MorphoCompounderStrategy

Git Source

Inherits: BaseHealthCheck

Title: MorphoCompounderStrategy

Author: Golem Foundation

Yield-donating strategy that compounds rewards from a Morpho vault

Deposits assets into a Morpho compounder vault (e.g., Morpho Steakhouse) to earn yield YIELD FLOW:

1. Deposits assets into Morpho compounder vault
2. Vault compounds yield automatically via Morpho markets
3. On report, profit is minted as shares to donation address META-VAULT INFLATION ISSUE:

• When compounderVault is a meta-vault (e.g., Morpho → SteakHouse), maxDeposit chains through multiple vaults
• If underlying vaults have duplicate markets in supply queues, maxDeposit may overstate actual capacity
• This can cause deposits to temporarily revert but is not a critical issue LOSS HANDLING:
• Accepts 100% loss on withdrawals to prevent revert cascades
• MultistrategyVault enforces actual loss limits via updateDebt

Notes:

• security-contact: [email protected]

• security: Morpho vault convertToAssets must be manipulation-resistant

Quick Start - What Matters Most

Morpho's compounder adapter follows the .6 ERC-4626 safety pattern: exact approvals, zero-share minted protection, previewRedeem accounting, and preserving type(uint256).max capacity sentinels.

State Variables

compounderVault

Address of the Morpho compounder vault this strategy deposits into

Must implement ITokenizedStrategy and use the same asset as this strategy

address public immutable compounderVault

Functions

constructor

Initializes the Morpho compounder strategy

Validates asset matches Morpho vault's asset. Approval is issued per-deposit inside _deployFunds and explicitly cleared after the compounder vault call, so no standing allowance against the external (upgradeable) compounder vault exists between calls.

constructor(
    address _compounderVault,
    address _asset,
    string memory _name,
    string memory _symbol,
    address _management,
    address _keeper,
    address _emergencyAdmin,
    address _donationAddress,
    bool _enableBurning,
    address _tokenizedStrategyAddress
)
    BaseHealthCheck(
        _asset,
        _name,
        _symbol,
        _management,
        _keeper,
        _emergencyAdmin,
        _donationAddress,
        _enableBurning,
        _tokenizedStrategyAddress
    );

Parameters

Name	Type	Description
_compounderVault	address	Address of the Morpho compounder vault to deposit into
_asset	address	Address of the underlying asset (must match compounder vault's asset)
_name	string	Strategy display name (e.g., "Octant Morpho USDC Strategy")
_symbol	string	Strategy symbol (e.g., "osMorphoUSDC")
_management	address	Address with management permissions
_keeper	address	Address authorized to call report() and tend()
_emergencyAdmin	address	Address authorized for emergency shutdown
_donationAddress	address	Address receiving minted profit shares
_enableBurning	bool	True to enable loss protection via share burning
_tokenizedStrategyAddress	address	Address of TokenizedStrategy implementation contract

availableDepositLimit

Returns maximum additional assets that can be deposited

Queries compounder vault's maxDeposit and subtracts idle balance META-VAULT INFLATION: When compounderVault is Morpho Steakhouse or similar meta-vault, maxDeposit may be inflated if underlying SteakHouse USDC has duplicate markets in its supplyQueue. Deposits may temporarily revert.

function availableDepositLimit(
    address /*_owner*/
)
    public
    view
    override
    returns (uint256);

Returns

Name	Type	Description
<none>	uint256	limit Maximum additional deposit amount in asset base units

availableWithdrawLimit

Returns maximum assets withdrawable without expected loss

Sums idle balance and compounder vault's maxWithdraw

function availableWithdrawLimit(
    address /*_owner*/
)
    public
    view
    override
    returns (uint256);

Returns

Name	Type	Description
<none>	uint256	limit Maximum withdrawal amount in asset base units

_deployFunds

Deposits idle assets into Morpho compounder vault

function _deployFunds(uint256 _amount) internal override;

Parameters

Name	Type	Description
_amount	uint256	Amount of assets to deploy in asset base units

_freeFunds

Withdraws assets from Morpho compounder vault

Note: security: Target withdraw returns shares burned, not assets received. TokenizedStrategy._withdraw measures the post-call asset balance and applies the caller's max-loss limit.

function _freeFunds(uint256 _amount) internal override;

Parameters

Name	Type	Description
_amount	uint256	Amount of assets to withdraw in asset base units

_emergencyWithdraw

Emergency withdrawal after strategy shutdown

function _emergencyWithdraw(uint256 _amount) internal override;

Parameters

Name	Type	Description
_amount	uint256	Amount of assets to withdraw in asset base units

_harvestAndReport

Reports current total assets under management

function _harvestAndReport() internal view override returns (uint256 _totalAssets);

Returns

Name	Type	Description
_totalAssets	uint256	Sum of compounder vault value and idle assets in asset base units