post-cantina

.github/workflows/foundry.yml

@@ -39,7 +39,7 @@ jobs:
         uses: foundry-rs/foundry-toolchain@v1
 
       - name: Run Forge tests in ${{ matrix.type }} mode
-        run: forge test -vvv
+        run: yarn test:forge -vvv
         env:
           FOUNDRY_FUZZ_RUNS: ${{ matrix.fuzz-runs }}
           FOUNDRY_FUZZ_MAX_TEST_REJECTS: ${{ matrix.max-test-rejects }}

certora/confs/AccrueInterest.conf

@@ -4,9 +4,11 @@
     ],
     "verify": "MorphoHarness:certora/specs/AccrueInterest.spec",
     "prover_args": [
+        "-depth 3",
         "-smt_hashingScheme plaininjectivity",
         "-mediumTimeout 30"
     ],
     "rule_sanity": "basic",
+    "server": "production",
     "msg": "Morpho Blue Accrue Interest"
 }

certora/confs/AssetsAccounting.conf

@@ -4,5 +4,6 @@
     ],
     "verify": "MorphoHarness:certora/specs/AssetsAccounting.spec",
     "rule_sanity": "basic",
+    "server": "production",
     "msg": "Morpho Blue Assets Accounting"
 }

certora/confs/ConsistentState.conf

@@ -4,5 +4,6 @@
     ],
     "verify": "MorphoHarness:certora/specs/ConsistentState.spec",
     "rule_sanity": "basic",
+    "server": "production",
     "msg": "Morpho Blue Consistent State"
 }

certora/confs/ExactMath.conf

@@ -8,5 +8,6 @@
         "-smt_hashingScheme plaininjectivity",
         "-mediumTimeout 30"
     ],
+    "server": "production",
     "msg": "Morpho Blue Exact Math"
 }

certora/confs/Health.conf

@@ -8,5 +8,6 @@
     "prover_args": [
         "-smt_hashingScheme plaininjectivity"
     ],
+    "server": "production",
     "msg": "Morpho Blue Health"
 }

certora/confs/LibSummary.conf

@@ -4,5 +4,6 @@
     ],
     "verify": "MorphoHarness:certora/specs/LibSummary.spec",
     "rule_sanity": "basic",
+    "server": "production",
     "msg": "Morpho Blue Lib Summary"
 }

certora/confs/Liveness.conf

@@ -4,5 +4,6 @@
     ],
     "verify": "MorphoInternalAccess:certora/specs/Liveness.spec",
     "rule_sanity": "basic",
+    "server": "production",
     "msg": "Morpho Blue Liveness"
 }

certora/confs/RatioMath.conf

@@ -9,5 +9,6 @@
         "-mediumTimeout 30",
         "-timeout 3600"
     ],
+    "server": "production",
     "msg": "Morpho Blue Ratio Math"
 }

certora/confs/Reentrancy.conf

@@ -7,5 +7,6 @@
     "prover_args": [
         "-enableStorageSplitting false"
     ],
+    "server": "production",
     "msg": "Morpho Blue Reentrancy"
 }

certora/confs/Reverts.conf

@@ -4,5 +4,6 @@
     ],
     "verify": "MorphoHarness:certora/specs/Reverts.spec",
     "rule_sanity": "basic",
+    "server": "production",
     "msg": "Morpho Blue Reverts"
 }

certora/confs/Transfer.conf

@@ -7,5 +7,6 @@
     ],
     "verify": "TransferHarness:certora/specs/Transfer.spec",
     "rule_sanity": "basic",
+    "server": "production",
     "msg": "Morpho Blue Transfer"
 }

certora/specs/Reverts.spec

@@ -103,14 +103,14 @@ rule setFeeRecipientRevertCondition(env e, address newFeeRecipient) {
     assert lastReverted <=> e.msg.value != 0 || e.msg.sender != oldOwner || newFeeRecipient == oldFeeRecipient;
 }
 
-// Check the revert condition for the createMarket function.
-rule createMarketRevertCondition(env e, MorphoHarness.MarketParams marketParams) {
+// Check that createMarket reverts when its input are not validated.
+rule createMarketInputValidation(env e, MorphoHarness.MarketParams marketParams) {
     MorphoHarness.Id id = libId(marketParams);
     bool irmEnabled = isIrmEnabled(marketParams.irm);
     bool lltvEnabled = isLltvEnabled(marketParams.lltv);
     bool wasCreated = isCreated(id);
     createMarket@withrevert(e, marketParams);
-    assert lastReverted <=> e.msg.value != 0 || !irmEnabled || !lltvEnabled || wasCreated;
+    assert e.msg.value != 0 || !irmEnabled || !lltvEnabled || wasCreated => lastReverted;
 }
 
 // Check that supply reverts when its input are not validated.

foundry.toml

@@ -2,7 +2,7 @@
 names = true
 sizes = true
 via-ir = true
-optimizer_runs = 4294967295
+optimizer_runs = 999999 # Etherscan does not support verifying contracts with more optimization runs.
 
