caller is not authorized to perform the operation.