Added guards for the circuit breaker delta to the HyperdriveFactory

delvtech · May 2, 2024 · 1477719 · 1477719
1 parent 9c80061
commit 1477719
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Showing 19 changed files with 334 additions and 33 deletions.
diff --git a/contracts/src/deployers/HyperdriveDeployerCoordinator.sol b/contracts/src/deployers/HyperdriveDeployerCoordinator.sol
@@ -8,9 +8,6 @@ import { IHyperdriveTargetDeployer } from "../interfaces/IHyperdriveTargetDeploy
 import { VERSION } from "../libraries/Constants.sol";
 import { ONE } from "../libraries/FixedPointMath.sol";
 
-// FIXME: Add the maximumAddLiquidityAPRDelta to `deployAndInitialize`. We need
-//        min and max parameters for this delta.
-//
 /// @author DELV
 /// @title HyperdriveDeployerCoordinator
 /// @notice This Hyperdrive deployer coordinates the process of deploying the
@@ -505,8 +502,7 @@ abstract contract HyperdriveDeployerCoordinator is
         _config.minimumShareReserves = _deployConfig.minimumShareReserves;
         _config.minimumTransactionAmount = _deployConfig
             .minimumTransactionAmount;
-        _config.maximumAddLiquidityAPRDelta = _deployConfig
-            .maximumAddLiquidityAPRDelta;
+        _config.circuitBreakerDelta = _deployConfig.circuitBreakerDelta;
         _config.positionDuration = _deployConfig.positionDuration;
         _config.checkpointDuration = _deployConfig.checkpointDuration;
         _config.timeStretch = _deployConfig.timeStretch;

diff --git a/contracts/src/external/HyperdriveTarget0.sol b/contracts/src/external/HyperdriveTarget0.sol
@@ -298,7 +298,7 @@ abstract contract HyperdriveTarget0 is
                     initialVaultSharePrice: _initialVaultSharePrice,
                     minimumShareReserves: _minimumShareReserves,
                     minimumTransactionAmount: _minimumTransactionAmount,
-                    maximumAddLiquidityAPRDelta: _maximumAddLiquidityAPRDelta,
+                    circuitBreakerDelta: _circuitBreakerDelta,
                     positionDuration: _positionDuration,
                     checkpointDuration: _checkpointDuration,
                     timeStretch: _timeStretch,

diff --git a/contracts/src/factory/HyperdriveFactory.sol b/contracts/src/factory/HyperdriveFactory.sol
@@ -8,9 +8,6 @@ import { FixedPointMath, ONE } from "../libraries/FixedPointMath.sol";
 import { VERSION } from "../libraries/Constants.sol";
 import { HyperdriveMath } from "../libraries/HyperdriveMath.sol";
 
-// FIXME: Add the maximumAddLiquidityAPRDelta to `deployAndInitialize`. We need
-//        min and max parameters for this delta.
-//
 /// @author DELV
 /// @title HyperdriveFactory
 /// @notice Deploys hyperdrive instances and initializes them. It also holds a
@@ -76,6 +73,14 @@ contract HyperdriveFactory is IHyperdriveFactory {
     ///         deployments.
     uint256 public maxPositionDuration;
 
+    /// @notice The minimum circuit breaker delta that can be used by
+    ///         new deployments.
+    uint256 public minCircuitBreakerDelta;
+
+    /// @notice The maximum circuit breaker delta that can be used by
+    ///         new deployments.
+    uint256 public maxCircuitBreakerDelta;
+
     /// @notice The minimum fixed APR that can be used by new deployments.
     uint256 public minFixedAPR;
 
@@ -122,6 +127,12 @@ contract HyperdriveFactory is IHyperdriveFactory {
         /// @dev The maximum position duration that can be used in new
         ///      deployments.
         uint256 maxPositionDuration;
+        /// @dev The minimum circuit breaker delta that can be used in new
+        ///      deployments.
+        uint256 minCircuitBreakerDelta;
+        /// @dev The maximum circuit breaker delta that can be used in new
+        ///      deployments.
+        uint256 maxCircuitBreakerDelta;
         /// @dev The minimum fixed APR that can be used in new deployments.
         uint256 minFixedAPR;
         /// @dev The maximum fixed APR that can be used in new deployments.
@@ -236,6 +247,17 @@ contract HyperdriveFactory is IHyperdriveFactory {
         }
         maxPositionDuration = _factoryConfig.maxPositionDuration;
 
