Moonwell Protocol v2

The Moonwell Protocol is a fork of Compound v2 with features like borrow/supply caps, cross-chain governance, and multi-token emissions.

The "v2" release of the Moonwell Protocol is a major system upgrade to use solidity 0.8.19, add supply caps, and a number of improvements for user experience (things like mintWithPermit and claimAllRewards). Solidity version 0.8.20 was not used because EIP-3855 which adds the PUSH0 opcode was not be live on base at the time this system was deployed.

Table of Contents

• Contributing
• Engineering Guidelines
• Protocol Core
  • JumpRateModel: Jump rate model contract that automatically adjusts the interest rate based on the utilization rate.
  • ChainlinkOracle: A Chainlink oracle contract that allows the system to fetch the price of assets on the Ethereum network. Maps the underlying token symbol to a chainlink feed address for easy lookups of price. Allows admin (temporal governor) to override the price of an asset in case of a price feed failure.
  • ChainlinkCompositeOracle: A Chainlink composite oracle contract that combines multiple Chainlink oracles into a single oracle. This allows the system to fetch and combine the price of assets on the base network from multiple sources and receive the product of the results. Two or three asset prices can be combined together, and the result can be used as the price of a new asset. This is useful for calculating the price of a synthetic asset that is a combination of multiple assets. Conforms with the Chainlink AggregatorV3Interface.
  • Unitroller: A proxy contract that delegates calls to the Comptroller contract. This contract is used to upgrade the Comptroller contract and hold all state.
  • Comptroller: A logic contract that handles the business logic of the system. Validates user actions such as liquidating, supplying and borrowing assets. Stores important variables such as the liquidation incentive, close factor, and markets users have entered.
  • InterestRateModel: An abstract interest rate model contract with no functions that defines an interface for all interest rate models. This contract is used by the JumpRateModel contract.
  • MToken: A contract that represents a token that has been supplied to the system. Users can supply and borrow this token. The contract also allows users to redeem their tokens for the underlying asset.
  • WETHRouter: A contract that allows users to wrap their ETH and then mint mWETH atomically. This contract also allows users to unwrap their mWETH and then unwrap their WETH into ETH atomically by first approving the contract to spend their mWETH.
  • MultiRewardDistributor: Reward distributor contract that allows the system to distribute rewards for supplying and borrowing in multiple reward tokens per MToken. This contract is used by the Comptroller contract. This contract's admin is the Comptroller's admin which is the Temporal Governor.
  • MERC20Delegator: A proxy contract that delegates calls to the MERC20Delegate contract. This contract is used to upgrade the MERC20Delegate contract and hold all state.
  • MERC20Delegate: A logic contract that handles the business logic of the MERC20Delegator contract. This contract inherits the MToken contract and provides all the functionality of the MToken contract.
• Governance
  • Contributing: Documentation on submitting proposals to the TemporalGovernor contract using the cross chain proposal simulation framework.
  • Listing new markets: Documentation on listing new markets on the Moonwell Protocol.
  • Temporal Governor: A cross chain governance contract that allows proposals passed by the community on moonbeam to be relayed across the chain to the Base network. This contract owns the entire system deployment on base.
  • Multichain Governor: Multichain Governor is live on Moonbeam and is the source of truth for all governance actions in Moonwell.
  • Vote Collection: Documentation on how votes are collected on external chains and relayed to Moonbeam.
• Deployment: Steps to deploy the Moonwell Protocol to a new chain.

Tests

The protocol has several layers of testing: unit testing, integration testing, invariants, fuzzing, mutation and formal verification.

Unit tests

The unit tests coverage must be kept as close to 100% as possible.

• use forge test -vvv --match-contract UnitTest to run the unit tests

Integration tests

• use forge test --match-contract IntegrationTest --fork-url ethereum to run the integration tests
• use forge test --match-contract ArbitrumTest --fork-url arbitrum to run the ChainlinkCompositeOracle tests
• use forge test --match-contract BaseTest --fork-url base to run the Base ChainlinkCompositeOracle tests
• use forge test --match-contract LiveSystemTest --fork-url baseSepolia to run the base sepolia live system tests
• use forge test --match-contract MultichainProposalTest to run the Multichain Governor integration tests

Invariants

• use forge test --match-contract Invariant to run the invariants tests

Formal Verification

Moonwell uses Certora to formally verify key protocol invariants. The Certora formal specifications are located in the certora directory. To run the Certora tests, first you need to export the CERTORAKEY environment variable with the Certora API key.

• use certoraRun certora/confs/ConfigurablePauseGuardian.conf to run the ConfigurablePauseGuardian tests.
• use certoraRun certora/confs/ERC20.conf to run the ERC20 tests.
• use certoraRun certora/confs/MultichainGovernor.conf to run the MultichainGovernor tests.
• use certoraRun certora/confs/MultichainVoteCollection.conf to run the MultichainVoteCollection tests.

Mutation Testing

Use certora gambit to generate mutations for MultichainVoteCollection and MultichainGovernor and then run each mutation against unit, integration tests and formal specification using run-vote-collection-mutation.sh and run-governor-mutation.sh script respectively. Each scripts generates a MutationTestOuput/Result_<Contract>.md file which stores following details for each mutations:

• mutant diff with original contract
• unit/integration test results with number and list of failing tests if any
• result of certora formal verification against mutant with details such as number of failed rules, their list and certora prover cli job url (Certora formal verification runs only in MultichainVoteCollection script)

Finally at the end it logs total number of failed mutations.

The following steps needs to be followed for mutation testing:

1. Run certora gambit to generate mutations:

• MultichainVoteCollection

gambit mutate --json certora/mutation/MultichainVoteCollectionConfig.json

• MultichainGovernor

gambit mutate --json certora/mutation/MultichainGovernorConfig.json

2. Run script that runs tests against mutants and outputs results into a readme file:

• MultichainVoteCollection

sh bin/run-vote-collection-mutation.sh

• MultichainVoteCollection

sh bin/run-governor-mutation.sh

Note: Remember the script replaces original contract code with mutated code and thus both script cannot be run in parallel as the tests might fail because of mutated code of the other contract. But you can easily run scripts in parallel with just cloning the same repository and running single script in a single repository. Also remember to checkout any changes before running the mutations as they might affect the mutation output.

Running All Tests

Run run.sh to execute all the different tests