Deploy ALE V2 with Aggregator Support

FiRM
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Summary

This proposal seeks to deploy ALE V2 to replace and enhance the existing ALE on FiRM. ALE V2 consolidates our leverage logic into a single, robust contract, supporting both 1inch and Odos aggregators for more efficient and flexible routing. In addition, ALE V2 integrates Pendle PT collateral functionality, simplifying complex leverage actions and enabling users to easily leverage into- and deleverage from yield strategies with PT and YT tokens.

Background

The original ALE was designed to facilitate looping and leveraging for FiRM markets but had limitations in flexibility and required repeated redeployments for new collateral types. Additionally, previous helper contracts required fragmented logic for handling different collateral compositions, resulting in technical debt and deployment friction.

ALE V2 represents a major architectural improvement, merging the previous ALE and undeployed ALEPendle implementations into one contract and updating all associated helpers to a unified interface. The engine now directly supports:

  • Pendle PT markets, with helper-based mint/redeem handling for PT and YT tokens.
  • Aggregator-based swaps via both 1inch and Odos, allowing for more optimal execution routes and future scalability.
  • Cleaner interfaces for dynamic helpers (CurveDolaLPHelper, ERC4626Helper, and YVYCRVHelper), reducing complexity and the risk of errors.

This upgrade significantly reduces maintenance overhead by enabling quicker deployment of new markets and collateral types without repeated code rewrites. Furthermore, it enhances UX by enabling direct DOLA entry for supported markets, eliminating unnecessary pre-zap actions.

Implementation

The following contracts have been deployed and reviewed:

ALE V2 will also support governance-defined whitelisting of multiple exchange proxies, enabling greater flexibility in future aggregator integrations. Overall, ALE V2 is a key protocol infrastructure upgrade that streamlines leverage execution, reduces risk, and improves user experience on FiRM.

On-Chain Actions

  • Set ALE V2 as the leverage engine for all existing FiRM markets
  • Configure each market with the appropriate helper.
  • Set exchange proxy addresses for both 1inch and Odos aggregators
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I am assuming the new contract wasn’t audited? Can we know more about the security checks done to ensure it doesn’t introduce any exploit risk and potential harm to Dola ?

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The new ALE implementation has gone through the same external review process as the current version that is live in production. Additionally, the Pendle PT Helper contract has also been submitted for external review.
It’s important to note that the changes introduced in the new ALE version do not affect the core logic related to leveraging or deleveraging positions and all previous security checks are still in place.

The primary breaking change involves support for multiple exchange proxies, conditional on governance approval. Currently, only 1inch is supported. The updated implementation adds support for Odos, with potential for additional exchange proxy integrations in the future.

The other notable change is the update to the helper contracts interfaces, specifically to allow passing msg.sender as an argument. This modification is necessary for compatibility with the Pendle PT Helper. Without this change, we would have needed to deploy a separate ALE instance to support Pendle PT leverage.

To avoid the complexity of managing two ALE instances, we opted to update the interfaces of the existing helpers while keeping their underlying logic unchanged.

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