Convertible Deposits

.solhint.json

@@ -8,7 +8,7 @@
         "func-visibility": ["warn", {"ignoreConstructors": true}],
         "no-console": "off",
         "no-empty-blocks": "off",
-        "no-global-import": "off",
+        "no-global-import": "warn",
         "no-inline-assembly": "off",
         "not-rely-on-time": "off",
         "quotes": ["warn", "double"],

ROLES.md

@@ -10,16 +10,20 @@ This document describes the roles that are used in the Olympus protocol.
 | bridge_admin | CrossChainBridge | Allows configuring the CrossChainBridge |
 | callback_admin | BondCallback | Administers the policy |
 | callback_whitelist | BondCallback | Whitelists/blacklists tellers for callback |
+| cd_admin | CDAuctioneer | Allows updating the parameters |
 | contract_registry_admin | ContractRegistryAdmin | Allows registering/deregistering contracts |
 | cooler_overseer | Clearinghouse | Allows activating the Clearinghouse |
 | custodian | TreasuryCustodian | Deposit/withdraw reserves and grant/revoke approvals |
 | distributor_admin | Distributor | Set reward rate, bounty, and other parameters |
 | emergency_restart | Emergency | Reactivates the TRSRY and/or MINTR modules |
 | emergency_restart | EmissionManager | Reactivates the EmissionManager |
+| emergency_shutdown | CDAuctioneer | Activate/deactivate the CDAuctioneer |
+| emergency_shutdown | CDFacility | Activate/deactivate the CDFacility |
 | emergency_shutdown | Clearinghouse | Allows shutting down the protocol in an emergency |
 | emergency_shutdown | Emergency | Deactivates the TRSRY and/or MINTR modules |
 | emergency_shutdown | EmissionManager | Deactivates the EmissionManager |
 | emissions_admin | EmissionManager | Set configuration parameters |
+| heart | CDAuctioneer | Calls the setAuctionParameters() function |
 | heart | EmissionManager | Calls the execute() function |
 | heart | Operator | Call the operate() function |
 | heart | ReserveMigrator | Allows migrating reserves from one reserve token to another |

