Morpho Midnight

Midnight is a non-custodial fixed-rate lending protocol implemented for the Ethereum Virtual Machine. It is organized around isolated, immutable, permissionlessly created markets with fixed-maturity. Lending and borrowing are implemented through the trading of credit and debt units, whose payoff structure is analogous to that of zero-coupon obligations, settling at the market's maturity. Participants trade by posting or consuming offers that do not lock capital and source liquidity only at settlement, allowing makers to quote across multiple markets at once. Markets can range from single to multi-collateral configurations, and gates can be used to implement access-control policies.

Prize Distribution and Scoring

• Total Prize Pool: Up to $400,000

The total pot size depends on the highest severity of valid findings:

• If one or more valid Medium severity findings are found, the total pot size is $150,000.
• If one or more valid High severity findings are found, the total pot size is $400,000.

$20,000 of the total prize pool is reserved for Low Severity & Informational findings. These reports are judged on quality, with researchers ranked 1st-5th for prize allocation.

• Scoring is described on the competition scoring page.

Severity Definition

This competition uses Cantina's standard severity definitions. See the competition finding severity criteria.

Documentation

• Midnight whitepaper
• NatSpec and in-code documentation / comments

MidnightBundles

MidnightBundles is a periphery contract for Midnight that works as a convenience layer for integrators. It lets users compose multiple protocol actions - taking offers, supplying or withdrawing collateral, repaying debt - into a single atomic transaction.

Midnight Bundles cover:

• Taking multiple offers. Users pass a list of valid offers and a target in assets or units. The bundler walks the list and takes offers one by one until the target is met. For each offer, it tries to take the minimum of:
  • the amount still needed;
  • the amount still available;
  • the amount passed as an argument for this offer.
• Collateral + takes. Batch takes are paired with collateral moves in the direction that makes sense for the side: buyers withdraw collateral; sellers supply collateral.
• Repay + withdraw. Repay debt and withdraw collateral in one transaction.

Scope

• Repository: morpho-org/midnight
• Commit: 7538c438513622721e23a94676b93a335b83dace
• Files / directories in scope: src

Build Instructions

See the repository README for build, setup, and testing instructions.

Mandatory POC Rule

• The mandatory POC rule applies to this competition. All High and Medium findings require a valid coded POC before the end of the competition.
• A basic POC test with the initial setup is available at test/BaseTest.sol for researchers to build their POC on top of.

Out of Scope

• Previous security reports / audits
• Expected behaviors such as trusted / untrusted roles
• Accepted risks

Contact Us

For any issues or concerns regarding this competition, please reach out to the Cantina core team through the Cantina Discord.