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Safe offer logic guidelines

Gatekeeping

Offer logic should only be called by Mangrove

External functions of an offer logic, makerExecute and makerPosthook, should only be callable if msg.sender is Mangrove. Maker contracts implemented with the strat library take care of this by construction.

Public functions that are called by offer logic

It is sometimes convenient to define public function that can also be called internally during offer logic's execution. If such function needs to be restricted to privileged access, one cannot simply use require(msg.sender == admin_address) as msg.sender will be Mangrove when the function is called internally by the offer logic. Using a guard of the form require(msg.sender == admin_address || msg.sender == mangrove_address) will work though (notice that internal call preserves msg.sender of makerExecute).

Token amounts

Outbound and inbound tokens may have different decimals. Mangrove always use raw amounts, so offer do not have directly a price but a wants and a gives both expressed in raw token amounts.

Which part of your Maker contract should not be in the offer logic?

Functions in offer logic are automatically executed by Mangrove, who is then msg.sender. Beware that taker is not necessarily tx.origin, as a contract could be acting as a taker. Importantly, make sure that your logic is not exploitable by context manipulation, which could force your offer to fail.

How to factor your offer logic between makerExecute and makerPosthook.

Must be in maker execute:

  • decision to renege on trade
  • every moves that are needed to bring liquidity promised to the taker.

The offer logic in makerExecute should be gas bounded since an out-of-gas exception will lead to Mangrove transferring your whole provision to the taker as a bounty.

Must be in makerPoshtook:

  • any write action to the offer list to which the currently executed offer belongs.
  • any logging of a revert reason raised during makerExecute. The (truncated to a bytes32) reason is passed to makerPosthook in the makerData field.

Should be in makerPosthook:

  • actions that are not gas bounded, such as posting or updating an offer on Mangrove (unless you have a clear pivotId).
  • in general, calls which may raise an exception that should not cause the current trade execution to fail.
  • offer logic that revert during makerPosthook do not abort trade and Mangrove will emit a PosthookFail log.

Hooks that make your contract dev friendly

Activate functions

The activate(IERC20[] calldata tokens) public function of all strat library based maker contracts, enables one to perform all maker contract centric approvals, for the provided token list, in a single transaction. If your implementation requires more approval from the maker contract you should add them by overriding the __activate__ hook. For instance assume your offer logic requires depositing asset on a lender's pool and the corresponding function requires an approval from the depositor, either you should approve the lender each time your logic deposits, or if you would rather approve once for all (with infinite approval), then you should add the approval to activate using:

__activate__(IERC20 token) internal override {
super.__activate__(token); // perform all pre defined approvals
token.approve({spender: <lender>, owner: address(this), amount:type(uint).max});
}

The activate(IERC20[] calldata tokens) function follows the same pattern for custom routers (see router activation).

cascading activation

The activate function's default behavior is to perform the maker contract's activations and then ask its router (if any) to perform its own.

Checklist functions

checkList(IERC20[] calldata tokens) is a dev friendly view function that reverts whenever the tokens list contains an ERC20 token that msg.sender cannot yet use to trade using the maker contract, typically because it requires an approval from msg.sender. The revert reason should be documented or as self contained as possible. Following the activate pattern, this function can be augmented with additional checks, using the __checkList__ hook.

Router use a similar function to verify that maker contract can source tokens via the router (see router checklist).

cascading checkList

The checkList function's default behavior is to perform maker contract's checkList and then ask its router (if any) to perform its own.

Keepers as offer maintainers

A failing offer should not be the consequence of a bug in your offer logic, but rather be a feature of it. Raising an exception during makerExecute is the proper way to cancel a trade if your logic deems it necessary. You should customize the last look hook for this, in order to fail early in the trade and save you money. For instance, if your logic relies on funds being on a lender, and a price oracle as a relative protection against arbitrage, you should check the oracle before redeeming the funds from the lender.