audit/2025-01_convertible-deposits/README.md

@@ -0,0 +1,222 @@
+# Olympus Convertible Deposits Audit
+
+## Purpose
+
+The purpose of this audit is to review the Convertible Deposits (CD) contracts.
+
+These contracts will be installed in the Olympus V3 "Bophades" system, based on the [Default Framework](https://palm-cause-2bd.notion.site/Default-A-Design-Pattern-for-Better-Protocol-Development-7f8ace6d263c4303b108dc5f8c3055b1).
+
+## Design
+
+The CD contracts provide a mechanism for the protocol to operate an auction that is infinite duration and infinite capacity. Bidders are required to deposit the configured reserve token into the auctioneer (`CDAuctioneer`), and in return they receive a convertible deposit token (`CDEPO`) that can be converted into the configured bid token (OHM) or redeemed for the deposited reserve token.
+
+### Auction Design
+
+The auction is designed to be infinite duration and infinite capacity. The auction is made up of "ticks", where each tick is a price and capacity (number of OHM that can be purchased).
+
+The auction has a number of parameters that affect its behaviour:
+
+- Minimum Price: the minimum price of reserve token per OHM
+- Tick Size: the size/capacity of each tick, in terms of OHM
+- Tick Step: the percentage increase per tick
+- Target: the target amount of OHM sold per day
+
+The `EmissionManager` is responsible for periodically tuning these auction parameters according to the protocol's emission schedule.
+
+There are a few additional behaviours:
+
+- As tick capacity is depleted, the auctioneer will increase the price of the subsequent tick.
+- With each multiple of the day target being reached, the auctioneer will progressively halve the size of each tick.
+- The active tick price will decay over time, in the absence of any bids.
+
+### Convertible Deposit Design
+
+A successful bidder will receive a convertible deposit that can be converted into OHM or redeemed for the deposited reserve token. The deposit is composed of:
+
+- A quantity of `CDEPO` tokens, which is a fungible ERC20 token across all deposits and terms.
+- A `CDPOS` ERC721 token, which represents the non-fungible position of the bidder. This includes terms such as the expiry date, conversion price and size of the convertible deposit.
+
+Using the `CDFacility` policy, convertible deposit holders are able to:
+
+- Convert their deposit into OHM before expiry, at the conversion price of the deposit terms.
+- Redeem the deposited reserve tokens after expiry.
+- Reclaim the deposited reserve tokens before expiry, with a discount.
+
+## Scope
+
+### In-Scope Contracts
+
+- [src/](../../src)
+    - [libraries/](../../src/libraries)
+        - [DecimalString.sol](../../src/libraries/DecimalString.sol)
+        - [Timestamp.sol](../../src/libraries/Timestamp.sol)
+        - [Uint2Str.sol](../../src/libraries/Uint2Str.sol)
+    - [modules/](../../src/modules)
+        - [CDEPO/](../../src/modules/CDEPO)
+            - [CDEPO.v1.sol](../../src/modules/CDEPO/CDEPO.v1.sol)
+            - [OlympusConvertibleDepository.sol](../../src/modules/CDEPO/OlympusConvertibleDepository.sol)
+        - [CDPOS/](../../src/modules/CDPOS)
+            - [CDPOS.v1.sol](../../src/modules/CDPOS/CDPOS.v1.sol)
+            - [OlympusConvertibleDepositPositions.sol](../../src/modules/CDPOS/OlympusConvertibleDepositPositions.sol)
+    - [policies/](../../src/policies)
+        - [interfaces/](../../src/policies/interfaces)
