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. Caps are checked only when assets are allocated; see how caps are enforced.
• 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.