Introduce Vaults pallet (part of the pUSD Project)

Cargo.toml

@@ -474,6 +474,7 @@ members = [
 	"substrate/frame/tx-pause",
 	"substrate/frame/uniques",
 	"substrate/frame/utility",
+	"substrate/frame/vaults",
 	"substrate/frame/verify-signature",
 	"substrate/frame/vesting",
 	"substrate/frame/whitelist",
@@ -517,6 +518,7 @@ members = [
 	"substrate/primitives/npos-elections/fuzzer",
 	"substrate/primitives/offchain",
 	"substrate/primitives/panic-handler",
+	"substrate/primitives/pusd",
 	"substrate/primitives/rpc",
 	"substrate/primitives/runtime",
 	"substrate/primitives/runtime-interface",
@@ -1079,6 +1081,7 @@ pallet-treasury = { path = "substrate/frame/treasury", default-features = false
 pallet-tx-pause = { default-features = false, path = "substrate/frame/tx-pause" }
 pallet-uniques = { path = "substrate/frame/uniques", default-features = false }
 pallet-utility = { path = "substrate/frame/utility", default-features = false }
+pallet-vaults = { path = "substrate/frame/vaults", default-features = false }
 pallet-verify-signature = { path = "substrate/frame/verify-signature", default-features = false }
 pallet-vesting = { path = "substrate/frame/vesting", default-features = false }
 pallet-whitelist = { path = "substrate/frame/whitelist", default-features = false }
@@ -1356,6 +1359,7 @@ sp-mmr-primitives = { path = "substrate/primitives/merkle-mountain-range", defau
 sp-npos-elections = { path = "substrate/primitives/npos-elections", default-features = false }
 sp-offchain = { path = "substrate/primitives/offchain", default-features = false }
 sp-panic-handler = { path = "substrate/primitives/panic-handler", default-features = false }
+sp-pusd = { path = "substrate/primitives/pusd", default-features = false }
 sp-rpc = { path = "substrate/primitives/rpc", default-features = false }
 sp-runtime = { path = "substrate/primitives/runtime", default-features = false }
 sp-runtime-interface = { path = "substrate/primitives/runtime-interface", default-features = false }

substrate/bin/node/runtime/src/lib.rs

@@ -32,7 +32,7 @@ use pallet_treasury::ArgumentsFactory as PalletTreasuryArgumentsFactory;
 #[cfg(feature = "runtime-benchmarks")]
 use polkadot_sdk::sp_core::crypto::FromEntropy;
 
-use polkadot_sdk::*;
+use polkadot_sdk::{cumulus_primitives_core::Location, *};
 
 use alloc::{vec, vec::Vec};
 use codec::{Decode, DecodeWithMemTracking, Encode, MaxEncodedLen};
@@ -2865,6 +2865,9 @@ mod runtime {
 	#[runtime::pallet_index(85)]
 	pub type Oracle = pallet_oracle::Pallet<Runtime>;
 
+	#[runtime::pallet_index(86)]
+	pub type Vaults = pallet_vaults::Pallet<Runtime>;
+
 	#[runtime::pallet_index(89)]
 	pub type MetaTx = pallet_meta_tx::Pallet<Runtime>;
 
@@ -3040,6 +3043,136 @@ impl pallet_oracle::Config for Runtime {
 	type BenchmarkHelper = OracleBenchmarkingHelper;
 }
 
