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Fixed oracle price scale #252

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merged 6 commits into from
Aug 13, 2023
Merged

Fixed oracle price scale #252

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943c8c9
feat: fixed oracle price scale
MathisGD Aug 9, 2023
6673a9f
Merge branch 'main' into feat/fixed-price-scale
MathisGD Aug 9, 2023
06c3f9a
Merge branch 'main' into feat/fixed-price-scale
MathisGD Aug 13, 2023
39f7341
docs: adapt doc
MathisGD Aug 13, 2023
2e021ed
feat: switch back to 1e36
MathisGD Aug 13, 2023
a8a8949
test: improve constant definition
MathisGD Aug 13, 2023
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17 changes: 10 additions & 7 deletions src/Morpho.sol
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Expand Up @@ -17,6 +17,8 @@ import {FixedPointMathLib, WAD} from "./libraries/FixedPointMathLib.sol";

/// @dev The maximum fee a market can have (25%).
uint256 constant MAX_FEE = 0.25e18;
/// @dev Oracle price scale.
uint256 constant ORACLE_PRICE_SCALE = 1e36;
/// @dev Liquidation cursor.
uint256 constant LIQUIDATION_CURSOR = 0.3e18;
/// @dev Max liquidation incentive factor.
Expand Down Expand Up @@ -325,11 +327,12 @@ contract Morpho is IMorpho {

_accrueInterests(market, id);

(uint256 collateralPrice, uint256 priceScale) = IOracle(market.oracle).price();
uint256 collateralPrice = IOracle(market.oracle).price();

require(!_isHealthy(market, id, borrower, collateralPrice, priceScale), ErrorsLib.HEALTHY_POSITION);
require(!_isHealthy(market, id, borrower, collateralPrice), ErrorsLib.HEALTHY_POSITION);

uint256 repaid = seized.mulDivUp(collateralPrice, priceScale).wDivUp(liquidationIncentiveFactor(market.lltv));
uint256 repaid =
seized.mulDivUp(collateralPrice, ORACLE_PRICE_SCALE).wDivUp(liquidationIncentiveFactor(market.lltv));
uint256 repaidShares = repaid.toSharesDown(totalBorrow[id], totalBorrowShares[id]);

borrowShares[id][borrower] -= repaidShares;
Expand Down Expand Up @@ -455,19 +458,19 @@ contract Morpho is IMorpho {
function _isHealthy(Market memory market, Id id, address user) internal view returns (bool) {
if (borrowShares[id][user] == 0) return true;

(uint256 collateralPrice, uint256 priceScale) = IOracle(market.oracle).price();
uint256 collateralPrice = IOracle(market.oracle).price();

return _isHealthy(market, id, user, collateralPrice, priceScale);
return _isHealthy(market, id, user, collateralPrice);
}

/// @notice Returns whether the position of `user` in the given `market` with the given `collateralPrice` and `priceScale` is healthy.
function _isHealthy(Market memory market, Id id, address user, uint256 collateralPrice, uint256 priceScale)
function _isHealthy(Market memory market, Id id, address user, uint256 collateralPrice)
internal
view
returns (bool)
{
uint256 borrowed = borrowShares[id][user].toAssetsUp(totalBorrow[id], totalBorrowShares[id]);
uint256 maxBorrow = collateral[id][user].mulDivDown(collateralPrice, priceScale).wMulDown(market.lltv);
uint256 maxBorrow = collateral[id][user].mulDivDown(collateralPrice, ORACLE_PRICE_SCALE).wMulDown(market.lltv);

return maxBorrow >= borrowed;
}
Expand Down
4 changes: 2 additions & 2 deletions src/interfaces/IOracle.sol
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Expand Up @@ -6,6 +6,6 @@ pragma solidity >=0.5.0;
/// @custom:contact [email protected]
/// @notice Interface that oracles used by Morpho must implement.
interface IOracle {
/// @notice Returns the price of the collateral asset quoted in the borrowable asset and the price's unit scale.
function price() external view returns (uint256 collateralPrice, uint256 scale);
/// @notice Returns the price of the collateral asset quoted in the borrowable asset, scaled by 1e36.
function price() external view returns (uint256);
}
8 changes: 2 additions & 6 deletions src/mocks/OracleMock.sol
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Expand Up @@ -6,13 +6,9 @@ import {IOracle} from "../interfaces/IOracle.sol";
import {FixedPointMathLib, WAD} from "../libraries/FixedPointMathLib.sol";

