Checklist to Validate Vault V2 Configuration

This checklist covers the setup of a Morpho Vault V2 using a single MorphoMarketV1AdapterV2 to curate one or several variable rate markets.

Vault V2 Setup Checklist

• Create a new Morpho Vault V2 using the VaultV2Factory.
• Set the core roles: As Owner, assign the Curator and Sentinel(s).
• Set the Morpho Adapter Registry: As Curator, submit and execute the timelocked proposal to set the adapterRegistry to the official Morpho registry.
• Abdicate setAdapterRegistry: As Curator, renounce the ability to change the adapter registry to lock in the official registry permanently; verify the registry value before abdicating.
• Abdicate Gates: As Curator, if needed, abdicate the three critical gates to remove the ability to restrict deposits and withdrawals (More on Gate Abdication here).
• Deploy the MorphoMarketV1AdapterV2.
• Configure and verify adapter-level timelocks before enablement or funding: Follow the adapter hardening procedure, including the adapter's own burnShares timelock, unsafe pending-action revocation, and onchain read-back. Vault timelocks do not configure adapter timelocks.
• Enable the adapter: As Curator, submit and execute the timelocked proposals to link the adapter to your vault.
• Appoint the Allocator(s): As Curator, grant the Allocator role to your allocator contract or multisig via a timelocked proposal.
• Set the risk caps: As Curator, submit and execute the timelocked proposals to set absoluteCap and relativeCap on the vault for each variable rate market you want to include.
• Set the liquidityAdapter: As Allocator, designate the underlying variable rate market (within the MorphoMarketV1AdapterV2) as the default market for handling deposits and withdrawals (usually, a highly liquid market).
• Set the dead deposit for the vault itself (tutorial).
• Set the dead deposit for each listed market (tutorial).
• Harden the vault's timelocks: After the initial setup is complete, increase the timelocks for sensitive functions to a production-safe value.
• Configure your reallocation, monitoring and liquidation bots: Ensure your Allocator logic is in place to allocate the vault's assets.