In the protocol, for the most of the time, market and vault's state vars are updated by deltas, not by direct updation. This delta-change operation does not work well when market and vault connection is changed. It doesn't recognize delta by broken connection. As a result, when a vault is unlinked from a market, market's delegated credit usd will remain the same. Vauilt's state vars (marketRealizedDebtUsd etc) won't reflect broken connection, either.
The owner can add or remove vaults and markets connection by calling this external function.
While this approach works for existing connections and new one, it doesn't work well for removed connections.
Removed connections are counted out from delta calculation, so market's totalCreditDelegation won't be deducted even after a vault is disconnected.
Same thing will happen for vaults as well. i.e. Their state vars won't reflect market disconnection change.
pragma solidity 0.8.25;
import { CreditDelegationBranch } from "@zaros/market-making/branches/CreditDelegationBranch.sol";
import { VaultRouterBranch } from "@zaros/market-making/branches/VaultRouterBranch.sol";
import { MarketMakingEngineConfigurationBranch } from
"@zaros/market-making/branches/MarketMakingEngineConfigurationBranch.sol";
import { Vault } from "@zaros/market-making/leaves/Vault.sol";
import { Market } from "@zaros/market-making/leaves/Market.sol";
import { CreditDelegation } from "@zaros/market-making/leaves/CreditDelegation.sol";
import { MarketMakingEngineConfiguration } from "@zaros/market-making/leaves/MarketMakingEngineConfiguration.sol";
import { LiveMarkets } from "@zaros/market-making/leaves/LiveMarkets.sol";
import { Collateral } from "@zaros/market-making/leaves/Collateral.sol";
import { UD60x18, ud60x18 } from "@prb-math/UD60x18.sol";
import { SD59x18, sd59x18 } from "@prb-math/SD59x18.sol";
import { Constants } from "@zaros/utils/Constants.sol";
import { SafeCast } from "@openzeppelin/utils/math/SafeCast.sol";
import { EnumerableMap } from "@openzeppelin/utils/structs/EnumerableMap.sol";
import { EnumerableSet } from "@openzeppelin/utils/structs/EnumerableSet.sol";
import { IERC4626 } from "@openzeppelin/token/ERC20/extensions/ERC4626.sol";
import { Errors } from "@zaros/utils/Errors.sol";
import "forge-std/Test.sol";
uint256 constant DEFAULT_DECIMAL = 18;
contract MockVault {
function totalAssets() external pure returns (uint256) {
return 1000 * (10 ** DEFAULT_DECIMAL);
}
}
contract MockPriceAdapter {
function getPrice() external pure returns (uint256) {
return 10 ** DEFAULT_DECIMAL;
}
}
contract MockEngine {
function getUnrealizedDebt(uint128) external pure returns (int256) {
return 0;
}
}
contract MarketMakingConfigurationBranchTest is
CreditDelegationBranch,
VaultRouterBranch,
MarketMakingEngineConfigurationBranch,
Test
{
using Vault for Vault.Data;
using Market for Market.Data;
using CreditDelegation for CreditDelegation.Data;
using Collateral for Collateral.Data;
using SafeCast for uint256;
using EnumerableSet for EnumerableSet.UintSet;
using EnumerableMap for EnumerableMap.AddressToUintMap;
using LiveMarkets for LiveMarkets.Data;
using MarketMakingEngineConfiguration for MarketMakingEngineConfiguration.Data;
uint128 marketId = 1;
address asset = vm.addr(1);
address usdc = vm.addr(2);
uint256 collateralAssetAmount = 100 * (10 ** DEFAULT_DECIMAL);
uint256 usdcAmount = 200 * (10 ** DEFAULT_DECIMAL);
uint256 creditRatio = 0.8e18;
