Looped exit works

Author: mikalsande

src/strategy/MorphoLoopStrategy.sol

@@ -472,17 +472,16 @@ contract MorphoLoopStrategy is
         console.log("=== onMorphoRepay callback ===");
         console.log("Repaid assets (WETH needed):", repaidAssets);
 
-        // 1. Validate caller is Morpho
-        if (msg.sender != address(MORPHO)) revert UnauthorizedCallback();
-
-        // 2. Validate callback context
+        // 1. Validate callback context
         CallbackContext memory ctx = _callbackContext;
         if (ctx.callBackFrom == address(0)) revert NoActiveContext();
         if (ctx.callbackType != MorphoCallback.OnMorphoRepay) revert InvalidMorphoCallback();
 
+        // 2. Validate caller is the callForwarder (callback is forwarded from forwarder)
+        if (msg.sender != ctx.callBackFrom) revert UnauthorizedCallback();
+
         // 3. Decode callback data
         RepayCallbackData memory cbData = abi.decode(data, (RepayCallbackData));
-        IStrategyCallForwarder callForwarder = IStrategyCallForwarder(cbData.callForwarder);
 
         // 4. Get current collateral amount and withdraw ALL from Morpho
         Position memory pos = MORPHO.position(MARKET_ID, cbData.callForwarder);
@@ -526,11 +525,18 @@ contract MorphoLoopStrategy is
             console.log("Transferred remaining wstETH to callForwarder");
         }
 
-        // 9. Approve WETH to Morpho for repayment
-        WETH.approve(address(MORPHO), repaidAssets);
-        console.log("Approved WETH to Morpho for repayment");
+        // 9. Transfer WETH to callForwarder (Morpho pulls from msg.sender which is forwarder)
+        WETH.transfer(cbData.callForwarder, repaidAssets);
+        console.log("Transferred WETH to callForwarder for Morpho repayment");
+
+        // 10. Approve WETH from callForwarder to Morpho
+        IStrategyCallForwarder(cbData.callForwarder).doCall(
+            address(WETH),
+            abi.encodeWithSelector(WETH.approve.selector, address(MORPHO), repaidAssets)
+        );
+        console.log("Approved WETH to Morpho from callForwarder");
 
-        // Morpho will pull the WETH after this callback returns
+        // Morpho will pull the WETH from callForwarder after this callback returns
         console.log("=== onMorphoRepay callback complete ===");
     }
 
@@ -581,8 +587,9 @@ contract MorphoLoopStrategy is
 
         // 4. Execute repay with callback (repays ALL debt using shares)
         // The callback will withdraw collateral, swap to WETH, and approve for repayment
+        // NOTE: We call via callForwarder so Morpho calls back to forwarder, which forwards to strategy
         if (pos.borrowShares > 0) {
-            console.log("Calling Morpho.repay with callback");
+            console.log("Calling Morpho.repay with callback via callForwarder");
             callForwarder.doCall(
                 address(MORPHO),
                 abi.encodeCall(

src/strategy/StrategyCallForwarder.sol

@@ -1,11 +1,12 @@
-// SPDX-License-Identifier: GPL-3.0
+// SPDX-License-Identifier: MIT
 pragma solidity 0.8.30;
 
 import {OwnableUpgradeable} from "@openzeppelin/contracts-upgradeable/access/OwnableUpgradeable.sol";
 import {Initializable} from "@openzeppelin/contracts-upgradeable/proxy/utils/Initializable.sol";
 import {ReentrancyGuardUpgradeable} from "@openzeppelin/contracts-upgradeable/utils/ReentrancyGuardUpgradeable.sol";
 import {Address} from "@openzeppelin/contracts/utils/Address.sol";
 import {
+    IMorphoRepayCallback,
     IMorphoSupplyCallback,
     IMorphoSupplyCollateralCallback
 } from "lib/morpho-blue/src/interfaces/IMorphoCallbacks.sol";
@@ -16,7 +17,8 @@ contract StrategyCallForwarder is
     ReentrancyGuardUpgradeable,
     OwnableUpgradeable,
     IStrategyCallForwarder,
-    IMorphoSupplyCollateralCallback
+    IMorphoSupplyCollateralCallback,
+    IMorphoRepayCallback
 {
     constructor() {
         _disableInitializers();
@@ -76,4 +78,15 @@ contract StrategyCallForwarder is
         // Forward the callback to the owner (strategy)
         Address.functionCall(owner(), callData);
     }
+
+    function onMorphoRepay(uint256 assets, bytes calldata data) external {
+        // TODO: Add some form of checking.
+        // if (msg.sender != address(MORPHO)) revert UnauthorizedCallback();
+
+        // Forward the callback to the owner (strategy)
+        bytes memory callData = abi.encodeCall(IMorphoRepayCallback.onMorphoRepay, (assets, data));
+
+        // Forward the callback to the owner (strategy)
+        Address.functionCall(owner(), callData);
+    }
 }

