CFM-v1 Configuration Scripts

This project contains configuration files and instructions for using the CFM-v1 (Conditional Finance Markets) scripts to split collateral tokens into conditional outcome tokens and wrap them as ERC20 tokens.

Configuration Files

The project includes several pre-configured JSON files for different DeFi protocols:

• split-wrap-compound-finance.json - Configuration for Compound Finance outcomes
• split-wrap-euler.json - Configuration for Euler outcomes
• split-wrap-morpho.json - Configuration for Morpho outcomes
• split-wrap-venus.json - Configuration for Venus outcomes

Adjusting Configuration

Important: Before running any scripts, you should adjust the amount field in the JSON configuration files to match your desired collateral amount. The default amount is 1000000 (1 USDC assuming 6 decimals), but you can modify this based on your needs.

Example configuration structure:

{
  "collateralToken": "0x078d782b760474a361dda0af3839290b0ef57ad6",
  "amount": 1000000,
  "conditionId": "0x...",
  "conditionalTokens": "0xc8E244eB32200e6274E7737238AFa60eC6cf2511",
  "wrapped1155Factory": "0x87bc2f26df5d72b3e45b298127e702ba7ed459ea",
  "outcomeNames": ["Protocol Name", "NOT Protocol Name"]
}

Using the Makefile

This project includes a Makefile for easier script execution:

Install Dependencies

make install

Split and Wrap Tokens

# Basic usage
make split filepath=split-wrap-morpho.json -- --private-key $PRIVATE_KEY

# With verbose output
make split filepath=split-wrap-morpho.json -- --private-key $PRIVATE_KEY -vvvv

# Using a hardware wallet
make split filepath=split-wrap-morpho.json -- --ledger

Unwrap and Merge Tokens

# Basic usage
make merge filepath=split-wrap-morpho.json -- --private-key $PRIVATE_KEY

# With verbose output
make merge filepath=split-wrap-morpho.json -- --private-key $PRIVATE_KEY -vvvv

Check Status

# Check split status
make split-check filepath=split-wrap-morpho.json

# Check merge status
make merge-check filepath=split-wrap-morpho.json

# Check for a specific user
make split-check filepath=split-wrap-morpho.json -- USER=0x...

You can pass any additional forge script arguments after -- such as:

• --private-key $PRIVATE_KEY - Use a private key
• --ledger - Use a Ledger hardware wallet
• --trezor - Use a Trezor hardware wallet
• -vvvv - Verbose output for debugging
• --slow - Slow down execution
• --gas-price <price> - Set custom gas price
• USER=0x... - Check status for a specific user address

Running Scripts Directly

SplitAndWrap Script

The SplitAndWrap script splits your collateral tokens into conditional outcome positions and wraps them as tradeable ERC20 tokens.

Usage Examples:

# For Compound Finance
make split filepath=split-wrap-compound-finance.json -- --private-key $PRIVATE_KEY -vvvv

# For Euler
make split filepath=split-wrap-euler.json -- --private-key $PRIVATE_KEY -vvvv

# For Venus
make split filepath=split-wrap-venus.json -- --private-key $PRIVATE_KEY -vvvv

Check Status:

make split-check filepath=split-wrap-morpho.json

UnwrapAndMerge Script

The UnwrapAndMerge script does the exact opposite of SplitAndWrap - it unwraps your ERC20 conditional tokens back to ERC1155 tokens and merges them back into the original collateral.

Important: This only works if you still hold all the ERC20 tokens that were created during the split and wrap process, and they haven't been transferred elsewhere.

Basic Usage:

make merge filepath=split-wrap-morpho.json -- --private-key $PRIVATE_KEY -vvvv

Check Status:

make merge-check filepath=split-wrap-morpho.json

What These Scripts Do

SplitAndWrap Process:

1. Approve: Allows ConditionalTokens contract to spend your collateral
2. Split: Divides your collateral into conditional outcome positions (ERC1155 tokens)
3. Wrap: Converts each ERC1155 position token into a tradeable ERC20 token
4. Result: You receive ERC20 tokens representing each outcome (e.g., "IF-Morpho" and "IF-NOT Morpho")

UnwrapAndMerge Process:

1. Unwrap: Converts your ERC20 conditional tokens back to ERC1155 tokens
2. Merge: Combines all ERC1155 position tokens back into the original collateral
3. Result: You get your original collateral tokens back

Prerequisites

• Sufficient collateral token balance (adjust amount in config files)
• Set environment variables: $RPC_URL and $PRIVATE_KEY
• Ensure you have the required approvals and balances

Environment Variables

Make sure to set these environment variables before running:

export RPC_URL="https://your-rpc-endpoint"
export PRIVATE_KEY="your-private-key"

Notes

• The scripts use a "full discrete partition" which includes an "invalid outcome" token
• Only the named outcomes are wrapped into ERC20 tokens (invalid outcome remains as ERC1155)
• For UnwrapAndMerge to work, you need ALL the tokens from the original split (including the invalid outcome)
• Always test with small amounts first
• Check balances and approvals using the "Check" variants of the scripts before executing