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Feat: performance fee implementation #13

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May 29, 2024
Merged

Feat: performance fee implementation #13

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59ad9d4
feat: performance fee impl
haythemsellami May 28, 2024
bee036c
add tests
haythemsellami May 28, 2024
f8c05a5
fix
haythemsellami May 28, 2024
801fd3d
clean
haythemsellami May 28, 2024
dd28b15
clean
haythemsellami May 29, 2024
09ea824
chore: add natspec
haythemsellami May 29, 2024
b34d179
fix
haythemsellami May 29, 2024
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52 changes: 49 additions & 3 deletions src/FourSixTwoSixAgg.sol
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Original file line number Diff line number Diff line change
Expand Up @@ -4,7 +4,7 @@ pragma solidity ^0.8.0;
import {Context} from "@openzeppelin/utils/Context.sol";
import {ERC20, IERC20} from "@openzeppelin/token/ERC20/ERC20.sol";
import {SafeERC20} from "@openzeppelin/token/ERC20/utils/SafeERC20.sol";
import {ERC4626, IERC4626} from "@openzeppelin/token/ERC20/extensions/ERC4626.sol";
import {ERC4626, IERC4626, Math} from "@openzeppelin/token/ERC20/extensions/ERC4626.sol";
import {AccessControlEnumerable} from "@openzeppelin/access/AccessControlEnumerable.sol";
import {EVCUtil, IEVC} from "ethereum-vault-connector/utils/EVCUtil.sol";
import {BalanceForwarder} from "./BalanceForwarder.sol";
Expand All @@ -27,6 +27,10 @@ contract FourSixTwoSixAgg is BalanceForwarder, EVCUtil, ERC4626, AccessControlEn
error InvalidStrategyAsset();
error StrategyAlreadyExist();
error AlreadyRemoved();
error PerformanceFeeAlreadySet();
error MaxPerformanceFeeExceeded();
error FeeRecipientNotSet();
error FeeRecipientAlreadySet();

uint8 internal constant REENTRANCYLOCK__UNLOCKED = 1;
uint8 internal constant REENTRANCYLOCK__LOCKED = 2;
Expand All @@ -41,7 +45,12 @@ contract FourSixTwoSixAgg is BalanceForwarder, EVCUtil, ERC4626, AccessControlEn
bytes32 public constant STRATEGY_ADDER_ROLE_ADMIN_ROLE = keccak256("STRATEGY_ADDER_ROLE_ADMIN_ROLE");
bytes32 public constant STRATEGY_REMOVER_ROLE = keccak256("STRATEGY_REMOVER_ROLE");
bytes32 public constant STRATEGY_REMOVER_ROLE_ADMIN_ROLE = keccak256("STRATEGY_REMOVER_ROLE_ADMIN_ROLE");
bytes32 public constant PERFORMANCE_FEE_MANAGER_ROLE = keccak256("PERFORMANCE_FEE_MANAGER_ROLE");
bytes32 public constant PERFORMANCE_FEE_MANAGER_ROLE_ADMIN_ROLE =
keccak256("PERFORMANCE_FEE_MANAGER_ROLE_ADMIN_ROLE");

/// @dev The maximum performanceFee the vault can have is 50%
uint256 internal constant MAX_PERFORMANCE_FEE = 0.5e18;
uint256 public constant INTEREST_SMEAR = 2 weeks;

ESRSlot internal esrSlot;
Expand All @@ -52,6 +61,10 @@ contract FourSixTwoSixAgg is BalanceForwarder, EVCUtil, ERC4626, AccessControlEn
uint256 public totalAllocated;
/// @dev Total amount of allocation points across all strategies including the cash reserve.
uint256 public totalAllocationPoints;
/// @dev fee rate
uint256 public performanceFee;
/// @dev fee recipient address
address public feeRecipient;