+        // Ensure that the minimum circuit breaker delta is greater than or
+        // equal to the maximum circuit breaker delta.
+        if (
+            _factoryConfig.minCircuitBreakerDelta >
+            _factoryConfig.maxCircuitBreakerDelta
+        ) {
+            revert IHyperdriveFactory.InvalidCircuitBreakerDelta();
+        }
+        minCircuitBreakerDelta = _factoryConfig.minCircuitBreakerDelta;
+        maxCircuitBreakerDelta = _factoryConfig.maxCircuitBreakerDelta;
+
         // Ensure that the minimum fixed APR is less than or equal to the
         // maximum fixed APR.
         if (_factoryConfig.minFixedAPR > _factoryConfig.maxFixedAPR) {
@@ -470,6 +492,40 @@ contract HyperdriveFactory is IHyperdriveFactory {
         emit MinPositionDurationUpdated(_minPositionDuration);
     }
 
+    /// @notice Allows governance to update the maximum circuit breaker delta.
+    /// @param _maxCircuitBreakerDelta The new maximum circuit breaker delta.
+    function updateMaxCircuitBreakerDelta(
+        uint256 _maxCircuitBreakerDelta
+    ) external onlyGovernance {
+        // Ensure that the maximum circuit breaker delta is greater than or
+        // equal to the minimum circuit breaker delta.
+        if (_maxCircuitBreakerDelta < minCircuitBreakerDelta) {
+            revert IHyperdriveFactory.InvalidMaxCircuitBreakerDelta();
+        }
+
+        // Update the maximum circuit breaker delta and emit an event.
+        maxCircuitBreakerDelta = _maxCircuitBreakerDelta;
+        emit MaxCircuitBreakerDeltaUpdated(_maxCircuitBreakerDelta);
+    }
+
+    /// @notice Allows governance to update the minimum circuit breaker delta.
+    /// @param _minCircuitBreakerDelta The new minimum circuit breaker delta.
+    function updateMinCircuitBreakerDelta(
+        uint256 _minCircuitBreakerDelta
+    ) external onlyGovernance {
+        // Ensure that the minimum position duration is greater than or equal
+        // to the maximum checkpoint duration and is a multiple of the
+        // checkpoint duration resolution. Also ensure that the minimum position
+        // duration is less than or equal to the maximum position duration.
+        if (_minCircuitBreakerDelta > maxCircuitBreakerDelta) {
+            revert IHyperdriveFactory.InvalidMinCircuitBreakerDelta();
+        }
+
+        // Update the minimum circuit breaker delta and emit an event.
+        minCircuitBreakerDelta = _minCircuitBreakerDelta;
+        emit MinCircuitBreakerDeltaUpdated(_minCircuitBreakerDelta);
+    }
+
     /// @notice Allows governance to update the maximum fixed APR.
     /// @param _maxFixedAPR The new maximum fixed APR.
     function updateMaxFixedAPR(uint256 _maxFixedAPR) external onlyGovernance {
@@ -902,6 +958,15 @@ contract HyperdriveFactory is IHyperdriveFactory {
             revert IHyperdriveFactory.InvalidPositionDuration();
         }
 
+        // Ensure that the specified circuit breaker delta is within the minimum
+        // and maximum circuit breaker deltas.
+        if (
+            _config.circuitBreakerDelta < minCircuitBreakerDelta ||
+            _config.circuitBreakerDelta > maxCircuitBreakerDelta
+        ) {
+            revert IHyperdriveFactory.InvalidCircuitBreakerDelta();
+        }
+
         // Ensure that the specified fees are within the minimum and maximum
         // fees. The flat fee is annualized so that it is consistent across all
         // term lengths.