+            - [IConvertibleDepositAuctioneer.sol](../../src/policies/interfaces/IConvertibleDepositAuctioneer.sol)
+            - [IConvertibleDepositFacility.sol](../../src/policies/interfaces/IConvertibleDepositFacility.sol)
+            - [IEmissionManager.sol](../../src/policies/interfaces/IEmissionManager.sol)
+        - [CDAuctioneer.sol](../../src/policies/CDAuctioneer.sol)
+        - [CDFacility.sol](../../src/policies/CDFacility.sol)
+        - [EmissionManager.sol](../../src/policies/EmissionManager.sol)
+
+The following pull requests can be referred to for the in-scope contracts:
+
+- [Convertible Deposits](https://github.com/OlympusDAO/olympus-v3/pull/29)
+
+See the [solidity-metrics.html](./solidity-metrics.html) report for a summary of the code metrics for these contracts.
+
+### Previous Audits
+
+You can review previous audits here:
+
+- Spearbit (07/2022)
+    - [Report](https://storage.googleapis.com/olympusdao-landing-page-reports/audits/2022-08%20Code4rena.pdf)
+- Code4rena Olympus V3 Audit (08/2022)
+    - [Repo](https://github.com/code-423n4/2022-08-olympus)
+    - [Findings](https://github.com/code-423n4/2022-08-olympus-findings)
+- Kebabsec Olympus V3 Remediation and Follow-up Audits (10/2022 - 11/2022)
+    - [Remediation Audit Phase 1 Report](https://hackmd.io/tJdujc0gSICv06p_9GgeFQ)
+    - [Remediation Audit Phase 2 Report](https://hackmd.io/@12og4u7y8i/rk5PeIiEs)
+    - [Follow-on Audit Report](https://hackmd.io/@12og4u7y8i/Sk56otcBs)
+- Cross-Chain Bridge by OtterSec (04/2023)🙏🏼
+    - [Report](https://storage.googleapis.com/olympusdao-landing-page-reports/audits/Olympus-CrossChain-Audit.pdf)
+- PRICEv2 by HickupHH3 (06/2023)
+    - [Report](https://storage.googleapis.com/olympusdao-landing-page-reports/audits/2023_7_OlympusDAO-final.pdf)
+    - [Pre-Audit Commit](https://github.com/OlympusDAO/bophades/tree/17fe660525b2f0d706ca318b53111fbf103949ba)
+    - [Post-Remediations Commit](https://github.com/OlympusDAO/bophades/tree/9c10dc188210632b6ce46c7a836484e8e063151f)
+- Cooler Loans by Sherlock (09/2023)
+    - [Report](https://docs.olympusdao.finance/assets/files/Cooler_Update_Audit_Report-f3f983a8ee8632637790bcc136275aa0.pdf)
+- RBS 1.3 & 1.4 by HickupHH3 (11/2023)
+    - [Report](https://storage.googleapis.com/olympusdao-landing-page-reports/audits/OlympusDAO%20Nov%202023.pdf)
+    - [Pre-Audit Commit](https://github.com/OlympusDAO/bophades/tree/7a0902cf3ced19d41aafa83e96cf235fb3f15921)
+    - [Post-Remediations Commit](https://github.com/OlympusDAO/bophades/tree/e61d954cc620254effb014f2d2733e59d828b5b1)
+- Emission Manager by yAudit (11/2024)
+    - [Report](https://storage.googleapis.com/olympusdao-landing-page-reports/audits/2024_11_EmissionManager_ReserveMigrator.pdf)
+    - [Pre-Audit Commit](https://github.com/OlympusDAO/bophades/tree/e367e7977ea58a2fd365296d9c9f620c7cd0512d)
+    - [Post-Remediations Commit](https://github.com/OlympusDAO/bophades/tree/3ace544f24adfd3d218ae625b9d1449321f9e184)
+- LoanConsolidator by HickupHH3 (11/2024)
+    - [Report](https://storage.googleapis.com/olympusdao-landing-page-reports/audits/2024_10_LoanConsolidator_Audit.pdf)
+    - [Pre-Audit Commit](https://github.com/OlympusDAO/bophades/tree/95479d5d4a9bb941c60c7a8347709d9fc895b819)
+    - [Post-Remediations Commit](https://github.com/OlympusDAO/bophades/tree/d2d5b63dee16a259400628df4cf6ce2d3df02558)
+
+## Architecture
+
+### Overview
+
+The diagrams below illustrate the architecture of the components.