/// @dev An array of strategy addresses to withdraw from
address[] public withdrawalQueue;
Expand Down Expand Up @@ -137,6 +150,25 @@ contract FourSixTwoSixAgg is BalanceForwarder, EVCUtil, ERC4626, AccessControlEn
_setRoleAdmin(WITHDRAW_QUEUE_REORDERER_ROLE, WITHDRAW_QUEUE_REORDERER_ROLE_ADMIN_ROLE);
_setRoleAdmin(STRATEGY_ADDER_ROLE, STRATEGY_ADDER_ROLE_ADMIN_ROLE);
_setRoleAdmin(STRATEGY_REMOVER_ROLE, STRATEGY_REMOVER_ROLE_ADMIN_ROLE);
_setRoleAdmin(PERFORMANCE_FEE_MANAGER_ROLE, PERFORMANCE_FEE_MANAGER_ROLE_ADMIN_ROLE);
}

/// @notice Set performance fee recipient address
/// @notice @param _newFeeRecipient Recipient address
function setFeeRecipient(address _newFeeRecipient) external onlyRole(PERFORMANCE_FEE_MANAGER_ROLE) {
if (_newFeeRecipient == feeRecipient) revert FeeRecipientAlreadySet();

feeRecipient = _newFeeRecipient;
}

/// @notice Set performance fee (1e18 == 100%)
/// @notice @param _newFee Fee rate
function setPerformanceFee(uint256 _newFee) external onlyRole(PERFORMANCE_FEE_MANAGER_ROLE) {
if (_newFee > MAX_PERFORMANCE_FEE) revert MaxPerformanceFeeExceeded();
if (feeRecipient == address(0)) revert FeeRecipientNotSet();
if (_newFee == performanceFee) revert PerformanceFeeAlreadySet();

performanceFee = _newFee;
}

/// @notice Enables balance forwarding for sender
Expand Down Expand Up @@ -426,7 +458,6 @@ contract FourSixTwoSixAgg is BalanceForwarder, EVCUtil, ERC4626, AccessControlEn
IERC4626 strategy = IERC4626(withdrawalQueue[i]);

_harvest(address(strategy));
_gulp();

Strategy storage strategyStorage = strategies[address(strategy)];

Expand All @@ -447,6 +478,8 @@ contract FourSixTwoSixAgg is BalanceForwarder, EVCUtil, ERC4626, AccessControlEn
strategy.withdraw(withdrawAmount, address(this), address(this));
}

_gulp();

if (assetsRetrieved < assets) {
revert NotEnoughAssets();
}
Expand All @@ -456,6 +489,8 @@ contract FourSixTwoSixAgg is BalanceForwarder, EVCUtil, ERC4626, AccessControlEn

function _gulp() internal {
ESRSlot memory esrSlotCache = updateInterestAndReturnESRSlotCache();

if (totalAssetsDeposited == 0) return;
uint256 toGulp = totalAssetsAllocatable() - totalAssetsDeposited - esrSlotCache.interestLeft;

uint256 maxGulp = type(uint168).max - esrSlotCache.interestLeft;
Expand Down Expand Up @@ -550,13 +585,24 @@ contract FourSixTwoSixAgg is BalanceForwarder, EVCUtil, ERC4626, AccessControlEn
uint256 yield = underlyingBalance - strategyData.allocated;
strategies[strategy].allocated = uint120(underlyingBalance);
totalAllocated += yield;
// TODO possible performance fee

_accruePerformanceFee(yield);
} else {
// TODO handle losses
revert NegativeYield();
}
}

function _accruePerformanceFee(uint256 _yield) internal {
if (feeRecipient == address(0) || performanceFee == 0) return;

// `feeAssets` will be rounded down to 0 if `yield * performanceFee < 1e18`.
uint256 feeAssets = Math.mulDiv(_yield, performanceFee, 1e18, Math.Rounding.Down);
uint256 feeShares = _convertToShares(feeAssets, Math.Rounding.Down);

if (feeShares != 0) _mint(feeRecipient, feeShares);
}

/// @dev Override _afterTokenTransfer hook to call IBalanceTracker.balanceTrackerHook()
/// @dev Calling .balanceTrackerHook() passing the address total balance
/// @param from Address sending the amount
Expand Down
8 changes: 8 additions & 0 deletions test/common/FourSixTwoSixAggBase.t.sol
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Expand Up @@ -38,12 +38,14 @@ contract FourSixTwoSixAggBase is EVaultTestBase {
fourSixTwoSixAgg.grantRole(fourSixTwoSixAgg.WITHDRAW_QUEUE_REORDERER_ROLE_ADMIN_ROLE(), deployer);
fourSixTwoSixAgg.grantRole(fourSixTwoSixAgg.STRATEGY_ADDER_ROLE_ADMIN_ROLE(), deployer);
fourSixTwoSixAgg.grantRole(fourSixTwoSixAgg.STRATEGY_REMOVER_ROLE_ADMIN_ROLE(), deployer);
fourSixTwoSixAgg.grantRole(fourSixTwoSixAgg.PERFORMANCE_FEE_MANAGER_ROLE_ADMIN_ROLE(), deployer);

