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Actions edited this page Feb 19, 2026 · 1 revision

Covered Vault Integration (Morpho Adapter Model)

Overview

This page documents the adapter-based Morpho integration pattern used for insured vaults.

Core idea:

  • users choose between an uninsured base vault and an insured covered vault,
  • the covered vault allocates through a Catalysis adapter,
  • withdrawal-time shortfall is optionally repaired through Coverage claim payout.

Components

Covered Vault (Morpho V2)

  • user-facing insured vault,
  • accrues premium via management-fee-like mechanism,
  • allocates to the adapter.

CatalysisCoverAdapter

  • Morpho adapter implementation,
  • allocates/deallocates into the base vault,
  • tracks reference accounting for shortfall detection,
  • calls Coverage claim path on shortfall.

Base Vault (Morpho V1/V2)

  • underlying investment destination,
  • may also serve uninsured users directly.

Policy Actor Mapping for This Integration

Typical settings in PolicyManager.requestCoverage(...):

  • buyer: covered vault or adapter contract,
  • claimer: adapter,
  • beneficiary: adapter,
  • bindPolicyHook: adapter.

Recommended token alignment:

  • set policy payoutToken to the base-vault underlying asset (for direct make-whole transfer),
  • otherwise adapter must convert payout token into the withdrawal asset before forwarding.

This allows the adapter to receive payout and complete atomic make-whole flow.

Flow 1: Deposit

sequenceDiagram
    participant User
    participant CV as Covered Vault
    participant ADP as Cover Adapter
    participant BV as Base Vault

    User->>CV: deposit
    CV->>ADP: allocate
    ADP->>ADP: track principal/reference
    ADP->>BV: deposit
    BV-->>ADP: shares
    ADP-->>CV: accounting update
    CV-->>User: covered shares minted
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Flow 2: Withdrawal (No Shortfall)

sequenceDiagram
    participant User
    participant CV as Covered Vault
    participant ADP as Cover Adapter
    participant BV as Base Vault

    User->>CV: withdraw/redeem
    CV->>ADP: deallocate
    ADP->>BV: withdraw
    BV-->>ADP: assets_received
    ADP->>ADP: compare against covered reference
    Note over ADP: no shortfall
    ADP-->>CV: transfer assets
    CV-->>User: transfer assets
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Flow 3: Withdrawal (With Shortfall)

sequenceDiagram
    participant User
    participant CV as Covered Vault
    participant ADP as Cover Adapter
    participant BV as Base Vault
    participant CM as ClaimManager

    User->>CV: withdraw/redeem
    CV->>ADP: deallocate
    ADP->>BV: withdraw
    BV-->>ADP: assets_received
    ADP->>ADP: compute shortfall
    Note over ADP: shortfall = assets_deposited - assets_received
    ADP->>CM: fileClaim(policyId, shortfall, evidence, data)
    CM-->>ADP: payout (if approved)
    ADP-->>CV: transfer assets + payout
    CV-->>User: transfer assets
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Notes:

  • Some external docs call this fileAndResolveClaim(...).
  • In current Coverage contracts, ClaimManager.fileClaim(...) is atomic (file + resolve).

Flow 4: Migration (Base -> Covered)

sequenceDiagram
    participant User
    participant M as Migrator
    participant BV as Base Vault
    participant CV as Covered Vault

    User->>M: migrate()
    M->>BV: redeem user position
    BV-->>M: underlying assets
    M->>CV: deposit on behalf of user
    CV-->>User: covered shares minted
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Coverage/Core Touchpoints in This Model

  • policy request: PolicyManager.requestCoverage(...),
  • policy binding: CoverPool.bindPolicyForRequest(...),
  • premium routing: PremiumCollector -> PremiumManager -> RewardsManager,
  • claim execution: ClaimManager.fileClaim(...) -> SlashingManager.executeSlashing(...).

Related Pages

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