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Only increase total assets #12

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QGarchery
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A very minimal suggestion instead of #5, with the idea that it always prevents share price from decreasing directly. So:

  • interest won't accrue after a loss, until there is more interest to accrue than the loss. Notably, the loss is socialized and covered by the interest. This is a non trivial change and may have unforeseen consequences. For example we could imagine users leaving the vault because they have no gain in the meantime, with the risk of a bank run at the worst possible time.
  • funds can be recovered (compared to Lost assets (no share price decrease) #5). For example, if a market is force removed, and then later re-added, users have no loss and the lost assets are not recorded on the vault

This PR is more meant as food for thought rather than an actual suggestion. The main issue being raised here is the recovery of funds in case of a market that is force-removed

@QGarchery QGarchery requested a review from MathisGD August 13, 2024 13:23
@QGarchery QGarchery self-assigned this Aug 13, 2024
@MathisGD
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Have you looked at: https://github.com/morpho-org/metamorpho-private/pull/4/files ?

This has also been discussed here: #5 (comment)

@QGarchery
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QGarchery commented Aug 13, 2024

This has also been discussed here: #5 (comment)

Oops, no I did not see this comment. It seems like you already went though the same thought process. One thing remaining that is not discussed I think is the fact that the solution in #5 prevents funds from being recovered (see the description of this PR). Do you think we can get that back in #5 ?

EDIT: Note that I'm not talking about covering the "hole" in general, but really only about the scenario with a force removed market that is re-added

@MathisGD
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MathisGD commented Aug 13, 2024

In 5, funds can be recovered through a donation (typically from the vault manager).

It does not clean lostAssets but we agreed that it was ok (see #6)

EDIT: just saw your edit

indeed it behaves fundamentally differently in this case

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Closing as the main point was the discussion on the recovery of funds after a forced market removal

@QGarchery QGarchery closed this Aug 14, 2024
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