+
+#### Activation and Deactivation
+
+Callers with the appropriate permissions can activate and deactivate the functionality of the CDAuctioneer and CDFacility contracts.
+
+```mermaid
+flowchart TD
+  cd_admin((cd_admin)) -- initialize --> CDAuctioneer
+  emergency_restart((emergency_restart)) -- restart --> EmissionManager
+  emergency_shutdown((emergency_shutdown)) -- activate/deactivate --> CDAuctioneer
+  emergency_shutdown((emergency_shutdown)) -- activate/deactivate --> CDFacility
+  emergency_shutdown((emergency_shutdown)) -- deactivate --> EmissionManager
+  emissions_admin((emissions_admin)) -- initialize --> EmissionManager
+
+  subgraph Policies
+    CDAuctioneer
+    CDFacility
+    EmissionManager
+  end
+```
+
+#### Auction Tuning
+
+As part of the regular heartbeat, the EmissionManager contract will calculate the desired emission rate and set the auction parameters on CDAuctioneer accordingly.
+
+```mermaid
+sequenceDiagram
+    participant caller
+    participant Heart
+    participant EmissionManager
+    participant CDAuctioneer
+
+    caller->>Heart: beat
+    Heart->>EmissionManager: execute
+    EmissionManager->>CDAuctioneer: setAuctionParameters
+```
+
+#### Deposit Creation
+
+A bidder can call `bid()` on the CDAuctioneer to create a deposit. This will result in the caller receiving the CDEPO tokens and a CDPOS position.
+
+```mermaid
+sequenceDiagram
+    participant caller
+    participant CDAuctioneer
+    participant CDFacility
+    participant CDPOS
+    participant CDEPO
+    participant MINTR
+    participant ReserveToken as Reserve (ERC20)
+    participant VaultToken as Vault (ERC4626)
+
+    caller->>CDAuctioneer: bid(depositAmount)
+    CDAuctioneer->>CDAuctioneer: determine conversion price
+    CDAuctioneer->>CDFacility: create(caller, depositAmount, conversionPrice, expiry, wrapNft)
+    CDFacility->>CDEPO: mintFor(caller, depositAmount)
+    CDEPO->>ReserveToken: transferFrom(caller, depositAmount)
+    caller-->>CDEPO: reserve tokens
+    CDEPO->>VaultToken: deposit(depositAmount, caller)
+    VaultToken-->>CDEPO: vault tokens
+    CDEPO-->>caller: CDEPO tokens
+    CDFacility->>CDPOS: create(caller, CDEPO, depositAmount, conversionPrice, expiry, wrapNft)
+    CDPOS-->>caller: CDPOS ERC721 token
+    CDFacility->>MINTR: increaseMintApproval(CDFacility, convertedAmount)
+```
+
+#### Deposit Conversion
+
+Prior to the expiry of the convertible deposit, a deposit owner can convert their deposit into OHM at the conversion price of the deposit terms.
+
+```mermaid
+sequenceDiagram
+    participant caller
+    participant CDFacility
+    participant CDPOS
+    participant CDEPO
+    participant TRSRY
+    participant MINTR
+    participant ReserveToken
+    participant VaultToken
+    participant OHM
+
+    caller->>CDFacility: convert(positionIds, amounts)
+    loop For each position
+        CDFacility->>CDPOS: update(positionId, remainingAmount)
+    end
+    CDFacility->>CDEPO: redeemFor(caller, amount)
+    CDEPO->>ReserveToken: transfer(CDFacility, amount)
+    CDFacility->>VaultToken: deposit(amount, TRSRY)
+    VaultToken-->>TRSRY: vault tokens
+    CDFacility->>MINTR: mintOhm(caller, convertedAmount)
+    MINTR->>OHM: mint(caller, convertedAmount)
+    OHM-->>caller: OHM tokens
+```
+
+#### Deposit Reclaim
+
+After
+
+### CDEPO (Module)
+
+### CDPOS (Module)
+
+### CDFacility (Policy)
+
+### CDAuctioneer (Policy)
+
+### EmissionManager (Policy)