diff --git a/contracts/src/interfaces/IHyperdrive.sol b/contracts/src/interfaces/IHyperdrive.sol
@@ -93,7 +93,7 @@ interface IHyperdrive is
         /// @dev The maximum delta between the last checkpoint's weighted spot
         ///      APR and the current spot APR for an LP to add liquidity. This
         ///      protects LPs from sandwich attacks.
-        uint256 maximumAddLiquidityAPRDelta;
+        uint256 circuitBreakerDelta;
         /// @dev The duration of a position prior to maturity.
         uint256 positionDuration;
         /// @dev The duration of a checkpoint.
@@ -130,7 +130,7 @@ interface IHyperdrive is
         /// @dev The maximum delta between the last checkpoint's weighted spot
         ///      APR and the current spot APR for an LP to add liquidity. This
         ///      protects LPs from sandwich attacks.
-        uint256 maximumAddLiquidityAPRDelta;
+        uint256 circuitBreakerDelta;
         /// @dev The duration of a position prior to maturity.
         uint256 positionDuration;
         /// @dev The duration of a checkpoint.

diff --git a/contracts/src/interfaces/IHyperdriveFactory.sol b/contracts/src/interfaces/IHyperdriveFactory.sol
@@ -62,6 +62,12 @@ interface IHyperdriveFactory {
     /// @notice Emitted when the minimum position duration is updated.
     event MinPositionDurationUpdated(uint256 newMinPositionDuration);
 
+    /// @notice Emitted when the maximum circuit breaker delta is updated.
+    event MaxCircuitBreakerDeltaUpdated(uint256 newMaxCircuitBreakerDelta);
+
+    /// @notice Emitted when the minimum circuit breaker delta is updated.
+    event MinCircuitBreakerDeltaUpdated(uint256 newMinCircuitBreakerDelta);
+
     /// @notice Emitted when the maximum fixed APR is updated.
     event MaxFixedAPRUpdated(uint256 newMaxFixedAPR);
 
@@ -168,6 +174,21 @@ interface IHyperdriveFactory {
     ///         maximum position durations.
     error InvalidPositionDuration();
 
+    /// @notice Thrown when governance attempts to set the maximum circuit
+    ///         breaker delta to a value that is less than the minimum
+    ///         circuit breaker delta.
+    error InvalidMaxCircuitBreakerDelta();
+
+    /// @notice Thrown when governance attempts to set the minimum circuit
+    ///         breaker delta to a value that is greater than the maximum
+    ///         circuit breaker delta.
+    error InvalidMinCircuitBreakerDelta();
+
+    /// @notice Thrown when the circuit breaker delta passed to
+    ///         `deployAndInitialize` doesn't fall within the range specified by
+    ///         the minimum and maximum circuit breaker delta.
+    error InvalidCircuitBreakerDelta();
+
     /// @notice Thrown when governance attempts to set the maximum fixed APR to
     ///         a value that is smaller than the minimum fixed APR.
     error InvalidMaxFixedAPR();

diff --git a/contracts/src/internal/HyperdriveLP.sol b/contracts/src/internal/HyperdriveLP.sol
@@ -27,9 +27,6 @@ abstract contract HyperdriveLP is
     using SafeCast for int256;
     using SafeCast for uint256;
 
-    // FIXME: Make sure this checkpoint's and the previous checkpoint's weighted
-    //        spot prices are set to non-zero values.
-    //
     /// @dev Allows the first LP to initialize the market with a target APR.
     /// @param _contribution The amount of capital to supply. The units of this
     ///        quantity are either base or vault shares, depending on the value
@@ -146,8 +143,6 @@ abstract contract HyperdriveLP is
         return lpShares;
     }
 
-    // FIXME: Add circuit breakers.
-    //
     /// @dev Allows LPs to supply liquidity for LP shares.
     /// @param _contribution The amount of capital to supply. The units of this
     ///        quantity are either base or vault shares, depending on the value
@@ -215,9 +210,9 @@ abstract contract HyperdriveLP is
                 _positionDuration
             );
             if (
-                apr > weightedSpotAPR + _maximumAddLiquidityAPRDelta ||
-                (weightedSpotAPR > _maximumAddLiquidityAPRDelta &&
-                    apr < weightedSpotAPR - _maximumAddLiquidityAPRDelta)
+                apr > weightedSpotAPR + _circuitBreakerDelta ||
+                (weightedSpotAPR > _circuitBreakerDelta &&
+                    apr < weightedSpotAPR - _circuitBreakerDelta)
             ) {
                 revert IHyperdrive.CircuitBreakerTriggered();
             }

diff --git a/contracts/src/internal/HyperdriveStorage.sol b/contracts/src/internal/HyperdriveStorage.sol
@@ -66,7 +66,7 @@ abstract contract HyperdriveStorage is ReentrancyGuard {
     /// @dev The maximum delta between the last checkpoint's weighted spot APR
     ///      and the current spot APR for an LP to add liquidity. This protects
     ///      LPs from sandwich attacks.
-    uint256 internal immutable _maximumAddLiquidityAPRDelta;
+    uint256 internal immutable _circuitBreakerDelta;
 