 [profile.default.invariant]
 runs = 8

src/Morpho.sol

@@ -158,6 +158,9 @@ contract Morpho is IMorphoStaticTyping {
         idToMarketParams[id] = marketParams;
 
         emit EventsLib.CreateMarket(id, marketParams);
+
+        // Call to initialize the IRM in case it is stateful.
+        if (marketParams.irm != address(0)) IIrm(marketParams.irm).borrowRate(marketParams, market[id]);
     }
 
     /* SUPPLY MANAGEMENT */
@@ -354,28 +357,29 @@ contract Morpho is IMorphoStaticTyping {
 
         _accrueInterest(marketParams, id);
 
-        uint256 collateralPrice = IOracle(marketParams.oracle).price();
+        {
+            uint256 collateralPrice = IOracle(marketParams.oracle).price();
 
-        require(!_isHealthy(marketParams, id, borrower, collateralPrice), ErrorsLib.HEALTHY_POSITION);
+            require(!_isHealthy(marketParams, id, borrower, collateralPrice), ErrorsLib.HEALTHY_POSITION);
 
-        uint256 repaidAssets;
-        {
             // The liquidation incentive factor is min(maxLiquidationIncentiveFactor, 1/(1 - cursor*(1 - lltv))).
             uint256 liquidationIncentiveFactor = UtilsLib.min(
                 MAX_LIQUIDATION_INCENTIVE_FACTOR,
                 WAD.wDivDown(WAD - LIQUIDATION_CURSOR.wMulDown(WAD - marketParams.lltv))
             );
 
             if (seizedAssets > 0) {
-                repaidAssets =
-                    seizedAssets.mulDivUp(collateralPrice, ORACLE_PRICE_SCALE).wDivUp(liquidationIncentiveFactor);
-                repaidShares = repaidAssets.toSharesDown(market[id].totalBorrowAssets, market[id].totalBorrowShares);
+                uint256 seizedAssetsQuoted = seizedAssets.mulDivUp(collateralPrice, ORACLE_PRICE_SCALE);
+
+                repaidShares = seizedAssetsQuoted.wDivUp(liquidationIncentiveFactor).toSharesUp(
+                    market[id].totalBorrowAssets, market[id].totalBorrowShares
+                );
             } else {
-                repaidAssets = repaidShares.toAssetsUp(market[id].totalBorrowAssets, market[id].totalBorrowShares);
-                seizedAssets =
-                    repaidAssets.wMulDown(liquidationIncentiveFactor).mulDivDown(ORACLE_PRICE_SCALE, collateralPrice);
+                seizedAssets = repaidShares.toAssetsDown(market[id].totalBorrowAssets, market[id].totalBorrowShares)
+                    .wMulDown(liquidationIncentiveFactor).mulDivDown(ORACLE_PRICE_SCALE, collateralPrice);
             }
         }
+        uint256 repaidAssets = repaidShares.toAssetsUp(market[id].totalBorrowAssets, market[id].totalBorrowShares);
 
         position[id][borrower].borrowShares -= repaidShares.toUint128();
         market[id].totalBorrowShares -= repaidShares.toUint128();
@@ -384,23 +388,26 @@ contract Morpho is IMorphoStaticTyping {
         position[id][borrower].collateral -= seizedAssets.toUint128();
 
         uint256 badDebtShares;
+        uint256 badDebtAssets;
         if (position[id][borrower].collateral == 0) {
             badDebtShares = position[id][borrower].borrowShares;
-            uint256 badDebt = UtilsLib.min(
+            badDebtAssets = UtilsLib.min(
                 market[id].totalBorrowAssets,
                 badDebtShares.toAssetsUp(market[id].totalBorrowAssets, market[id].totalBorrowShares)
             );
 