test/integration/morpho-loop.test.sol

@@ -508,6 +508,8 @@ contract MorphoLoopStrategyTest is StvStrategyPoolHarness {
         assertGt(posBefore.collateral, 0, "Should have collateral");
         assertGt(posBefore.borrowShares, 0, "Should have debt");
 
+        // Check Lido position before
+
         // 3. Execute exit with 1% slippage tolerance
         MorphoLoopStrategy.LoopExitParams memory exitParams = MorphoLoopStrategy.LoopExitParams({
             slippageBps: 100 // 1%
@@ -516,7 +518,9 @@ contract MorphoLoopStrategyTest is StvStrategyPoolHarness {
         vm.prank(USER1);
         bytes32 requestId = morphoStrategy.requestExitByWsteth(0, abi.encode(exitParams));
 
-        // 4. Verify position is closed
+        // Check Lido position after.
+
+        // 4. Verify Morpho position is closed
         Position memory posAfter = morpho.position(marketId, user1StrategyCallForwarder);
         console.log("Position after exit:");
         console.log("  Collateral:", posAfter.collateral);
@@ -527,16 +531,37 @@ contract MorphoLoopStrategyTest is StvStrategyPoolHarness {
 
         // 5. Verify withdrawal request created
         console.log("Withdrawal request ID:", uint256(requestId));
+        assertEq(uint256(requestId), 1, "withdraw request ID should be 1");
         // Note: requestId will be bytes32(0) if pool withdrawal wasn't needed
+
+        // Get the call forwarder address for USER1.
+        IStrategyCallForwarder callForwarder = morphoStrategy.getStrategyCallForwarderAddress(USER1);
+
+        // Check that we have a pending withdrawal request in the withdrawal queue.
+        uint256[] memory withdrawals = withdrawalQueue.withdrawalRequestsOf(USER1);
+        assertEq(withdrawals.length, 1, "withdrawal queue should have 1 withdrawal request");
+        assertEq(withdrawals[0], 1, "the withdrawal should have ID 1");
+
+        // Withdrawal queue data
+        WithdrawalQueue.WithdrawalRequestStatus memory withdrawalStatus = withdrawalQueue.getWithdrawalStatus(
+            withdrawals[0]
+        );
+        console.log("amountOfStv: ", withdrawalStatus.amountOfStv);
+        console.log("amountOfStethShares: ", withdrawalStatus.amountOfStethShares);
+        console.log("amountOfAssets: ", withdrawalStatus.amountOfAssets);
+        console.log("owner: ", withdrawalStatus.owner);
+        console.log("timestamp: ", withdrawalStatus.timestamp);
+        console.log("isFinalized: ", withdrawalStatus.isFinalized);
+        console.log("isClaimed: ", withdrawalStatus.isClaimed);
     }
 
     /**
-     * @notice Test that onMorphoRepay reverts when called by non-Morpho
+     * @notice Test that onMorphoRepay reverts when called without active context
      */
-    function test_revert_onMorphoRepay_only_morpho() public {
-        console.log("\n=== Test: onMorphoRepay Only Morpho ===");
+    function test_revert_onMorphoRepay_no_context() public {
+        console.log("\n=== Test: onMorphoRepay No Context ===");
 
-        vm.expectRevert(MorphoLoopStrategy.UnauthorizedCallback.selector);
+        vm.expectRevert(MorphoLoopStrategy.NoActiveContext.selector);
         morphoStrategy.onMorphoRepay(1 ether, "");
     }
 
@@ -546,9 +571,7 @@ contract MorphoLoopStrategyTest is StvStrategyPoolHarness {
     function test_revert_exit_no_position() public {
         console.log("\n=== Test: Exit Reverts With No Position ===");
 
-        MorphoLoopStrategy.LoopExitParams memory exitParams = MorphoLoopStrategy.LoopExitParams({
-            slippageBps: 100
-        });
+        MorphoLoopStrategy.LoopExitParams memory exitParams = MorphoLoopStrategy.LoopExitParams({slippageBps: 100});
 
         vm.prank(USER1);
         vm.expectRevert(MorphoLoopStrategy.InsufficientCollateral.selector);