feat: yield bearing bridge by waelsy123 · Pull Request #177 · OffchainLabs/token-bridge-contracts

waelsy123 · 2026-02-06T16:59:50Z

add master vault
add YBB gateways and integrate that with the bridge
happy path e2e test for deposit
cover master vault with tests

…contract size

…reator contract size

gzeoneth

still think the fee toggle just add complexity without good usecase

gzeoneth · 2026-02-09T16:31:09Z

+        address masterVaultRoles,
+        address masterVaultBeaconProxyFactory


breaks CREATE2-like deterministic deployment behavior as these new param are not part of _getL1Salt and _getL2Salt; we should consider to deploy these contract in the factory instead of taking untrusted input

gzeoneth · 2026-02-09T16:38:14Z

+ * @title Layer 1 Gateway contract for bridging standard ERC20s with YBB enabled
+ * @notice Escrows funds into MasterVaults for yield bearing bridging.
+ */
+contract L1YbbERC20Gateway is L1ERC20Gateway {


L2 token created with underlying token decimals, but MV share have +6 decimals and L2 token represent MV share instead of underlying so we need to adjust somewhere

gzeoneth · 2026-02-09T16:44:02Z

+    ///         - Set the rebalance cooldown
+    bytes32 public constant GENERAL_MANAGER_ROLE = keccak256("GENERAL_MANAGER_ROLE");
+    /// @notice The fee manager can:
+    ///         - Toggle performance fees on/off


Consider to take this away from FEE_MANAGER_ROLE because the current implementation allow reseting the high water mark by toggling the fee off and on. If the fee manager can temporally manipulate sub-vault price it can drain the vault too.

gzeoneth · 2026-02-09T16:47:59Z

+                    .mulDiv(1e18, totalSupply(), MathUpgradeable.Rounding.Up)
+            );
+        } else {
+            _distributePerformanceFee();


this can revert (if subvault.withdraw revert), preventing disabling fee when subvault have withdrawal paused

gzeoneth · 2026-02-09T16:51:47Z

+
+        __ReentrancyGuard_init();
+        __Pausable_init();
+        __MasterVaultRoles_init();


local roles are not initialized and no one have local default admin role to grant roles

gzeoneth · 2026-02-09T17:04:06Z

+ * @title Layer 1 Gateway contract for bridging Custom ERC20s with YBB enabled
+ * @notice Escrows funds into MasterVaults for yield bearing bridging.
+ */
+contract L1YbbCustomGateway is L1CustomGateway {


Lack fee token (Orbit) variant, same for the L1YbbERC20Gateway

gzeoneth · 2026-02-09T17:10:10Z

+        uint256 totalAssetsUp = _totalAssetsLessProfit(MathUpgradeable.Rounding.Up);
+        uint256 totalAssetsDown = _totalAssetsLessProfit(MathUpgradeable.Rounding.Down);
+        uint256 idleTargetUp =
+            totalAssetsUp.mulDiv(1e18 - targetAllocationWad, 1e18, MathUpgradeable.Rounding.Up);
+        uint256 idleTargetDown =
+            totalAssetsDown.mulDiv(1e18 - targetAllocationWad, 1e18, MathUpgradeable.Rounding.Down);
+        uint256 idleBalance = asset.balanceOf(address(this));


inconsistent use of _totalAssetsLessProfit and asset.balanceOf(address(this))

can you explain more what you mean? i'm not sure i follow

we're changing rebalancing to include profit assets too fwiw

http://github.com/OffchainLabs/token-bridge-contracts/pull/177/commits/520a37194cdcda300b3749b8624fc9a6bb9cbe62

gzeoneth · 2026-02-09T17:13:59Z

+        if (idleAssets < assets) {
+            uint256 assetsToWithdraw = assets - idleAssets;
+            // slither-disable-next-line unused-return
+            subVault.withdraw(assetsToWithdraw, address(this), address(this));


also lack subvault slippage check tho idk what is a good fix

one of the assumption we have here is subvault should be erc4626 compliant, which require subvault.withdraw() to transfer exactly the requested assets a nd if a subVault misbehaves safeTransfer method on the next line would revert anyway

The fact that it return EXACT mean rounding error are lost, while the user withdrawing will get full value. This should be fine bcz most vault have share value much lower than 1 wei, but using redeem can be safer (so the master vault get the rounding assets).

E.g. if 1 share = 100 wei, withdraw(1) burn 1 share and receive 1 wei, losing 99 wei

i think we should leave this alone. as you say most vaults have low share values.

even if the value of the shares is high it's still an expensive thing to exploit to any meaningful degree because you'd have to initiate a separate withdrawal tx for every single subVault share you want to get rounded off.

there's not really a good way to profit from exploiting this unless you hold a non negligible share of the subvault or something like that

losing 1 subVault share's worth of assets on a rebalance, redeem, or fee distribution is acceptable imo

gzeoneth · 2026-02-09T17:19:15Z

+    /// @notice Set the target allocation of assets to keep in the subvault
+    /// @dev    Target allocation must be between 0 and 1e18 (100%).
+    /// @param  _targetAllocationWad The target allocation in wad (1e18 = 100%)
+    function setTargetAllocationWad(uint64 _targetAllocationWad)


gzeoneth · 2026-02-09T17:20:00Z

+        onlyGateway
+        returns (uint256 shares)
+    {
+        shares = _convertToSharesRoundDown(assets);


should check shares != 0

imo we should implement an optional slippage check in the gateways

we could pass it by repurposing extraData which would leave the existing function signature unchanged. we could also introduce a new function which is probably a bit better

…erance

ybb gateway review

…ppageTolerance

* handle fee on transfer tokens * document underlying token requirements * do not support FoT * test FoT

This reverts commit 692bdd7.

