MarketMakingPolicy

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Inherits: IMarketMakingPolicy

Title: MarketMakingPolicy

Singleton IInterestRatePolicy where each user writes one curve per Tenor market.

Each point carries (ttm, sellRate, buyRate) on a shared TTM grid with sellRate <= buyRate enforced point-wise. getRate returns the side selected by userIsBuyer (true when buying credit on Midnight); the rate gap is the spread.

Rates are capped at type(uint112).max: within 192 seconds of maturity, even the max rate gives price = WAD^2 / (WAD + rate * ttm) >= 1 after flooring, so a quote of exactly 0 is not expressible there.

The policy does not verify which callback is in use; it trusts the userIsBuyer flag and the maturities provided by the ratifier.

getRate reverts on Midnight to Midnight renewals (both source and target maturities nonzero); not supported.

Lend-only: only lend entry and exit flows are supported (vault -> Midnight and Midnight -> vault).

setCurve/clearCurve use the Midnight contract as authorization authority (caller must be onBehalf or authorized by it on Midnight); each maker's curve is stored per (onBehalf, tenorMarketId).

Constants

MORPHO_MIDNIGHT

The Morpho Midnight protocol used for authorization checks.

IMidnight public immutable MORPHO_MIDNIGHT

MAX_POINTS

uint256 internal constant MAX_POINTS = 8

State Variables

curves

mapping(address user => mapping(bytes32 tenorMarketId => CurvePoint[])) public curves

Functions

constructor

constructor(address morphoMidnight) ;

setCurve

Overwrites the curve of onBehalf for tenorMarketId.

Enforces 1 to MAX_POINTS points, strictly increasing ttm, and sellRate <= buyRate at every point.

function setCurve(address onBehalf, bytes32 tenorMarketId, CurvePoint[] calldata points) external;

clearCurve

Deletes the curve of onBehalf for tenorMarketId.

function clearCurve(address onBehalf, bytes32 tenorMarketId) external;

getRate

Returns the interest rate for the given renewal context.

Midnight to Midnight renewals are rejected. A buy quotes the target market's buyRate, a sell the source market's sellRate. The ttm is floored at zero so past-maturity markets clamp instead of underflowing.

function getRate(
    bytes32 sourceTenorMarketId,
    bytes32 targetTenorMarketId,
    uint256, /* renewalPeriodStart */
    address user,
    uint256 sourceMaturity,
    uint256 targetMaturity,
    bool userIsBuyer
) public view virtual returns (uint256);

Parameters

Name	Type	Description
sourceTenorMarketId	bytes32	The id of the source side of the renewal (the position being closed).
targetTenorMarketId	bytes32	The id of the target side of the renewal (the position being entered).
<none>	uint256
user	address	The position owner being renewed (the offer maker in the make-on-behalf flow).
sourceMaturity	uint256	The source market maturity (0 for Blue to Midnight migrations).
targetMaturity	uint256	The target market maturity (0 for Midnight to Blue exits).
userIsBuyer	bool	The renewed user's side in the trade, derived from the migration direction.

Returns

Name	Type	Description
<none>	uint256	rate The interpolated rate per second in WAD at the given elapsed time.

_loadCurve

Materializes the requested side of curve into parallel (knots, values) arrays.

function _loadCurve(CurvePoint[] storage curve, bool buySide)
    private
    view
    returns (uint256[] memory knots, uint256[] memory values);