LeverageRouter

Title: LeverageRouter

Leverage router for plDXY-BEAR positions via Morpho Blue.

Flash loans USDC from Morpho → swaps to plDXY-BEAR on Curve → stakes → deposits to Morpho as collateral. Requires user to authorize this contract in Morpho before use. Uses Morpho’s fee-free flash loans for capital efficiency.

State Variables

STAKED_PLDXY_BEAR

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

IERC4626 public immutable STAKED_PLDXY_BEAR

EXCHANGE_RATE_BUFFER_BPS

Buffer for exchange rate drift protection (1% = 100 bps).

uint256 public constant EXCHANGE_RATE_BUFFER_BPS = 100

Functions

constructor

Deploys LeverageRouter with Morpho market configuration.

constructor(
    address _morpho,
    address _curvePool,
    address _usdc,
    address _plDxyBear,
    address _stakedPlDxyBear,
    MarketParams memory _marketParams
) LeverageRouterBase(_morpho, _curvePool, _usdc, _plDxyBear);

Parameters

Name	Type	Description
`_morpho`	`address`	Morpho Blue protocol address.
`_curvePool`	`address`	Curve USDC/plDXY-BEAR pool address.
`_usdc`	`address`	USDC token address.
`_plDxyBear`	`address`	plDXY-BEAR token address.
`_stakedPlDxyBear`	`address`	splDXY-BEAR staking vault address.
`_marketParams`	`MarketParams`	Morpho market parameters for splDXY-BEAR/USDC.

openLeverage

Open a Leveraged Position in one transaction.

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

Parameters

Name	Type	Description
`principal`	`uint256`	Amount of USDC user sends.
`leverage`	`uint256`	Multiplier (e.g. 3x = 3e18).
`maxSlippageBps`	`uint256`	Maximum slippage tolerance in basis points (e.g., 50 = 0.5%). Capped at MAX_SLIPPAGE_BPS (1%) to limit MEV extraction.
`deadline`	`uint256`	Unix timestamp after which the transaction reverts.

closeLeverage

Close a Leveraged Position in one transaction.

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

Name	Type	Description
`collateralToWithdraw`	`uint256`	Amount of splDXY-BEAR shares to withdraw from Morpho. NOTE: This is staked token shares, not underlying plDXY-BEAR amount. Use STAKED_PLDXY_BEAR.previewRedeem() to convert shares to underlying.
`maxSlippageBps`	`uint256`	Maximum slippage tolerance in basis points (e.g., 50 = 0.5%). Capped at MAX_SLIPPAGE_BPS (1%) to limit MEV extraction.
`deadline`	`uint256`	Unix timestamp after which the transaction reverts.

getActualDebt

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

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

Parameters

Name	Type	Description
`user`	`address`	The address to query debt for.

Returns

Name	Type	Description
`debt`	`uint256`	The actual debt amount in USDC (rounded up).

_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. Routes to open or close handler.

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

Parameters

Name	Type	Description
`amount`	`uint256`	Amount of USDC borrowed.
`data`	`bytes`	Encoded operation parameters.

onFlashLoan

ERC-3156 flash loan callback - not used by LeverageRouter.

Always reverts as LeverageRouter only uses Morpho flash loans.

function onFlashLoan(
    address,
    address,
    uint256,
    uint256,
    bytes calldata
) external pure override returns (bytes32);

_executeOpen

Executes open leverage operation within Morpho flash loan callback.

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

Parameters

Name	Type	Description
`loanAmount`	`uint256`	Amount of USDC borrowed from Morpho.
`data`	`bytes`	Encoded parameters (op, user, deadline, principal, leverage, maxSlippageBps, minPlDxyBear).

_executeClose

Executes close leverage operation within Morpho flash loan callback.

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

Parameters

Name	Type	Description
`loanAmount`	`uint256`	Amount of USDC borrowed from Morpho to repay debt.
`data`	`bytes`	Encoded parameters (op, user, deadline, collateralToWithdraw, borrowShares, maxSlippageBps, minUsdcOut).

_executeCloseNoDebt

Closes position without flash loan when user has no Morpho debt.

function _executeCloseNoDebt(
    address user,
    uint256 collateralToWithdraw,
    uint256 maxSlippageBps,
    uint256 minUsdcOut
) private;

Parameters

Name	Type	Description
`user`	`address`	Position owner receiving USDC.
`collateralToWithdraw`	`uint256`	Amount of splDXY-BEAR shares to withdraw.
`maxSlippageBps`	`uint256`	Maximum slippage for Curve swap.
`minUsdcOut`	`uint256`	Minimum USDC to receive after swap.

previewOpenLeverage

Preview the result of opening a leveraged position.

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

Parameters

Name	Type	Description
`principal`	`uint256`	Amount of USDC user will send.
`leverage`	`uint256`	Multiplier (e.g. 3x = 3e18).

Returns

Name	Type	Description
`loanAmount`	`uint256`	Amount of USDC to flash loan.
`totalUSDC`	`uint256`	Total USDC to swap (principal + loan).
`expectedPlDxyBear`	`uint256`	Expected plDXY-BEAR (based on current curve price).
`expectedDebt`	`uint256`	Expected debt incurred (equals loan amount, no flash fee with Morpho).

previewCloseLeverage

Preview the result of closing a leveraged position.

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

Parameters

Name	Type	Description
`debtToRepay`	`uint256`	Amount of USDC debt to repay.
`collateralToWithdraw`	`uint256`	Amount of plDXY-BEAR collateral to withdraw.

Returns

Name	Type	Description
`expectedUSDC`	`uint256`	Expected USDC from swap (based on current curve price).
`flashFee`	`uint256`	Flash loan fee (always 0 with Morpho).
`expectedReturn`	`uint256`	Expected USDC returned to user after repaying flash loan.

Events

LeverageOpened

Emitted when a leveraged plDXY-BEAR position is opened.

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

LeverageClosed

Emitted when a leveraged plDXY-BEAR position is closed.

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

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