…erance YBB Gateways Optional Slippage Tolerance

YBB Happy E2E Tests

Revert "YBB Happy E2E Tests"

* deposit side of ybb happy case e2e tests * check mastervaultfactory set on custom gateway * ybb withdrawal e2e test * slippage path e2e tests * dry out ybb e2e tests * optimize absYbbNonReentrant * Revert "optimize absYbbNonReentrant" This reverts commit 692bdd7.

gzeoneth

Looking pretty good, some minor comments

gzeoneth · 2026-04-02T19:17:24Z

+        if (idleAssets < assets) {
+            uint256 assetsToWithdraw = assets - idleAssets;
+            // slither-disable-next-line unused-return
+            subVault.withdraw(assetsToWithdraw, address(this), address(this));


The fact that it return EXACT mean rounding error are lost, while the user withdrawing will get full value. This should be fine bcz most vault have share value much lower than 1 wei, but using redeem can be safer (so the master vault get the rounding assets).

E.g. if 1 share = 100 wei, withdraw(1) burn 1 share and receive 1 wei, losing 99 wei

Co-authored-by: gzeon <hng@offchainlabs.com>

godzillaba

we need to confirm whether we need token name+symbol prefix+suffix

waelsy123 added 12 commits February 4, 2026 12:03

test ci

11e3993

update foundry.toml

4be3547

add master vault contracts

8bb6035

fixup! add master vault contracts

fb019c4

fix: slither reentrancy in Mastervault

e2edd95

test: add mastervault test util contracts

2fe0126

test: add mastervault tests

10a8d51

add yield bearing gateways

244c278

fixup! add yield bearing gateways

2952945

add L1YbbBridgeDeployer lib

3f643a0

introduce L1GatewayDeployer lib to reduce L1AtomicTokenBridgeCreator …

3cef66b

…contract size

fixup! introduce L1GatewayDeployer lib to reduce L1AtomicTokenBridgeC…

3fc04d3

…reator contract size

waelsy123 requested review from godzillaba and gzeoneth and removed request for gzeoneth February 6, 2026 16:59

test: e2e Ybb deposit test

e114255

gzeoneth requested changes Feb 9, 2026

View reviewed changes

waelsy123 and others added 12 commits February 10, 2026 16:28

fix: use vault shares decimals

5597e1f

fix: initiate local roles

b26c54c

fix: check 0 shares

ce02657

fix: add event TargetAllocationUpdated

4aadcf0

rebalance affects profit assets too

520a371

test: more rebalance tests

1f3e22c

fix: remove toggle perf fee

6bf9f42

fixup! test: more rebalance tests

2b0c724

fix: use safeIncreaseAllowance instead of safeApprove

de28387

refactor: use CREATE2 determinstic deployments

6e0107d

ybb fee-token gateways

0f8d4d3

fix: defaultSubVault mint extra shares

3f49a2a

godzillaba added 9 commits March 24, 2026 16:21

remove unused imports

0726095

additional outbound transfer function with slippage tolerance

f6f7877

fix test_outboundTransferCustomRefund_revert_ExtraDataDisabled

684110b

test new slippage tolerance

52ff90c

more helpful reverts

a20dfb5

Merge branch 'ha/ybb-gateway-review' into ha/ybb-gateway-slippage-tol…

904da87

…erance

slither fix

2558467

Merge pull request #193 from OffchainLabs/ha/ybb-gateway-review

23f2241

ybb gateway review

add slippage path to router

52e692b

godzillaba mentioned this pull request Mar 26, 2026

YBB gateway slippage tolerance e2e test #196

Merged

godzillaba added 8 commits March 26, 2026 11:25

update signatures

7aa0f58

update natspec

ca7f4c4

add nonReentrant to AbsYbbGateway.outboundTransferCustomRefundWithSli…

d63c623

…ppageTolerance

MasterVault fee on transfer token handling (#195)

658534a

* handle fee on transfer tokens * document underlying token requirements * do not support FoT * test FoT

optimize absYbbNonReentrant

692bdd7

Revert "optimize absYbbNonReentrant"

83e4885

This reverts commit 692bdd7.

Merge pull request #194 from OffchainLabs/ha/ybb-gateway-slippage-tol…

9e487fe

…erance YBB Gateways Optional Slippage Tolerance

Merge branch 'feat/yield-bearing-bridge-full' into ha/ybb-e2e-test

912f97a

godzillaba mentioned this pull request Mar 30, 2026

YBB address old review comment #198

Merged

godzillaba added 5 commits March 31, 2026 09:16

address old review comment (#198)

4395f53

Merge pull request #188 from OffchainLabs/ha/ybb-e2e-test

55c43d6

YBB Happy E2E Tests

Revert "YBB Happy E2E Tests"

43da742

Merge pull request #199 from OffchainLabs/revert-188-ha/ybb-e2e-test

a6748b8

Revert "YBB Happy E2E Tests"

gzeoneth reviewed Apr 2, 2026

View reviewed changes

godzillaba and others added 2 commits April 3, 2026 09:49

Update contracts/tokenbridge/ethereum/L1AtomicTokenBridgeCreator.sol

9ea8fd9

Co-authored-by: gzeon <hng@offchainlabs.com>

fix typo

92d34dc

godzillaba requested review from godzillaba and gzeoneth April 3, 2026 16:29

godzillaba requested changes Apr 3, 2026

View reviewed changes

		address masterVaultRoles,
		address masterVaultBeaconProxyFactory

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waelsy123 commented Feb 6, 2026 • edited Loading Uh oh! There was an error while loading. Please reload this page.

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waelsy123 commented Feb 6, 2026 •

edited

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