-            market[id].totalBorrowAssets -= badDebt.toUint128();
-            market[id].totalSupplyAssets -= badDebt.toUint128();
+            market[id].totalBorrowAssets -= badDebtAssets.toUint128();
+            market[id].totalSupplyAssets -= badDebtAssets.toUint128();
             market[id].totalBorrowShares -= badDebtShares.toUint128();
             position[id][borrower].borrowShares = 0;
         }
 
-        IERC20(marketParams.collateralToken).safeTransfer(msg.sender, seizedAssets);
-
         // `repaidAssets` may be greater than `totalBorrowAssets` by 1.
-        emit EventsLib.Liquidate(id, msg.sender, borrower, repaidAssets, repaidShares, seizedAssets, badDebtShares);
+        emit EventsLib.Liquidate(
+            id, msg.sender, borrower, repaidAssets, repaidShares, seizedAssets, badDebtAssets, badDebtShares
+        );
+
+        IERC20(marketParams.collateralToken).safeTransfer(msg.sender, seizedAssets);
 
         if (data.length > 0) IMorphoLiquidateCallback(msg.sender).onMorphoLiquidate(repaidAssets, data);
 
@@ -413,10 +420,12 @@ contract Morpho is IMorphoStaticTyping {
 
     /// @inheritdoc IMorphoBase
     function flashLoan(address token, uint256 assets, bytes calldata data) external {
-        IERC20(token).safeTransfer(msg.sender, assets);
+        require(assets != 0, ErrorsLib.ZERO_ASSETS);
 
         emit EventsLib.FlashLoan(msg.sender, token, assets);
 
+        IERC20(token).safeTransfer(msg.sender, assets);
+
         IMorphoFlashLoanCallback(msg.sender).onMorphoFlashLoan(assets, data);
 
         IERC20(token).safeTransferFrom(msg.sender, address(this), assets);
@@ -426,18 +435,21 @@ contract Morpho is IMorphoStaticTyping {
 
     /// @inheritdoc IMorphoBase
     function setAuthorization(address authorized, bool newIsAuthorized) external {
+        require(newIsAuthorized != isAuthorized[msg.sender][authorized], ErrorsLib.ALREADY_SET);
+
         isAuthorized[msg.sender][authorized] = newIsAuthorized;
 
         emit EventsLib.SetAuthorization(msg.sender, msg.sender, authorized, newIsAuthorized);
     }
 
     /// @inheritdoc IMorphoBase
     function setAuthorizationWithSig(Authorization memory authorization, Signature calldata signature) external {
+        /// Do not check whether authorization is already set because the nonce increment is a desired side effect.
         require(block.timestamp <= authorization.deadline, ErrorsLib.SIGNATURE_EXPIRED);
         require(authorization.nonce == nonce[authorization.authorizer]++, ErrorsLib.INVALID_NONCE);
 
         bytes32 hashStruct = keccak256(abi.encode(AUTHORIZATION_TYPEHASH, authorization));
-        bytes32 digest = keccak256(abi.encodePacked("\x19\x01", DOMAIN_SEPARATOR, hashStruct));
+        bytes32 digest = keccak256(bytes.concat("\x19\x01", DOMAIN_SEPARATOR, hashStruct));
         address signatory = ecrecover(digest, signature.v, signature.r, signature.s);
 
         require(signatory != address(0) && authorization.authorizer == signatory, ErrorsLib.INVALID_SIGNATURE);
@@ -470,25 +482,27 @@ contract Morpho is IMorphoStaticTyping {
     /// @dev Assumes that the inputs `marketParams` and `id` match.
     function _accrueInterest(MarketParams memory marketParams, Id id) internal {
         uint256 elapsed = block.timestamp - market[id].lastUpdate;
-
         if (elapsed == 0) return;
 
