MorphoMarketV1AdapterV2

Code

v2.0 repository

Introduction

MorphoMarketV1AdapterV2 is an adapter that connects a Morpho Vault V2 to a variable rate market. It manages supply positions across multiple markets and implements its own timelock system using the same submit/execute pattern as Morpho Vault V2, with its own distinct set of timelocked functions.

This adapter must be used with variable rate markets that are protected against inflation attacks with an initial supply. See OpenZeppelin ERC4626 inflation attack and Inflation Front-Running Attack Protection section here.

This adapter can only be used for markets with the AdaptiveCurveIRM.

Markets are removed from marketIds when the allocation is zero, but this does not mean that the adapter has zero shares on that market.

Function Selectors

Timelocked Functions and Selectors

Function Name	Selector
`increaseTimelock`	`0x47966291`
`decreaseTimelock`	`0x5c1a1a4f`
`abdicate`	`0xb2e32848`
`setSkimRecipient`	`0x2b30997b`
`burnShares`	`0x3b2de5ac`

Immutables

Name	Type	Description
`factory`	address	The factory contract that deployed this adapter.
`parentVault`	address	The Morpho Vault V2 that this adapter belongs to.
`asset`	address	The underlying asset of the parent vault (must match the loan token of all managed markets).
`morpho`	address	The Morpho (Morpho Blue) contract address.
`adapterId`	bytes32	Unique identifier for this adapter instance, computed as `keccak256(abi.encode("this", address(this)))`.
`adaptiveCurveIrm`	address	The AdaptiveCurveIRM address. All managed markets must use this IRM.

Timelock System

The timelock system works identically to the one in Morpho Vault V2. The curator must submit a timelocked action, wait for the timelock to expire, then anyone can call the function directly.

`submit`

function submit(bytes calldata data) external

Submits a timelocked action for later execution.

Callable by: Curator

Parameters:

Name	Type	Description
`data`	bytes	The ABI-encoded function call data.

`revoke`

function revoke(bytes calldata data) external

Cancels a pending timelocked action.

Callable by: Curator, Sentinel

Parameters:

Name	Type	Description
`data`	bytes	The ABI-encoded function call data to revoke.

`increaseTimelock`

function increaseTimelock(bytes4 selector, uint256 newDuration) external

Increases the timelock duration for a specific function selector.

Callable by: Curator (timelocked - submit first, then anyone can execute after delay)

Selector: 0x47966291

Parameters:

Name	Type	Description
`selector`	bytes4	The function selector whose timelock to increase.
`newDuration`	uint256	The new timelock duration in seconds. Must be greater than or equal to the current duration.

`decreaseTimelock`

function decreaseTimelock(bytes4 selector, uint256 newDuration) external

Decreases the timelock duration for a specific function selector. This action's own timelock equals the current timelock of the function being decreased.

Callable by: Curator (timelocked - submit first, then anyone can execute after delay)

Selector: 0x5c1a1a4f

Parameters:

Name	Type	Description
`selector`	bytes4	The function selector whose timelock to decrease.
`newDuration`	uint256	The new timelock duration in seconds. Must be less than or equal to the current duration.

`abdicate`

function abdicate(bytes4 selector) external

Irreversibly disables the ability to execute a specific type of action.

This action is irreversible. Existing pending operations submitted before abdicating cannot be executed.

Callable by: Curator (timelocked - submit first, then anyone can execute after delay)

Selector: 0xb2e32848

Parameters:

Name	Type	Description
`selector`	bytes4	The function selector to permanently abdicate.

Curator Functions

`setSkimRecipient`

function setSkimRecipient(address newSkimRecipient) external

Sets the address that receives skimmed token balances (e.g., reward tokens earned by the adapter).

Callable by: Curator (timelocked - submit first, then anyone can execute after delay)

Selector: 0x2b30997b

Parameters:

Name	Type	Description
`newSkimRecipient`	address	The new skim recipient address.

`burnShares`

function burnShares(bytes32 marketId) external

Burns the adapter's tracked supply shares for a market, setting supplyShares[marketId] to zero.

Burnt shares are lost forever and cannot be recovered.

When submitting burnShares, it is recommended to set the caps of the market to zero first to avoid losing more assets.

After burning shares, call deallocate on the parent vault with this adapter's address, the market's data encoding, and 0 assets to sync the vault's recorded allocation.

Callable by: Curator (timelocked - submit first, then anyone can execute after delay)

Selector: 0x3b2de5ac

Parameters:

Name	Type	Description
`marketId`	bytes32	The market ID whose shares to burn.

Other Functions

`skim`

function skim(address token) external

Transfers the adapter's entire balance of token to skimRecipient.

Callable by: skimRecipient

If skimRecipient is not set (address(0)), this function will always revert.

