Morpho Blue simulation with VERBS

Simulation implemented using VERBS

Installation & Running

This repo uses hatch for dependency management. The simulation can be run using

hatch run examples:morpho <ALCHEMY-KEY>

where <ALCHEMY-KEY> is a API key for Alchemy.

You can also use the --help argument to see additional arguments to the scripts.

Simulation

The script lltv_recommender.py runs the following simulation:

• Fork mainnet at block 19163600.
• Create a market on Morpho Blue with
  • LLTV = 0.9
  • Collateral asset: WETH
  • Borrow asset: DAI
  • Oracle: price feed is retrieved from Uniswap pool. Oracle implemented here
• A liquidity provider provides DAI to the above market.
• Borrowers borrow from the market.
• A trader trades in Uniswap so that the price from Uniswap follows a Geometric Brownian motion.
• A liquidator liquidates unhealthy positions.

Note

The above simulation runs from a pre-generated cache of the EVM forked at block 19163600 (see the documentation). In order to generate a simulation starting from a different block, the function init_cache(...) initialises the cache at the specified block.

Simulation results are saved in results/.