contract OracleMock is IOracle {
uint256 internal _price;

function price() external view returns (uint256, uint256) {
return (_price, WAD);
}
uint256 public price;

function setPrice(uint256 newPrice) external {
_price = newPrice;
price = newPrice;
}
}
34 changes: 18 additions & 16 deletions test/forge/Morpho.t.sol
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Expand Up @@ -63,7 +63,7 @@ contract MorphoTest is
morpho.createMarket(market);
vm.stopPrank();

oracle.setPrice(WAD);
oracle.setPrice(ORACLE_PRICE_SCALE);

borrowableToken.approve(address(morpho), type(uint256).max);
collateralToken.approve(address(morpho), type(uint256).max);
Expand All @@ -83,9 +83,9 @@ contract MorphoTest is
/// @dev Calculates the net worth of the given user quoted in borrowable asset.
// TODO: To move to a test utils file later.
function netWorth(address user) internal view returns (uint256) {
(uint256 collateralPrice, uint256 priceScale) = IOracle(market.oracle).price();
uint256 collateralPrice = IOracle(market.oracle).price();

uint256 collateralAssetValue = collateralToken.balanceOf(user).mulDivDown(collateralPrice, priceScale);
uint256 collateralAssetValue = collateralToken.balanceOf(user).mulDivDown(collateralPrice, ORACLE_PRICE_SCALE);
uint256 borrowableAssetValue = borrowableToken.balanceOf(user);

return collateralAssetValue + borrowableAssetValue;
Expand Down Expand Up @@ -603,15 +603,15 @@ contract MorphoTest is
vm.prank(BORROWER);
morpho.supplyCollateral(market, assetsCollateral, BORROWER, hex"");

uint256 maxBorrow = assetsCollateral.wMulDown(collateralPrice).wMulDown(LLTV);
uint256 maxBorrow = assetsCollateral.mulDivDown(collateralPrice, ORACLE_PRICE_SCALE).wMulDown(LLTV);

vm.prank(BORROWER);
if (maxBorrow < assetsBorrowed) vm.expectRevert(bytes(ErrorsLib.INSUFFICIENT_COLLATERAL));
morpho.borrow(market, assetsBorrowed, 0, BORROWER, BORROWER);
}

function testLiquidate(uint256 assetsLent) public {
oracle.setPrice(1e18);
oracle.setPrice(ORACLE_PRICE_SCALE);
assetsLent = bound(assetsLent, 1000, 2 ** 64);

uint256 assetsCollateral = assetsLent;
Expand All @@ -635,7 +635,7 @@ contract MorphoTest is
vm.stopPrank();

// Price change
oracle.setPrice(0.5e18);
oracle.setPrice(ORACLE_PRICE_SCALE / 2);

uint256 liquidatorNetWorthBefore = netWorth(LIQUIDATOR);

Expand All @@ -644,18 +644,19 @@ contract MorphoTest is
morpho.liquidate(market, BORROWER, toSeize, hex"");

uint256 liquidatorNetWorthAfter = netWorth(LIQUIDATOR);
(uint256 collateralPrice, uint256 priceScale) = IOracle(market.oracle).price();
uint256 collateralPrice = IOracle(market.oracle).price();

uint256 expectedRepaid = toSeize.mulDivUp(collateralPrice, priceScale).wDivUp(liquidationIncentiveFactor);
uint256 expectedRepaid =
toSeize.mulDivUp(collateralPrice, ORACLE_PRICE_SCALE).wDivUp(liquidationIncentiveFactor);
uint256 expectedNetWorthAfter =
liquidatorNetWorthBefore + toSeize.mulDivDown(collateralPrice, priceScale) - expectedRepaid;
liquidatorNetWorthBefore + toSeize.mulDivDown(collateralPrice, ORACLE_PRICE_SCALE) - expectedRepaid;
assertEq(liquidatorNetWorthAfter, expectedNetWorthAfter, "LIQUIDATOR net worth");
assertApproxEqAbs(borrowBalance(BORROWER), assetsBorrowed - expectedRepaid, 100, "BORROWER balance");
assertEq(morpho.collateral(id, BORROWER), assetsCollateral - toSeize, "BORROWER collateral");
}

function testRealizeBadDebt(uint256 assetsLent) public {
oracle.setPrice(1e18);
oracle.setPrice(ORACLE_PRICE_SCALE);
assetsLent = bound(assetsLent, 1000, 2 ** 64);

uint256 assetsCollateral = assetsLent;
Expand All @@ -679,7 +680,7 @@ contract MorphoTest is
vm.stopPrank();

