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Lend Midnight to Vault

LendMidnightToVaultCallback moves a lender out of a fixed-rate Midnight position and into an ERC-4626 vault. This can happen before maturity or after maturity.

Description​

A lender holds a fixed-rate position on Morpho Midnight and wants to exit into a variable-rate vault, either before or after maturity. They post a sell (borrow) offer on Midnight to exit their lending position with this callback set as receiverIfMakerIsSeller. When the sell (borrow) offer fills, the callback receives the taker's payment and deposits it into an ERC-4626 compliant vault (typically a Morpho Vault V2) on the lender's behalf.

Why an ERC-4626 vault, not Morpho Blue directly?​

The simplest destination is a Morpho Vault-V2 that allocates 1:1 into a single Morpho Blue market: an unmanaged, immutable vault that mirrors one variable-rate market.

Targeting an ERC-4626 vault rather than a Morpho Blue market directly also keeps the callback generic: the same path supports the Money Market product, curated/managed vaults, and any third-party ERC-4626 strategy whose asset() matches the Midnight market's loan token.

Step-by-step callback execution​

Before any take, the lender posts an exit sell (borrow) offer on the Midnight source market with receiverIfMakerIsSeller set to this callback. The offer carries the callback wiring; the take triggers it.

LendMidnightToVaultCallback flow: a taker calls take() on the lender's exit sell (borrow) offer on Midnight; the taker's payment (sellerAssets) lands on the callback, which deposits it into the ERC-4626 vault and mints shares to the lender.
  1. Take: A taker fills the lender's exit sell (borrow) offer on Midnight by calling MORPHO_MIDNIGHT.take(). The taker's payment (sellerAssets) lands on the callback because the offer's receiverIfMakerIsSeller points at it, and Morpho Midnight invokes onSell on the callback.
  2. Validate the target vault: The vault's asset() must equal the Midnight market's loanToken. Otherwise the callback reverts with TokenMismatch.
  3. Check the lender is debt-free on the source market: If the lender currently holds debt on the same Midnight market, the callback reverts with PositionCrossing. The lender must remain a pure lender throughout the exit.
  4. Calculate & transfer fee: A flat percentage fee is taken from sellerAssets; if non-zero, transfer it to feeRecipient. Through the ratifier this is forced to zero and skipped.
  5. Deposit into the vault: Approve the vault and call deposit(sellerAssets - fee, seller). The lender receives the vault shares directly.

Prerequisites​

  • The sell (borrow) offer's receiverIfMakerIsSeller must point at this callback so sellerAssets lands here before onSell fires.
  • The lender must not be carrying debt on the same Midnight market at execution time.
  • The target vault's underlying asset() must equal the Midnight market's loanToken.
Fees are disabled by default through the ratifier

The Migration Intent Ratifier hard-disables fees on Midnight → Vault callbacks (MAX_FEE_RATE_MIDNIGHT_TO_BLUE = 0). Any non-zero setFeeConfig for these callbacks reverts at the ratifier.