foundry.toml

@@ -35,3 +35,4 @@ remappings_generate = false
 
 [dependencies]
 surl = { version = "1.0.0", git = "https://github.com/memester-xyz/surl.git", rev = "034c912ae9b5e707a5afd21f145b452ad8e800df" }
+base64 = { version = "1.1.0", git = "https://github.com/Brechtpd/base64.git", rev = "4d85607b18d981acff392d2e99ba654305552a97" }

remappings.txt

@@ -28,3 +28,4 @@ openzeppelin/=lib/forge-proposal-simulator/lib/openzeppelin-contracts/contracts/
 solidity-code-metrics/=node_modules/solidity-code-metrics/
 solidity-examples/=lib/solidity-examples/contracts/
 surl-1.0.0/=dependencies/surl-1.0.0/src/
+base64-1.1.0/=dependencies/base64-1.1.0/

soldeer.lock

@@ -1,3 +1,9 @@
+[[dependencies]]
+name = "base64"
+version = "1.1.0"
+git = "https://github.com/Brechtpd/base64.git"
+rev = "4d85607b18d981acff392d2e99ba654305552a97"
+
 [[dependencies]]
 name = "surl"
 version = "1.0.0"

src/libraries/DecimalString.sol

@@ -0,0 +1,92 @@
+// SPDX-License-Identifier: AGPL-3.0-only
+pragma solidity ^0.8;
+
+import {uint2str} from "./Uint2Str.sol";
+import {console2} from "forge-std/console2.sol";
+
+library DecimalString {
+    /// @notice Converts a uint256 value to a string with a specified number of decimal places.
+    ///         The value is adjusted by the scale factor and then formatted to the specified number of decimal places.
+    ///         The decimal places are not zero-padded, so the result is not always the same length.
+    /// @dev    This is inspired by code in [FixedStrikeOptionTeller](https://github.com/Bond-Protocol/option-contracts/blob/b8ce2ca2bae3bd06f0e7665c3aa8d827e4d8ca2c/src/fixed-strike/FixedStrikeOptionTeller.sol#L722).
+    ///
+    /// @param  value_            The uint256 value to convert to a string.
+    /// @param  valueDecimals_    The scale factor of the value.
+    /// @param  decimalPlaces_    The number of decimal places to format the value to.
+    /// @return result            A string representation of the value with the specified number of decimal places.
+    function toDecimalString(
+        uint256 value_,
+        uint8 valueDecimals_,
+        uint8 decimalPlaces_
+    ) internal pure returns (string memory) {
+        // Handle zero case
+        if (value_ == 0) return "0";
+
+        // Convert the entire number to string first
+        string memory str = uint2str(value_);
+        bytes memory bStr = bytes(str);
+
+        // If no decimal places requested, just handle the scaling and return
+        if (decimalPlaces_ == 0) {
+            if (bStr.length <= valueDecimals_) return "0";
+            return uint2str(value_ / (10 ** valueDecimals_));
+        }
+
+        // If value is a whole number, return as-is
+        if (valueDecimals_ == 0) return str;
+
+        // Calculate decimal places to show (limited by request and available decimals)
+        uint256 maxDecimalPlaces = valueDecimals_ > decimalPlaces_
+            ? decimalPlaces_
+            : valueDecimals_;
+
+        // Handle numbers smaller than 1
+        if (bStr.length <= valueDecimals_) {
+            bytes memory smallResult = new bytes(2 + maxDecimalPlaces);
+            smallResult[0] = "0";
+            smallResult[1] = ".";
+
+            uint256 leadingZeros = valueDecimals_ - bStr.length;
+            uint256 zerosToAdd = leadingZeros > maxDecimalPlaces ? maxDecimalPlaces : leadingZeros;
+
+            // Add leading zeros after decimal
+            for (uint256 i = 0; i < zerosToAdd; i++) {
+                smallResult[i + 2] = "0";
+            }
+
+            // Add available digits
+            for (uint256 i = 0; i < maxDecimalPlaces - zerosToAdd && i < bStr.length; i++) {
+                smallResult[i + 2 + zerosToAdd] = bStr[i];
+            }
+
+            return string(smallResult);
+        }
+
+        // Find decimal position and last significant digit
+        uint256 decimalPosition = bStr.length - valueDecimals_;
+        uint256 lastNonZeroPos = decimalPosition;
+        for (uint256 i = 0; i < maxDecimalPlaces && i + decimalPosition < bStr.length; i++) {
+            if (bStr[decimalPosition + i] != "0") {
+                lastNonZeroPos = decimalPosition + i + 1;
+            }
+        }
+
+        // Create and populate result
+        bytes memory finalResult = new bytes(
+            lastNonZeroPos - decimalPosition > 0 ? lastNonZeroPos + 1 : lastNonZeroPos
+        );
+
+        for (uint256 i = 0; i < decimalPosition; i++) {
+            finalResult[i] = bStr[i];
+        }
+
+        if (lastNonZeroPos > decimalPosition) {
+            finalResult[decimalPosition] = ".";
+            for (uint256 i = 0; i < lastNonZeroPos - decimalPosition; i++) {
+                finalResult[decimalPosition + 1 + i] = bStr[decimalPosition + i];
+            }
+        }
+
+        return string(finalResult);
+    }
+}