uint256[] vaultIds = new uint128[](2);
function setUp() external {
MockVault indexToken = new MockVault();
MockPriceAdapter priceAdapter = new MockPriceAdapter();
MockEngine mockEngine = new MockEngine();
MarketMakingEngineConfiguration.Data storage configuration = MarketMakingEngineConfiguration.load();
configuration.usdc = usdc;
Market.Data storage market = Market.load(marketId);
market.engine = address(mockEngine);
uint256[] memory marketIds = new uint256[](1);
marketIds[0] = uint256(marketId);
vaultIds[0] = uint256(1);
vaultIds[1] = uint256(2);
market.id = marketId;
LiveMarkets.Data storage liveMarkets = LiveMarkets.load();
liveMarkets.addMarket(marketId);
Collateral.Data storage collateral = Collateral.load(asset);
collateral.priceAdapter = address(priceAdapter);
collateral.creditRatio = creditRatio;
for (uint128 vaultId = 1; vaultId <= 2; vaultId++) {
Vault.Data storage vault = Vault.load(vaultId);
vault.id = vaultId;
vault.indexToken = address(indexToken);
vault.collateral.decimals = uint8(DEFAULT_DECIMAL);
vault.collateral.priceAdapter = address(priceAdapter);
vault.collateral.creditRatio = creditRatio;
}
uint256[] memory _vaultIds = vaultIds;
_connectVaultsAndMarkets(_vaultIds);
}
function testInconsistencyAfterDisconnection() external {
Market.Data storage market = Market.load(marketId);
_recalculateVaultsCreditCapacity();
market.depositCredit(asset, ud60x18(collateralAssetAmount));
market.settleCreditDeposit(usdc, ud60x18(100e18));
_recalculateVaultsCreditCapacity();
assertEq(market.getConnectedVaultsIds().length, 2);
console.log("\nConnected Vault IDs: [1, 2]\n");
_logMarketState();
uint256[] memory _vaultIds = new uint256[](1);
_vaultIds[0] = 1;
_connectVaultsAndMarkets(_vaultIds);
market.receiveWethReward(vm.addr(3), ud60x18(0), ud60x18(1e18));
assertEq(market.getConnectedVaultsIds().length, 1);
_recalculateVaultsCreditCapacity();
console.log("\nConnected Vault IDs: [1]\n");
_logMarketState();
}
function _connectVaultsAndMarkets(uint256[] memory _vaultIds) internal {
uint256[] memory marketIds = new uint256[](1);
marketIds[0] = uint256(marketId);
vm.startPrank(address(0));
MarketMakingConfigurationBranchTest(address(this)).connectVaultsAndMarkets(marketIds, _vaultIds);
vm.stopPrank();
}
function _recalculateVaultsCreditCapacity() internal {
MarketMakingConfigurationBranchTest(address(this)).updateMarketCreditDelegations(marketId);
}
function _logMarketState() internal {
Market.Data storage market = Market.load(marketId);
UD60x18 creditDepositsValueUsdX18 = market.getCreditDepositsValueUsd();
SD59x18 marketTotalDebtUsdX18 = market.getTotalDebt();
UD60x18 delegatedCreditUsdX18 = market.getTotalDelegatedCreditUsd();
SD59x18 creditCapacityUsdX18 = Market.getCreditCapacityUsd(delegatedCreditUsdX18, marketTotalDebtUsdX18);
emit log_named_decimal_uint("creditDepositsValueUsd", creditDepositsValueUsdX18.unwrap(), DEFAULT_DECIMAL);
emit log_named_decimal_int("marketTotalDebtUsd", marketTotalDebtUsdX18.unwrap(), DEFAULT_DECIMAL);
emit log_named_decimal_uint("delegatedCreditUsd", delegatedCreditUsdX18.unwrap(), DEFAULT_DECIMAL);
emit log_named_decimal_int("creditCapacityUsd", creditCapacityUsdX18.unwrap(), DEFAULT_DECIMAL);
}
}
Once a vault-market connection is unlinked, the protocol will be in inconsistent state.
This inconsistency will affect usd token swap rate, vault index token swap rate and ultimately, will lead to user fund loss and protocol's reputation damage.