// grant roles to manager
fourSixTwoSixAgg.grantRole(fourSixTwoSixAgg.ALLOCATION_ADJUSTER_ROLE(), manager);
fourSixTwoSixAgg.grantRole(fourSixTwoSixAgg.WITHDRAW_QUEUE_REORDERER_ROLE(), manager);
fourSixTwoSixAgg.grantRole(fourSixTwoSixAgg.STRATEGY_ADDER_ROLE(), manager);
fourSixTwoSixAgg.grantRole(fourSixTwoSixAgg.STRATEGY_REMOVER_ROLE(), manager);
fourSixTwoSixAgg.grantRole(fourSixTwoSixAgg.PERFORMANCE_FEE_MANAGER_ROLE(), manager);

vm.stopPrank();
}
Expand Down Expand Up @@ -71,16 +73,22 @@ contract FourSixTwoSixAggBase is EVaultTestBase {
fourSixTwoSixAgg.getRoleAdmin(fourSixTwoSixAgg.STRATEGY_REMOVER_ROLE()),
fourSixTwoSixAgg.STRATEGY_REMOVER_ROLE_ADMIN_ROLE()
);
assertEq(
fourSixTwoSixAgg.getRoleAdmin(fourSixTwoSixAgg.PERFORMANCE_FEE_MANAGER_ROLE()),
fourSixTwoSixAgg.PERFORMANCE_FEE_MANAGER_ROLE_ADMIN_ROLE()
);

assertTrue(fourSixTwoSixAgg.hasRole(fourSixTwoSixAgg.ALLOCATION_ADJUSTER_ROLE_ADMIN_ROLE(), deployer));
assertTrue(fourSixTwoSixAgg.hasRole(fourSixTwoSixAgg.WITHDRAW_QUEUE_REORDERER_ROLE_ADMIN_ROLE(), deployer));
assertTrue(fourSixTwoSixAgg.hasRole(fourSixTwoSixAgg.STRATEGY_ADDER_ROLE_ADMIN_ROLE(), deployer));
assertTrue(fourSixTwoSixAgg.hasRole(fourSixTwoSixAgg.STRATEGY_REMOVER_ROLE_ADMIN_ROLE(), deployer));
assertTrue(fourSixTwoSixAgg.hasRole(fourSixTwoSixAgg.PERFORMANCE_FEE_MANAGER_ROLE_ADMIN_ROLE(), deployer));

assertTrue(fourSixTwoSixAgg.hasRole(fourSixTwoSixAgg.ALLOCATION_ADJUSTER_ROLE(), manager));
assertTrue(fourSixTwoSixAgg.hasRole(fourSixTwoSixAgg.WITHDRAW_QUEUE_REORDERER_ROLE(), manager));
assertTrue(fourSixTwoSixAgg.hasRole(fourSixTwoSixAgg.STRATEGY_ADDER_ROLE(), manager));
assertTrue(fourSixTwoSixAgg.hasRole(fourSixTwoSixAgg.STRATEGY_REMOVER_ROLE(), manager));
assertTrue(fourSixTwoSixAgg.hasRole(fourSixTwoSixAgg.PERFORMANCE_FEE_MANAGER_ROLE(), manager));
}

function _addStrategy(address from, address strategy, uint256 allocationPoints) internal {
Expand Down
3 changes: 3 additions & 0 deletions test/e2e/BalanceForwarderE2ETest.t.sol
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Original file line number Diff line number Diff line change
Expand Up @@ -39,11 +39,14 @@ contract BalanceForwarderE2ETest is FourSixTwoSixAggBase {
fourSixTwoSixAgg.grantRole(fourSixTwoSixAgg.WITHDRAW_QUEUE_REORDERER_ROLE_ADMIN_ROLE(), deployer);
fourSixTwoSixAgg.grantRole(fourSixTwoSixAgg.STRATEGY_ADDER_ROLE_ADMIN_ROLE(), deployer);
fourSixTwoSixAgg.grantRole(fourSixTwoSixAgg.STRATEGY_REMOVER_ROLE_ADMIN_ROLE(), deployer);
fourSixTwoSixAgg.grantRole(fourSixTwoSixAgg.PERFORMANCE_FEE_MANAGER_ROLE_ADMIN_ROLE(), deployer);

