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

waelsy123 · 2026-02-06T16:59:50Z

a full feat branch for yield bearing bridge, this PR replace #126 & #118

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

contracts/tokenbridge/ethereum/L1AtomicTokenBridgeCreator.sol

+        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

contracts/tokenbridge/ethereum/gateway/L1YbbERC20Gateway.sol

+ * @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

contracts/tokenbridge/libraries/vault/MasterVaultRoles.sol

+    ///         - 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

contracts/tokenbridge/libraries/vault/MasterVault.sol

+                    .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

contracts/tokenbridge/libraries/vault/MasterVault.sol

+
+        __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

contracts/tokenbridge/ethereum/gateway/L1YbbCustomGateway.sol

+ * @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

contracts/tokenbridge/libraries/vault/MasterVault.sol

+        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

contracts/tokenbridge/libraries/vault/MasterVault.sol

+        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

gzeoneth · 2026-02-09T17:19:15Z

contracts/tokenbridge/libraries/vault/MasterVault.sol

+    /// @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

contracts/tokenbridge/libraries/vault/MasterVault.sol

+        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

godzillaba

still reviewing just wanted to leave early comments

godzillaba · 2026-02-18T15:10:53Z

contracts/tokenbridge/libraries/vault/MasterVaultFactory.sol

+        MasterVaultRoles _rolesRegistry = new MasterVaultRoles();
+        _rolesRegistry.initialize(_admin);
+        rolesRegistry = _rolesRegistry;


the roles registry should be behind a Transparent proxy

godzillaba · 2026-02-18T15:19:01Z

contracts/tokenbridge/ethereum/L1AtomicTokenBridgeCreator.sol

+                l1Deployment.standardGateway = ybbResult.standardGateway;
+                l1Deployment.customGateway = ybbResult.customGateway;
+            } else {
+                // Delegate standard gateway deployment to library


i feel like we might be able to rework this external lib to make this diff easier to verify.

i wonder if we could simply copy paste all the existing code into a single external library function instead of breaking it up?

like copy-paste all createTokenBridge method into the ext lib? it was a challenging task to move some of this logic out of this contract while trying to reduce the diff. first I tried to have only ybb related stuff to be in the ext lib but then I ran into stack too deep issues. so I decided to move the deployment logic into that library

godzillaba · 2026-02-18T15:24:16Z

contracts/tokenbridge/ethereum/gateway/L1OrbitYbbCustomGateway.sol

+    function _setMasterVaultFactory(address _masterVaultFactory) internal {
+        require(_masterVaultFactory != address(0), "BAD_MASTER_VAULT_FACTORY");
+        masterVaultFactory = _masterVaultFactory;
+    }


bit of a nit, but even though it's a sortof convention in this codebase idk if an address(0) check is very useful

if we keep it though i think it should inlined in the initializer

godzillaba · 2026-02-18T22:06:07Z

contracts/tokenbridge/ethereum/gateway/L1YbbERC20Gateway.sol

+        uint256 prevBalance = IERC20(_l1Token).balanceOf(address(this));
+        IERC20(_l1Token).safeTransferFrom(_from, address(this), _amount);
+        uint256 postBalance = IERC20(_l1Token).balanceOf(address(this));
+        amountReceived = postBalance - prevBalance;
+
+        address masterVault = IMasterVaultFactory(masterVaultFactory).getVault(_l1Token);
+        IERC20(_l1Token).safeIncreaseAllowance(masterVault, amountReceived);
+        amountReceived = IMasterVault(masterVault).deposit(amountReceived);
+        require(amountReceived > 0, "ZERO_SHARES");


this code is copy pasted a few times, it's probably better to separate this out into a lib or inherited contract or something

godzillaba · 2026-02-18T22:28:28Z

contracts/tokenbridge/libraries/vault/MasterVault.sol

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


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

godzillaba · 2026-02-18T22:35:13Z

contracts/tokenbridge/libraries/vault/MasterVault.sol

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


yeah imo this is okay, could use some documentation though

godzillaba · 2026-02-18T23:29:45Z

contracts/tokenbridge/ethereum/L1AtomicTokenBridgeCreator.sol

    // L1 logic contracts shared by all token bridges
    L1Templates public l1Templates;

+    YbbL1Templates public ybbL1Templates;


let's move this to the end so we don't shift the storage layout

godzillaba · 2026-02-19T15:15:03Z

contracts/tokenbridge/ethereum/L1AtomicTokenBridgeCreator.sol

+    /**
+     * @notice Set addresses of YBB L1 logic contracts (standard, custom, fee-token-based, and vault templates).
+     */
+    function setYbbTemplates(YbbL1Templates calldata _ybbL1Templates) external onlyOwner {


i think this should be part of the main setTemplates so it isn't forgotten about

This reverts commit 9654a8f.

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 reviewed Feb 18, 2026

View reviewed changes

fixup! fix: defaultSubVault mint extra shares

cc6c1b5

godzillaba reviewed Feb 18, 2026

View reviewed changes

godzillaba reviewed Feb 19, 2026

View reviewed changes

godzillaba added 2 commits February 19, 2026 13:12

1.2.1

9654a8f

Revert "1.2.1"

89a4dfa

This reverts commit 9654a8f.

		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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