BullLeverageRouter

Git Source

Inherits: LeverageRouterBase

Title: BullLeverageRouter

Leverage router for plDXY-BULL positions via Morpho Blue.

Uses Morpho flash loans + Splitter minting to acquire plDXY-BULL, then deposits as Morpho collateral. Close operation uses a single plDXY-BEAR flash mint for simplicity and gas efficiency. Uses Morpho’s fee-free flash loans for capital efficiency.

STATE MACHINE - OPEN LEVERAGE: ┌─────────────────────────────────────────────────────────────────────────┐ │ openLeverage(principal, leverage) │ │ 1. Pull USDC from user │ │ 2. Flash loan additional USDC from Morpho (fee-free) │ │ └──► onMorphoFlashLoan(OP_OPEN) │ │ └──► _executeOpen() │ │ 1. Mint plDXY-BEAR + plDXY-BULL pairs via Splitter │ │ 2. Sell plDXY-BEAR on Curve → USDC │ │ 3. Stake plDXY-BULL → splDXY-BULL │ │ 4. Deposit splDXY-BULL to Morpho (user’s collateral) │ │ 5. Borrow USDC from Morpho to cover flash repayment │ │ 6. Emit LeverageOpened event │ └─────────────────────────────────────────────────────────────────────────┘

STATE MACHINE - CLOSE LEVERAGE (Single Flash Mint): ┌─────────────────────────────────────────────────────────────────────────┐ │ closeLeverage(debtToRepay, collateralToWithdraw) │ │ 1. Flash mint plDXY-BEAR (collateral + extra for debt repayment) │ │ └──► onFlashLoan(OP_CLOSE) │ │ └──► _executeClose() │ │ 1. Sell extra plDXY-BEAR on Curve → USDC │ │ 2. Repay user’s Morpho debt with USDC from sale │ │ 3. Withdraw user’s splDXY-BULL from Morpho │ │ 4. Unstake splDXY-BULL → plDXY-BULL │ │ 5. Redeem plDXY-BEAR + plDXY-BULL → USDC │ │ 6. Buy plDXY-BEAR on Curve to repay flash mint │ │ 7. Transfer remaining USDC to user │ │ 8. Emit LeverageClosed event │ └─────────────────────────────────────────────────────────────────────────┘

State Variables

SPLITTER

SyntheticSplitter for minting/burning token pairs.

ISyntheticSplitter public immutable SPLITTER

PLDXY_BULL

plDXY-BULL token (collateral for bull positions).

IERC20 public immutable PLDXY_BULL

STAKED_PLDXY_BULL

StakedToken vault for plDXY-BULL (used as Morpho collateral).

IERC4626 public immutable STAKED_PLDXY_BULL

CAP

Protocol CAP price (8 decimals, oracle format).

uint256 public immutable CAP

EXCHANGE_RATE_BUFFER_BPS

Buffer for exchange rate drift between previewRedeem and redeem (1%).

Protects against DoS attacks via yield donation front-running.

uint256 public constant EXCHANGE_RATE_BUFFER_BPS = 100

Functions

constructor

Deploys BullLeverageRouter with Morpho market configuration.

constructor(
    address _morpho,
    address _splitter,
    address _curvePool,
    address _usdc,
    address _plDxyBear,
    address _plDxyBull,
    address _stakedPlDxyBull,
    MarketParams memory _marketParams
) LeverageRouterBase(_morpho, _curvePool, _usdc, _plDxyBear);

Parameters

openLeverage

Open a Leveraged plDXY-BULL Position in one transaction.

Mints pairs via Splitter, sells plDXY-BEAR on Curve, deposits plDXY-BULL to Morpho.

function openLeverage(
    uint256 principal,
    uint256 leverage,
    uint256 maxSlippageBps,
    uint256 deadline
) external nonReentrant whenNotPaused;

Parameters

closeLeverage

Close a Leveraged plDXY-BULL Position in one transaction.

Uses a single plDXY-BEAR flash mint to unwind positions efficiently. Queries actual debt from Morpho to ensure full repayment even if interest accrued.

function closeLeverage(
    uint256 collateralToWithdraw,
    uint256 maxSlippageBps,
    uint256 deadline
) external nonReentrant whenNotPaused;

Parameters

getActualDebt

Returns the user’s current debt in this market (includes accrued interest).

function getActualDebt(
    address user
) external view returns (uint256 debt);

Parameters

Returns

_getActualDebt

Computes actual debt from Morpho position, rounded up to ensure full repayment.

function _getActualDebt(
    address user
) internal view returns (uint256);

_getBorrowShares

Returns user’s borrow shares from Morpho position.

Used for shares-based repayment to avoid Morpho edge case when repaying exact debt.

function _getBorrowShares(
    address user
) internal view returns (uint256);

_marketId

Computes market ID from marketParams.

function _marketId() internal view returns (bytes32);

onMorphoFlashLoan

Morpho flash loan callback for USDC flash loans (OP_OPEN only).

function onMorphoFlashLoan(
    uint256 amount,
    bytes calldata data
) external override;

Parameters

onFlashLoan

ERC-3156 flash loan callback for plDXY-BEAR flash mints (OP_CLOSE only).

function onFlashLoan(
    address initiator,
    address,
    uint256 amount,
    uint256 fee,
    bytes calldata data
) external override returns (bytes32);

Parameters

Returns

_executeOpen

Executes open leverage operation within Morpho flash loan callback.

function _executeOpen(
    uint256 loanAmount,
    bytes calldata data
) private;

Parameters

_executeClose

Executes close leverage operation within plDXY-BEAR flash mint callback.

function _executeClose(
    uint256 flashAmount,
    uint256 flashFee,
    bytes calldata data
) private;

Parameters

previewOpenLeverage

Preview the result of opening a leveraged plDXY-BULL position.

function previewOpenLeverage(
    uint256 principal,
    uint256 leverage
) external view returns (uint256 loanAmount, uint256 totalUSDC, uint256 expectedPlDxyBull, uint256 expectedDebt);

Parameters

Returns

previewCloseLeverage

Preview the result of closing a leveraged plDXY-BULL position.

function previewCloseLeverage(
    uint256 debtToRepay,
    uint256 collateralToWithdraw
) external view returns (uint256 expectedUSDC, uint256 usdcForBearBuyback, uint256 expectedReturn);

Parameters

Returns

_estimateUsdcForBearBuyback

Estimates USDC needed to buy BEAR using binary search on Curve.

function _estimateUsdcForBearBuyback(
    uint256 bearAmount
) private view returns (uint256);

Parameters

Returns

Events

LeverageOpened

Emitted when a leveraged plDXY-BULL position is opened.

event LeverageOpened(
    address indexed user,
    uint256 principal,
    uint256 leverage,
    uint256 loanAmount,
    uint256 plDxyBullReceived,
    uint256 debtIncurred,
    uint256 maxSlippageBps
);

LeverageClosed

Emitted when a leveraged plDXY-BULL position is closed.

event LeverageClosed(
    address indexed user,
    uint256 debtRepaid,
    uint256 collateralWithdrawn,
    uint256 usdcReturned,
    uint256 maxSlippageBps
);