// Price change
oracle.setPrice(0.01e18);
oracle.setPrice(ORACLE_PRICE_SCALE / 100);

uint256 liquidatorNetWorthBefore = netWorth(LIQUIDATOR);

Expand All @@ -688,11 +689,12 @@ contract MorphoTest is
morpho.liquidate(market, BORROWER, toSeize, hex"");

uint256 liquidatorNetWorthAfter = netWorth(LIQUIDATOR);
(uint256 collateralPrice, uint256 priceScale) = IOracle(market.oracle).price();
uint256 collateralPrice = IOracle(market.oracle).price();

uint256 expectedRepaid = toSeize.mulDivUp(collateralPrice, priceScale).wDivUp(liquidationIncentiveFactor);
uint256 expectedRepaid =
toSeize.mulDivUp(collateralPrice, ORACLE_PRICE_SCALE).wDivUp(liquidationIncentiveFactor);
uint256 expectedNetWorthAfter =
liquidatorNetWorthBefore + toSeize.mulDivDown(collateralPrice, priceScale) - expectedRepaid;
liquidatorNetWorthBefore + toSeize.mulDivDown(collateralPrice, ORACLE_PRICE_SCALE) - expectedRepaid;
assertEq(liquidatorNetWorthAfter, expectedNetWorthAfter, "LIQUIDATOR net worth");
assertEq(borrowBalance(BORROWER), 0, "BORROWER balance");
assertEq(morpho.collateral(id, BORROWER), 0, "BORROWER collateral");
Expand Down Expand Up @@ -961,7 +963,7 @@ contract MorphoTest is
morpho.supplyCollateral(market, collateralAmount, address(this), hex"");
morpho.borrow(market, assets.wMulDown(LLTV), 0, address(this), address(this));

oracle.setPrice(0.5e18);
oracle.setPrice(ORACLE_PRICE_SCALE / 2);

borrowableToken.setBalance(address(this), assets);
borrowableToken.approve(address(morpho), 0);
Expand All @@ -974,7 +976,7 @@ contract MorphoTest is

function testFlashActions(uint256 assets) public {
assets = bound(assets, 10, 2 ** 64);
oracle.setPrice(1e18);
oracle.setPrice(ORACLE_PRICE_SCALE);
uint256 toBorrow = assets.wMulDown(LLTV);

borrowableToken.setBalance(address(this), 2 * toBorrow);
Expand Down
7 changes: 4 additions & 3 deletions test/hardhat/Morpho.spec.ts
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Expand Up @@ -10,6 +10,7 @@ import { FlashBorrowerMock } from "types/src/mocks/FlashBorrowerMock";

const closePositions = false;
const initBalance = constants.MaxUint256.div(2);
const oraclePriceScale = BigNumber.from("1000000000000000000000000000000000000");
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let seed = 42;
const random = () => {
Expand Down Expand Up @@ -66,7 +67,7 @@ describe("Morpho", () => {

oracle = await OracleMockFactory.deploy();

await oracle.setPrice(BigNumber.WAD);
await oracle.setPrice(oraclePriceScale);

const MorphoFactory = await hre.ethers.getContractFactory("Morpho", admin);

Expand Down Expand Up @@ -173,7 +174,7 @@ describe("Morpho", () => {
await morpho.connect(borrower).supplyCollateral(market, assets, borrower.address, "0x");
await morpho.connect(borrower).borrow(market, borrowedAmount, 0, borrower.address, user.address);

await oracle.setPrice(BigNumber.WAD.div(100));
await oracle.setPrice(oraclePriceScale.div(100));

const seized = closePositions ? assets : assets.div(2);

Expand All @@ -185,7 +186,7 @@ describe("Morpho", () => {
expect(remainingCollateral.isZero(), "did not take the whole collateral when closing the position").to.be.true;
else expect(!remainingCollateral.isZero(), "unexpectedly closed the position").to.be.true;

await oracle.setPrice(BigNumber.WAD);
await oracle.setPrice(oraclePriceScale);
}
});

Expand Down