-        uint256 borrowRate = IIrm(marketParams.irm).borrowRate(marketParams, market[id]);
-        uint256 interest = market[id].totalBorrowAssets.wMulDown(borrowRate.wTaylorCompounded(elapsed));
-        market[id].totalBorrowAssets += interest.toUint128();
-        market[id].totalSupplyAssets += interest.toUint128();
-
-        uint256 feeShares;
-        if (market[id].fee != 0) {
-            uint256 feeAmount = interest.wMulDown(market[id].fee);
-            // The fee amount is subtracted from the total supply in this calculation to compensate for the fact
-            // that total supply is already increased by the full interest (including the fee amount).
-            feeShares = feeAmount.toSharesDown(market[id].totalSupplyAssets - feeAmount, market[id].totalSupplyShares);
-            position[id][feeRecipient].supplyShares += feeShares;
-            market[id].totalSupplyShares += feeShares.toUint128();
-        }
+        if (marketParams.irm != address(0)) {
+            uint256 borrowRate = IIrm(marketParams.irm).borrowRate(marketParams, market[id]);
+            uint256 interest = market[id].totalBorrowAssets.wMulDown(borrowRate.wTaylorCompounded(elapsed));
+            market[id].totalBorrowAssets += interest.toUint128();
+            market[id].totalSupplyAssets += interest.toUint128();
+
+            uint256 feeShares;
+            if (market[id].fee != 0) {
+                uint256 feeAmount = interest.wMulDown(market[id].fee);
+                // The fee amount is subtracted from the total supply in this calculation to compensate for the fact
+                // that total supply is already increased by the full interest (including the fee amount).
+                feeShares =
+                    feeAmount.toSharesDown(market[id].totalSupplyAssets - feeAmount, market[id].totalSupplyShares);
+                position[id][feeRecipient].supplyShares += feeShares;
+                market[id].totalSupplyShares += feeShares.toUint128();
+            }
 
-        emit EventsLib.AccrueInterest(id, borrowRate, interest, feeShares);
+            emit EventsLib.AccrueInterest(id, borrowRate, interest, feeShares);
+        }
 
         // Safe "unchecked" cast.
         market[id].lastUpdate = uint128(block.timestamp);

src/interfaces/IIrm.sol

@@ -8,11 +8,12 @@ import {MarketParams, Market} from "./IMorpho.sol";
 /// @custom:contact [email protected]
 /// @notice Interface that Interest Rate Models (IRMs) used by Morpho must implement.
 interface IIrm {
-    /// @notice Returns the borrow rate of the market `marketParams`.
+    /// @notice Returns the borrow rate per second (scaled by WAD) of the market `marketParams`.
     /// @dev Assumes that `market` corresponds to `marketParams`.
     function borrowRate(MarketParams memory marketParams, Market memory market) external returns (uint256);
 
-    /// @notice Returns the borrow rate of the market `marketParams` without modifying any storage.
+    /// @notice Returns the borrow rate per second (scaled by WAD) of the market `marketParams` without modifying any
+    /// storage.
     /// @dev Assumes that `market` corresponds to `marketParams`.
     function borrowRateView(MarketParams memory marketParams, Market memory market) external view returns (uint256);
 }

src/interfaces/IMorpho.sol

@@ -70,7 +70,7 @@ interface IMorphoBase {
     /// @notice Whether the `lltv` is enabled.
     function isLltvEnabled(uint256 lltv) external view returns (bool);
 
-    /// @notice Whether `authorized` is authorized to modify `authorizer`'s positions.
+    /// @notice Whether `authorized` is authorized to modify `authorizer`'s position on all markets.
     /// @dev Anyone is authorized to modify their own positions, regardless of this variable.
     function isAuthorized(address authorizer, address authorized) external view returns (bool);
 
@@ -91,6 +91,7 @@ interface IMorphoBase {
     function enableLltv(uint256 lltv) external;
 
     /// @notice Sets the `newFee` for the given market `marketParams`.
+    /// @param newFee The new fee, scaled by WAD.
     /// @dev Warning: The recipient can be the zero address.
     function setFee(MarketParams memory marketParams, uint256 newFee) external;
 
@@ -129,12 +130,12 @@ interface IMorphoBase {
 
     /// @notice Supplies `assets` or `shares` on behalf of `onBehalf`, optionally calling back the caller's
     /// `onMorphoSupply` function with the given `data`.
-    /// @dev Either `assets` or `shares` should be zero. Most usecases should rely on `assets` as an input so the caller
-    /// is guaranteed to have `assets` tokens pulled from their balance, but the possibility to mint a specific amount
-    /// of shares is given for full compatibility and precision.
-    /// @dev If the supply of a market gets depleted, the supply share price instantly resets to
-    /// `VIRTUAL_ASSETS`:`VIRTUAL_SHARES`.
+    /// @dev Either `assets` or `shares` should be zero. Most use cases should rely on `assets` as an input so the
+    /// caller is guaranteed to have `assets` tokens pulled from their balance, but the possibility to mint a specific
+    /// amount of shares is given for full compatibility and precision.
     /// @dev Supplying a large amount can revert for overflow.
+    /// @dev Supplying an amount of shares may lead to supply more or fewer assets than expected due to slippage.
+    /// Consider using the `assets` parameter to avoid this.
     /// @param marketParams The market to supply assets to.
     /// @param assets The amount of assets to supply.
     /// @param shares The amount of shares to mint.
@@ -150,7 +151,7 @@ interface IMorphoBase {
         bytes memory data
     ) external returns (uint256 assetsSupplied, uint256 sharesSupplied);
 