     /// @dev The state of the market. This includes the reserves, buffers, and
     ///      other data used to price trades and maintain solvency.
@@ -159,7 +159,7 @@ abstract contract HyperdriveStorage is ReentrancyGuard {
         // spot APR and the weighted spot APR from the last checkpoint for an
         // LP to add liquidity. This mitigates the possibility of LP sandwich
         // attacks by making them economically infeasible to pull off.
-        _maximumAddLiquidityAPRDelta = _config.maximumAddLiquidityAPRDelta;
+        _circuitBreakerDelta = _config.circuitBreakerDelta;
 
         // Initialize the time configurations. There must be at least one
         // checkpoint per term to avoid having a position duration of zero.

diff --git a/test/instances/erc4626/ERC4626Hyperdrive.t.sol b/test/instances/erc4626/ERC4626Hyperdrive.t.sol
@@ -87,6 +87,10 @@ contract ERC4626HyperdriveTest is HyperdriveTest {
                 maxCheckpointDuration: 1 days,
                 minPositionDuration: 7 days,
                 maxPositionDuration: 10 * 365 days,
+                minCircuitBreakerDelta: 0.15e18,
+                // NOTE: This is a high max circuit breaker delta to ensure that
+                // trading during tests isn't impeded by the circuit breaker.
+                maxCircuitBreakerDelta: 2e18,
                 minFixedAPR: 0.001e18,
                 maxFixedAPR: 0.5e18,
                 minTimeStretchAPR: 0.005e18,
@@ -141,7 +145,7 @@ contract ERC4626HyperdriveTest is HyperdriveTest {
             initialVaultSharePrice: ONE,
             minimumShareReserves: ONE,
             minimumTransactionAmount: 0.001e18,
-            maximumAddLiquidityAPRDelta: 1e18,
+            circuitBreakerDelta: 1e18,
             positionDuration: 365 days,
             checkpointDuration: 1 days,
             timeStretch: ONE.divDown(22.186877016851916266e18),
@@ -325,7 +329,7 @@ contract ERC4626HyperdriveTest is HyperdriveTest {
                 linkerCodeHash: factory.linkerCodeHash(),
                 minimumShareReserves: ONE,
                 minimumTransactionAmount: 0.001e18,
-                maximumAddLiquidityAPRDelta: 2e18,
+                circuitBreakerDelta: 2e18,
                 positionDuration: 365 days,
                 checkpointDuration: 1 days,
                 timeStretch: 0,
@@ -447,7 +451,7 @@ contract ERC4626HyperdriveTest is HyperdriveTest {
                 linkerCodeHash: factory.linkerCodeHash(),
                 minimumShareReserves: ONE,
                 minimumTransactionAmount: 0.001e18,
-                maximumAddLiquidityAPRDelta: 2e18,
+                circuitBreakerDelta: 2e18,
                 positionDuration: 365 days,
                 checkpointDuration: 1 days,
                 timeStretch: 0,

diff --git a/test/instances/erc4626/ERC4626Validation.t.sol b/test/instances/erc4626/ERC4626Validation.t.sol
@@ -64,6 +64,10 @@ abstract contract ERC4626ValidationTest is HyperdriveTest {
                 maxCheckpointDuration: 1 days,
                 minPositionDuration: 7 days,
                 maxPositionDuration: 10 * 365 days,
+                minCircuitBreakerDelta: 0.15e18,
+                // NOTE: This is a high max circuit breaker delta to ensure that
+                // trading during tests isn't impeded by the circuit breaker.
+                maxCircuitBreakerDelta: 2e18,
                 minFixedAPR: 0.001e18,
                 maxFixedAPR: 0.5e18,
                 minTimeStretchAPR: 0.005e18,