// grant roles to manager
fourSixTwoSixAgg.grantRole(fourSixTwoSixAgg.ALLOCATION_ADJUSTER_ROLE(), manager);
fourSixTwoSixAgg.grantRole(fourSixTwoSixAgg.WITHDRAW_QUEUE_REORDERER_ROLE(), manager);
fourSixTwoSixAgg.grantRole(fourSixTwoSixAgg.STRATEGY_ADDER_ROLE(), manager);
fourSixTwoSixAgg.grantRole(fourSixTwoSixAgg.STRATEGY_REMOVER_ROLE(), manager);
fourSixTwoSixAgg.grantRole(fourSixTwoSixAgg.PERFORMANCE_FEE_MANAGER_ROLE(), manager);
vm.stopPrank();

uint256 initialStrategyAllocationPoints = 500e18;
Expand Down
142 changes: 142 additions & 0 deletions test/e2e/PerformanceFeeE2ETest.t.sol
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Original file line number Diff line number Diff line change
@@ -0,0 +1,142 @@
// SPDX-License-Identifier: GPL-2.0-or-later
pragma solidity ^0.8.0;

import {
FourSixTwoSixAggBase,
FourSixTwoSixAgg,
console2,
EVault,
IEVault,
IRMTestDefault,
TestERC20
} from "../common/FourSixTwoSixAggBase.t.sol";

contract PerformanceFeeE2ETest is FourSixTwoSixAggBase {
uint256 user1InitialBalance = 100000e18;

address feeRecipient;

function setUp() public virtual override {
super.setUp();

uint256 initialStrategyAllocationPoints = 500e18;
_addStrategy(manager, address(eTST), initialStrategyAllocationPoints);

assetTST.mint(user1, user1InitialBalance);

feeRecipient = makeAddr("FEE_RECIPIENT");
}

function testSetPerformanceFee() public {
assertEq(fourSixTwoSixAgg.performanceFee(), 0);

uint256 newPerformanceFee = 3e17;

vm.startPrank(manager);
fourSixTwoSixAgg.setFeeRecipient(feeRecipient);
fourSixTwoSixAgg.setPerformanceFee(newPerformanceFee);
vm.stopPrank();

assertEq(fourSixTwoSixAgg.performanceFee(), newPerformanceFee);
assertEq(fourSixTwoSixAgg.feeRecipient(), feeRecipient);
}

function testHarvestWithFeeEnabled() public {
uint256 newPerformanceFee = 3e17;

vm.startPrank(manager);
fourSixTwoSixAgg.setFeeRecipient(feeRecipient);
fourSixTwoSixAgg.setPerformanceFee(newPerformanceFee);
vm.stopPrank();

uint256 amountToDeposit = 10000e18;

// deposit into aggregator
{
uint256 balanceBefore = fourSixTwoSixAgg.balanceOf(user1);
uint256 totalSupplyBefore = fourSixTwoSixAgg.totalSupply();
uint256 totalAssetsDepositedBefore = fourSixTwoSixAgg.totalAssetsDeposited();
uint256 userAssetBalanceBefore = assetTST.balanceOf(user1);

vm.startPrank(user1);
assetTST.approve(address(fourSixTwoSixAgg), amountToDeposit);
fourSixTwoSixAgg.deposit(amountToDeposit, user1);
vm.stopPrank();

assertEq(fourSixTwoSixAgg.balanceOf(user1), balanceBefore + amountToDeposit);
assertEq(fourSixTwoSixAgg.totalSupply(), totalSupplyBefore + amountToDeposit);
assertEq(fourSixTwoSixAgg.totalAssetsDeposited(), totalAssetsDepositedBefore + amountToDeposit);
assertEq(assetTST.balanceOf(user1), userAssetBalanceBefore - amountToDeposit);
}