-    /// @notice Withdraws `assets` or `shares` on behalf of `onBehalf` to `receiver`.
+    /// @notice Withdraws `assets` or `shares` on behalf of `onBehalf` and sends the assets to `receiver`.
     /// @dev Either `assets` or `shares` should be zero. To withdraw max, pass the `shares`'s balance of `onBehalf`.
     /// @dev `msg.sender` must be authorized to manage `onBehalf`'s positions.
     /// @dev Withdrawing an amount corresponding to more shares than supplied will revert for underflow.
@@ -171,14 +172,14 @@ interface IMorphoBase {
         address receiver
     ) external returns (uint256 assetsWithdrawn, uint256 sharesWithdrawn);
 
-    /// @notice Borrows `assets` or `shares` on behalf of `onBehalf` to `receiver`.
-    /// @dev Either `assets` or `shares` should be zero. Most usecases should rely on `assets` as an input so the caller
-    /// is guaranteed to borrow `assets` of tokens, but the possibility to mint a specific amount of shares is given for
-    /// full compatibility and precision.
-    /// @dev If the borrow of a market gets depleted, the borrow share price instantly resets to
-    /// `VIRTUAL_ASSETS`:`VIRTUAL_SHARES`.
+    /// @notice Borrows `assets` or `shares` on behalf of `onBehalf` and sends the assets to `receiver`.
+    /// @dev Either `assets` or `shares` should be zero. Most use cases should rely on `assets` as an input so the
+    /// caller is guaranteed to borrow `assets` of tokens, but the possibility to mint a specific amount of shares is
+    /// given for full compatibility and precision.
     /// @dev `msg.sender` must be authorized to manage `onBehalf`'s positions.
     /// @dev Borrowing a large amount can revert for overflow.
+    /// @dev Borrowing an amount of shares may lead to borrow fewer assets than expected due to slippage.
+    /// Consider using the `assets` parameter to avoid this.
     /// @param marketParams The market to borrow assets from.
     /// @param assets The amount of assets to borrow.
     /// @param shares The amount of shares to mint.
@@ -200,6 +201,7 @@ interface IMorphoBase {
     /// @dev Repaying an amount corresponding to more shares than borrowed will revert for underflow.
     /// @dev It is advised to use the `shares` input when repaying the full position to avoid reverts due to conversion
     /// roundings between shares and assets.
+    /// @dev An attacker can front-run a repay with a small repay making the transaction revert for underflow.
     /// @param marketParams The market to repay assets to.
     /// @param assets The amount of assets to repay.
     /// @param shares The amount of shares to burn.
@@ -226,7 +228,7 @@ interface IMorphoBase {
     function supplyCollateral(MarketParams memory marketParams, uint256 assets, address onBehalf, bytes memory data)
         external;
 
-    /// @notice Withdraws `assets` of collateral on behalf of `onBehalf` to `receiver`.
+    /// @notice Withdraws `assets` of collateral on behalf of `onBehalf` and sends the assets to `receiver`.
     /// @dev `msg.sender` must be authorized to manage `onBehalf`'s positions.
     /// @dev Withdrawing an amount corresponding to more collateral than supplied will revert for underflow.
     /// @param marketParams The market to withdraw collateral from.
@@ -242,6 +244,7 @@ interface IMorphoBase {
     /// @dev Either `seizedAssets` or `repaidShares` should be zero.
     /// @dev Seizing more than the collateral balance will underflow and revert without any error message.
     /// @dev Repaying more than the borrow balance will underflow and revert without any error message.
+    /// @dev An attacker can front-run a liquidation with a small repay making the transaction revert for underflow.
     /// @param marketParams The market of the position.
     /// @param borrower The owner of the position.
     /// @param seizedAssets The amount of collateral to seize.

src/libraries/ErrorsLib.sol

@@ -27,6 +27,9 @@ library ErrorsLib {
     /// @notice Thrown when the market is already created.
     string internal constant MARKET_ALREADY_CREATED = "market already created";
 
+    /// @notice Thrown when a token to transfer doesn't have code.
+    string internal constant NO_CODE = "no code";
+
     /// @notice Thrown when the market is not created.
     string internal constant MARKET_NOT_CREATED = "market not created";