diff --git a/test/instances/erc4626/Sweep.t.sol b/test/instances/erc4626/Sweep.t.sol
@@ -58,7 +58,7 @@ contract SweepTest is BaseTest, IHyperdriveEvents {
             initialVaultSharePrice: ONE,
             minimumShareReserves: ONE,
             minimumTransactionAmount: 0.001e18,
-            maximumAddLiquidityAPRDelta: 1e18,
+            circuitBreakerDelta: 1e18,
             positionDuration: 365 days,
             checkpointDuration: 1 days,
             timeStretch: HyperdriveMath.calculateTimeStretch(0.01e18, 365 days),

diff --git a/test/instances/erc4626/UsdcERC4626.t.sol b/test/instances/erc4626/UsdcERC4626.t.sol
@@ -81,6 +81,10 @@ contract UsdcERC4626 is ERC4626ValidationTest {
                 maxCheckpointDuration: 1 days,
                 minPositionDuration: 7 days,
                 maxPositionDuration: 10 * 365 days,
+                minCircuitBreakerDelta: 0.15e18,
+                // NOTE: This is a high max circuit breaker delta to ensure that
+                // trading during tests isn't impeded by the circuit breaker.
+                maxCircuitBreakerDelta: 2e18,
                 minFixedAPR: 0.001e18,
                 maxFixedAPR: 0.5e18,
                 minTimeStretchAPR: 0.005e18,

diff --git a/test/instances/steth/Sweep.t.sol b/test/instances/steth/Sweep.t.sol
@@ -58,7 +58,7 @@ contract SweepTest is BaseTest, IHyperdriveEvents {
             initialVaultSharePrice: ONE,
             minimumShareReserves: 1e15,
             minimumTransactionAmount: 1e15,
-            maximumAddLiquidityAPRDelta: 1e18,
+            circuitBreakerDelta: 1e18,
             positionDuration: 365 days,
             checkpointDuration: 1 days,
             timeStretch: HyperdriveMath.calculateTimeStretch(0.01e18, 365 days),

diff --git a/test/integrations/deployers/ERC4626DeployerCoordinator.t.sol b/test/integrations/deployers/ERC4626DeployerCoordinator.t.sol
@@ -71,6 +71,8 @@ contract ERC4626DeployerCoordinatorTest is DeployerCoordinatorTest {
                     maxCheckpointDuration: 1 days,
                     minPositionDuration: 7 days,
                     maxPositionDuration: 10 * 365 days,
+                    minCircuitBreakerDelta: 0.15e18,
+                    maxCircuitBreakerDelta: 0.6e18,
                     minFixedAPR: 0.001e18,
                     maxFixedAPR: 0.5e18,
                     minTimeStretchAPR: 0.005e18,

diff --git a/test/integrations/deployers/RethDeployerCoordinator.t.sol b/test/integrations/deployers/RethDeployerCoordinator.t.sol
@@ -63,6 +63,8 @@ contract RethDeployerCoordinatorTest is DeployerCoordinatorTest {
                     maxCheckpointDuration: 1 days,
                     minPositionDuration: 7 days,
                     maxPositionDuration: 10 * 365 days,
+                    minCircuitBreakerDelta: 0.15e18,
+                    maxCircuitBreakerDelta: 0.6e18,
                     minFixedAPR: 0.001e18,
                     maxFixedAPR: 0.5e18,
                     minTimeStretchAPR: 0.005e18,

diff --git a/test/integrations/deployers/StethDeployerCoordinator.t.sol b/test/integrations/deployers/StethDeployerCoordinator.t.sol
@@ -63,6 +63,8 @@ contract StethDeployerCoordinatorTest is DeployerCoordinatorTest {
                     maxCheckpointDuration: 1 days,
                     minPositionDuration: 7 days,
                     maxPositionDuration: 10 * 365 days,
+                    minCircuitBreakerDelta: 0.15e18,
+                    maxCircuitBreakerDelta: 0.6e18,
                     minFixedAPR: 0.001e18,
                     maxFixedAPR: 0.5e18,
                     minTimeStretchAPR: 0.005e18,