Parameters:

Name	Type	Description
`token`	address	The token to skim.

`allocate`

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

Supplies assets into the specified variable rate market.

Callable by: parentVault

Parameters:

Name	Type	Description
`data`	bytes	ABI-encoded `MarketParams` struct identifying the target market.
`assets`	uint256	The amount of assets to supply.

The bytes4 and address parameters are part of the shared adapter interface but unused by this implementation.

Return Values:

Name	Type	Description
`ids`	bytes32[]	The allocation IDs affected by this operation.
`delta`	int256	The change in allocation (new allocation minus old allocation). Positive for `allocate`, negative for `deallocate`.

`deallocate`

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

Withdraws assets from the specified variable rate market back to the parent vault.

Callable by: parentVault

Parameters:

Name	Type	Description
`data`	bytes	ABI-encoded `MarketParams` struct identifying the target market.
`assets`	uint256	The amount of assets to withdraw.

The bytes4 and address parameters are part of the shared adapter interface but unused by this implementation.

Return Values:

Name	Type	Description
`ids`	bytes32[]	The allocation IDs affected by this operation.
`delta`	int256	The change in allocation (new allocation minus old allocation). Positive for `allocate`, negative for `deallocate`.

View Functions

`realAssets`

function realAssets() external view returns (uint256)

Returns the total expected supply assets across all managed markets, used by the parent vault during interest accrual.

Return Values:

Name	Type	Description
`assets`	uint256	The total assets across all markets in `marketIds`.

`expectedSupplyAssets`

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

Returns the expected supply assets for a specific market, accounting for the adapter's internal share balance.

Parameters:

Name	Type	Description
`marketId`	bytes32	The market ID to query.

Return Values:

Name	Type	Description
`assets`	uint256	The expected supply assets for the given market.

`allocation`

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

Returns the vault's current allocation for this market, as recorded in the parent vault.

Parameters:

Name	Type	Description
`marketParams`	MarketParams	The market parameters struct.

Return Values:

Name	Type	Description
`assets`	uint256	The current allocation amount in the parent vault.

`ids`

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

Returns the three allocation IDs used by this adapter for a given market.

Parameters:

Name	Type	Description
`marketParams`	MarketParams	The market parameters struct.

Return Values:

Name	Type	Description
`ids_`	bytes32[]	Array of 3 IDs: `adapterId`, `keccak256(abi.encode("collateralToken", collateralToken))`, and `keccak256(abi.encode("this/marketParams", address(this), marketParams))`.

`marketIdsLength`

function marketIdsLength() external view returns (uint256)

Returns the number of markets currently tracked by this adapter. Use this as the upper bound when iterating over marketIds.

Return Values:

Name	Type	Description
`length`	uint256	The number of market IDs in `marketIds`.

`marketIds`

bytes32[] public marketIds

Returns the market ID at the given position in the list of markets with non-zero allocation currently managed by this adapter.

Parameters:

Name	Type	Description
`index`	uint256	The position in the array. Must be less than `marketIdsLength()`.

Return Values:

Name	Type	Description
`marketId`	bytes32	The market ID at the given index.

`timelock`

mapping(bytes4 selector => uint256) public timelock

Returns the timelock duration (in seconds) for a given function selector.

Parameters:

Name	Type	Description
`selector`	bytes4	The function selector to query.

Return Values:

Name	Type	Description
`duration`	uint256	The timelock duration in seconds for the given selector.

`abdicated`

mapping(bytes4 selector => bool) public abdicated

Returns whether the curator has permanently abdicated the ability to execute a specific action.

Parameters:

Name	Type	Description
`selector`	bytes4	The function selector to query.

Return Values:

Name	Type	Description
`isAbdicated`	bool	`true` if the curator has abdicated the given selector, `false` otherwise.

`executableAt`

function executableAt(bytes memory data) external view returns (uint256)

Returns the Unix timestamp (seconds) at which a submitted timelocked action becomes executable.

Parameters:

Name	Type	Description
`data`	bytes	The ABI-encoded function call data of the pending action.

Return Values:

Value	Meaning
`0`	No pending action (never submitted, already executed, or revoked)
`<= block.timestamp`	Action is currently executable (timelock has elapsed)
`> block.timestamp`	Not yet executable - equals `submissionTimestamp + timelock[selector]`

`supplyShares`

mapping(bytes32 marketId => uint256) public supplyShares

Returns the adapter's tracked supply shares for a given market.

Parameters:

Name	Type	Description
`marketId`	bytes32	The market ID to query.

Return Values:

Name	Type	Description
`shares`	uint256	The adapter's tracked supply shares for the given market.

`skimRecipient`

address public skimRecipient

Returns the address that receives skimmed token balances.

Morpho Vaults V2

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