// rebalance into strategy
vm.warp(block.timestamp + 86400);
{
FourSixTwoSixAgg.Strategy memory strategyBefore = fourSixTwoSixAgg.getStrategy(address(eTST));

assertEq(eTST.convertToAssets(eTST.balanceOf(address(fourSixTwoSixAgg))), strategyBefore.allocated);

uint256 expectedStrategyCash = fourSixTwoSixAgg.totalAssetsAllocatable() * strategyBefore.allocationPoints
/ fourSixTwoSixAgg.totalAllocationPoints();

vm.prank(user1);
fourSixTwoSixAgg.rebalance(address(eTST));

assertEq(fourSixTwoSixAgg.totalAllocated(), expectedStrategyCash);
assertEq(eTST.convertToAssets(eTST.balanceOf(address(fourSixTwoSixAgg))), expectedStrategyCash);
assertEq((fourSixTwoSixAgg.getStrategy(address(eTST))).allocated, expectedStrategyCash);
}

vm.warp(block.timestamp + 86400);
// mock an increase of strategy balance by 10%
uint256 yield;
{
uint256 aggrCurrentStrategyShareBalance = eTST.balanceOf(address(fourSixTwoSixAgg));
uint256 aggrCurrentStrategyUnderlyingBalance = eTST.convertToAssets(aggrCurrentStrategyShareBalance);
uint256 aggrNewStrategyUnderlyingBalance = aggrCurrentStrategyUnderlyingBalance * 11e17 / 1e18;
yield = aggrNewStrategyUnderlyingBalance - aggrCurrentStrategyUnderlyingBalance;
assetTST.mint(address(eTST), yield);
eTST.skim(type(uint256).max, address(fourSixTwoSixAgg));
}

uint256 expectedPerformanceFee = yield * fourSixTwoSixAgg.performanceFee() / 1e18;
uint256 expectedPerformanceFeeShares = fourSixTwoSixAgg.convertToShares(expectedPerformanceFee);

// harvest
vm.prank(user1);
fourSixTwoSixAgg.harvest(address(eTST));

assertEq(fourSixTwoSixAgg.balanceOf(feeRecipient), expectedPerformanceFeeShares);

// full withdraw, will have to withdraw from strategy as cash reserve is not enough
{
uint256 amountToWithdraw = fourSixTwoSixAgg.balanceOf(user1);
uint256 totalAssetsDepositedBefore = fourSixTwoSixAgg.totalAssetsDeposited();
uint256 aggregatorTotalSupplyBefore = fourSixTwoSixAgg.totalSupply();
uint256 user1AssetTSTBalanceBefore = assetTST.balanceOf(user1);
uint256 expectedAssetTST = fourSixTwoSixAgg.convertToAssets(fourSixTwoSixAgg.balanceOf(user1));

vm.prank(user1);
fourSixTwoSixAgg.redeem(amountToWithdraw, user1, user1);

assertApproxEqAbs(fourSixTwoSixAgg.totalAssetsDeposited(), totalAssetsDepositedBefore - expectedAssetTST, 1);
assertEq(fourSixTwoSixAgg.totalSupply(), aggregatorTotalSupplyBefore - amountToWithdraw);
assertApproxEqAbs(assetTST.balanceOf(user1), user1AssetTSTBalanceBefore + expectedAssetTST, 1);
}

// full withdraw of recipient fees
{
uint256 totalAssetsDepositedBefore = fourSixTwoSixAgg.totalAssetsDeposited();
uint256 assetTSTBalanceBefore = assetTST.balanceOf(feeRecipient);

uint256 feeShares = fourSixTwoSixAgg.balanceOf(feeRecipient);
uint256 expectedAssets = fourSixTwoSixAgg.convertToAssets(feeShares);
vm.prank(feeRecipient);
fourSixTwoSixAgg.redeem(feeShares, feeRecipient, feeRecipient);

assertApproxEqAbs(fourSixTwoSixAgg.totalAssetsDeposited(), totalAssetsDepositedBefore - expectedAssets, 1);
assertEq(fourSixTwoSixAgg.totalSupply(), 0);
assertApproxEqAbs(assetTST.balanceOf(feeRecipient), assetTSTBalanceBefore + expectedAssets, 1);
}
}
}
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