🔷Morpho Markets

The ChainlinkOEVMorphoWrapper is used for liquidations in Morpho Blue isolated lending markets. Unlike the core market wrapper, this variant receives underlying tokens (not mTokens) as collateral and supports slippage protection via maxRepayAmount.

Key Differences from Core Markets

Aspect	Core (ChainlinkOEVWrapper)	Morpho (ChainlinkOEVMorphoWrapper)
Market type	Moonwell Core (mToken)	Morpho Blue isolated
Collateral received	mTokens	Underlying tokens
Market identification	mToken addresses	MarketParams struct
Slippage protection	Fixed repay amount	maxRepayAmount parameter
Excess return	N/A	Unused loan tokens returned automatically

Function Signature

function updatePriceEarlyAndLiquidate(
    MarketParams memory marketParams,
    address borrower,
    uint256 seizedAssets,
    uint256 maxRepayAmount
) external

Parameter	Type	Description
marketParams	MarketParams	Morpho market identification struct
borrower	address	The underwater borrower to liquidate
seizedAssets	uint256	Amount of collateral to seize
maxRepayAmount	uint256	Maximum loan tokens willing to repay (slippage protection)

MarketParams Struct

struct MarketParams {
    address loanToken;       // Token being borrowed (e.g. USDC)
    address collateralToken; // Token used as collateral (e.g. xWELL)
    address oracle;          // Must use this OEV wrapper as BASE_FEED_1
    address irm;             // Interest rate model
    uint256 lltv;            // Liquidation loan-to-value ratio
}

Liquidation Flow

┌─────────────────┐     ┌────────────────────────────┐     ┌─────────────────┐
│   Liquidator    │────▶│  ChainlinkOEVMorphoWrapper │────▶│   Morpho Blue   │
└─────────────────┘     └────────────────────────────┘     └─────────────────┘
        │                           │                              │
        │  1. Transfer max loan     │                              │
        │     tokens                │                              │
        │──────────────────────────▶│                              │
        │                           │  2. Update cachedRoundId     │
        │                           │                              │
        │                           │  3. Approve & call liquidate │
        │                           │─────────────────────────────▶│
        │                           │                              │
        │                           │  4. Receive collateral       │
        │                           │     tokens                   │
        │                           │◀─────────────────────────────│
        │                           │                              │
        │  5. Return excess loan    │                              │
        │     tokens                │                              │
        │◀──────────────────────────│                              │
        │                           │                              │
        │  6. Receive collateral    │  7. Send protocol fee        │
        │     (repay + bonus)       │     to feeRecipient          │
        │◀──────────────────────────│                              │

Solidity Example

// SPDX-License-Identifier: MIT
pragma solidity 0.8.19;

import {IERC20} from "@openzeppelin/contracts/token/ERC20/IERC20.sol";

struct MarketParams {
    address loanToken;
    address collateralToken;
    address oracle;
    address irm;
    uint256 lltv;
}

interface IChainlinkOEVMorphoWrapper {
    function updatePriceEarlyAndLiquidate(
        MarketParams memory marketParams,
        address borrower,
        uint256 seizedAssets,
        uint256 maxRepayAmount
    ) external;
}

contract MorphoOEVLiquidator {
    IChainlinkOEVMorphoWrapper public oevWrapper;

    constructor(address _oevWrapper) {
        oevWrapper = IChainlinkOEVMorphoWrapper(_oevWrapper);
    }

    function liquidate(
        MarketParams calldata marketParams,
        address borrower,
        uint256 seizedAssets,
        uint256 maxRepayAmount
    ) external {
        address loanToken = marketParams.loanToken;

        // 1. Transfer max loan tokens from caller
        IERC20(loanToken).transferFrom(msg.sender, address(this), maxRepayAmount);

        // 2. Approve OEV wrapper
        IERC20(loanToken).approve(address(oevWrapper), maxRepayAmount);

        // 3. Execute liquidation - excess tokens returned automatically
        oevWrapper.updatePriceEarlyAndLiquidate(
            marketParams,
            borrower,
            seizedAssets,
            maxRepayAmount
        );

        // 4. Collateral tokens (not mTokens) are now in this contract
        uint256 collateralBalance = IERC20(marketParams.collateralToken).balanceOf(
            address(this)
        );
        IERC20(marketParams.collateralToken).transfer(msg.sender, collateralBalance);

        // 5. Return any remaining loan tokens
        uint256 loanBalance = IERC20(loanToken).balanceOf(address(this));
        if (loanBalance > 0) {
            IERC20(loanToken).transfer(msg.sender, loanBalance);
        }
    }
}

The market's Morpho oracle must have this OEV wrapper as BASE_FEED_1. The contract verifies this requirement and will revert if the oracle is not configured correctly.

Revert Conditions

Condition	Error Message
borrower == address(0)	"ChainlinkOEVMorphoWrapper: borrower cannot be zero address"
seizedAssets == 0	"ChainlinkOEVMorphoWrapper: seized assets cannot be zero"
maxRepayAmount == 0	"ChainlinkOEVMorphoWrapper: max repay amount cannot be zero"
Wrong oracle BASE_FEED_1	"ChainlinkOEVMorphoWrapper: oracle must be the same as the base feed 1"
Chainlink price ≤ 0	"Chainlink price cannot be lower or equal to 0"
Incomplete round	"Round is in incompleted state"
Stale Chainlink data	"Stale price"
Actual repay > max	"ChainlinkOEVMorphoWrapper: repaid amount exceeds maximum"
Invalid loan token price	"ChainlinkOEVMorphoWrapper: invalid loan token price"

Events

Event	Parameters
PriceUpdatedEarlyAndLiquidated	address indexed borrower, uint256 seizedAssets, uint256 repaidAssets, uint256 protocolFee, uint256 liquidatorFee
FeeRecipientChanged	address oldFeeRecipient, address newFeeRecipient
LiquidatorFeeBpsChanged	uint16 oldLiquidatorFeeBps, uint16 newLiquidatorFeeBps
MaxRoundDelayChanged	uint256 oldMaxRoundDelay, uint256 newMaxRoundDelay
MaxDecrementsChanged	uint256 oldMaxDecrements, uint256 newMaxDecrements

Note: The Morpho wrapper's PriceUpdatedEarlyAndLiquidated event has different parameters than the core wrapper - it uses seizedAssets and repaidAssets instead of repayAmount, mTokenCollateral, and mTokenLoan.

Deployed Contracts

Base - ChainlinkOEVMorphoWrapper

Asset	Address
WELL/USD	0xAEeE6335f50e1f8aF924DF0742b1879C9761F5f5

WELL/USDC Morpho Market Parameters (Base)

MarketParams memory params = MarketParams({
    loanToken: 0x833589fCD6eDb6E08f4c7C32D4f71b54bdA02913,       // USDC
    collateralToken: 0xA88594D404727625A9437C3f886C7643872296AE, // xWELL
    oracle: 0x71FBaD6c2200C8A5B89380f9B6bb8a35d411c852,          // Morpho Chainlink Oracle
    irm: 0x46415998764C29aB2a25CbeA6254146D50D22687,             // Adaptive Curve IRM
    lltv: 625000000000000000                                     // 62.5%
});