+parameter_types! {
+	/// The pUSD stablecoin asset ID.
+	pub const VaultsStablecoinAssetId: u32 = 1;
+	/// Minimum collateral deposit to create a vault (1 DOT = 10^10 planck).
+	pub const VaultsMinimumDeposit: Balance = 10_000_000_000;
+	/// Minimum mint amount: 5 pUSD (pUSD has 6 decimals, so 5_000_000).
+	pub const VaultsMinimumMint: Balance = 5_000_000;
+	/// Duration (milliseconds) before a vault is considered stale for on_idle fee accrual.
+	/// 4 hours = 4 × 60 × 60 × 1000 = 14,400,000 ms
+	pub const VaultsStaleThreshold: u64 = 14_400_000;
+	/// Maximum age (milliseconds) of oracle price before operations are paused.
+	/// 1 hour = 60 × 60 × 1000 = 3,600,000 ms
+	pub const VaultsOracleStalenessThreshold: u64 = 3_600_000;
+	/// DOT collateral location.
+	pub VaultsCollateralLocation: Location = Location::here();
+}
+
+/// Insurance fund account that receives protocol revenue (interest and penalties).
+pub struct InsuranceFundAccount;
+impl frame_support::traits::Get<AccountId> for InsuranceFundAccount {
+	fn get() -> AccountId {
+		// Use a deterministic insurance fund account
+		sp_runtime::traits::AccountIdConversion::<AccountId>::into_account_truncating(
+			&frame_support::PalletId(*b"py/insur"),
+		)
+	}
+}
+
+/// Mock oracle adapter that provides a fixed price for now.
+///
+/// This adapter implements `ProvidePrice` with a hardcoded DOT price.
+/// For production, replace this with a real oracle integration.
+///
+/// **Price format (normalized):** smallest_pUSD_units / smallest_collateral_unit
+///
+/// Example calculation for DOT at $4.21:
+/// - DOT has 10 decimals, pUSD has 6 decimals
+/// - 1 DOT = 4.21 pUSD
+/// - Normalized price = 4.21 × 10^6 / 10^10 = 0.000421
+/// - As FixedU128 (18 decimals): 0.000421 × 10^18 = 421_000_000_000_000
+pub struct MockOracleAdapter;
+impl pallet_vaults::ProvidePrice for MockOracleAdapter {
+	type Price = FixedU128;
+	type Moment = u64;
+
+	fn get_price(asset: &Location) -> Option<(Self::Price, Self::Moment)> {
+		// Only support DOT (native asset) for now
+		if *asset != Location::here() {
+			return None;
+		}
+
+		// Fixed DOT price: $4.21 normalized for DOT (10 decimals) and pUSD (6 decimals)
+		// Price = 4.21 * 10^6 / 10^10 = 0.000421
+		// As FixedU128: 421_000_000_000_000 (0.000421 * 10^18)
+		let price = FixedU128::from_inner(421_000_000_000_000);
+
+		// Use current timestamp from the Timestamp pallet
+		let now = <Timestamp as frame_support::traits::Time>::now();
+
+		Some((price, now))
+	}
+}
+
+/// Stub implementation for the Auctions handler.
+///
+/// This is a placeholder until a proper Auctions pallet is implemented.
+/// Currently, liquidations will fail with `Unimplemented` error.
+///
+/// TODO: Replace with actual pallet_auctions integration when available.
+pub struct AuctionAdapter;
+impl pallet_vaults::AuctionsHandler<AccountId, Balance> for AuctionAdapter {
+	fn start_auction(
+		_vault_owner: &AccountId,
+		_collateral_amount: Balance,
+		_principal: Balance,
+		_accrued_interest: Balance,
+		_penalty: Balance,
+		_keeper: &AccountId,
+	) -> Result<u32, frame_support::pallet_prelude::DispatchError> {
+		// TODO: Implement actual auction logic when pallet_auctions is available
+		// For now, liquidations are disabled
+		Err(frame_support::pallet_prelude::DispatchError::Other("Auctions not yet implemented"))
+	}
+}
+
+/// EnsureOrigin implementation for vaults management that supports privilege levels.
+///
+/// - Root origin → `VaultsManagerLevel::Full` (can modify all parameters)
+///
+/// TODO: In the future, this can be extended to support Emergency privilege level
+/// via a (new) specific governance origin that can only lower the debt ceiling.
+pub struct EnsureVaultsManager;
+impl frame_support::traits::EnsureOrigin<RuntimeOrigin> for EnsureVaultsManager {
+	type Success = pallet_vaults::VaultsManagerLevel;
+
+	fn try_origin(o: RuntimeOrigin) -> Result<Self::Success, RuntimeOrigin> {
+		use frame_system::RawOrigin;
+
+		match o.clone().into() {
+			Ok(RawOrigin::Root) => Ok(pallet_vaults::VaultsManagerLevel::Full),
+			_ => Err(o),
+		}
+	}
+
+	#[cfg(feature = "runtime-benchmarks")]
+	fn try_successful_origin() -> Result<RuntimeOrigin, ()> {
+		Ok(RuntimeOrigin::root())
+	}
+}
+
+/// Configure the Vaults pallet.
+impl pallet_vaults::Config for Runtime {
+	type Currency = Balances;
+	type RuntimeHoldReason = RuntimeHoldReason;
+	type Asset = Assets;
+	type AssetId = u32;
+	type StablecoinAssetId = VaultsStablecoinAssetId;
+	type InsuranceFund = InsuranceFundAccount;
+	type MinimumDeposit = VaultsMinimumDeposit;
+	type MinimumMint = VaultsMinimumMint;
+	type TimeProvider = Timestamp;
+	type ManagerOrigin = EnsureVaultsManager;
+	type StaleVaultThreshold = VaultsStaleThreshold;
+	type OracleStalenessThreshold = VaultsOracleStalenessThreshold;
+	type Oracle = MockOracleAdapter;
+	type CollateralLocation = VaultsCollateralLocation;
+	type AuctionsHandler = AuctionAdapter;
+	type WeightInfo = pallet_vaults::weights::SubstrateWeight<Runtime>;
+}
+
 /// MMR helper types.
 mod mmr {
 	use super::*;

substrate/frame/vaults/Cargo.toml

@@ -0,0 +1,65 @@
+[package]
+name = "pallet-vaults"
+version = "0.1.0"
+authors.workspace = true
+edition.workspace = true
+license = "Apache-2.0"
+homepage.workspace = true
+repository.workspace = true
+description = "FRAME pallet for Vaults."
+readme = "README.md"
+include = ["README.md", "src/**/*"]
+
+[lints]
+workspace = true
+
+[package.metadata.docs.rs]
+targets = ["x86_64-unknown-linux-gnu"]
+
+[dependencies]
+codec = { features = ["derive"], workspace = true }
+frame-benchmarking = { workspace = true, optional = true }
+frame-support = { workspace = true }
+frame-system = { workspace = true }
+log = { workspace = true }
+scale-info = { features = ["derive"], workspace = true }
+sp-pusd = { workspace = true }
+sp-runtime = { workspace = true }
+xcm = { workspace = true }
+
+[dev-dependencies]
+pallet-assets = { workspace = true, default-features = true }
+pallet-balances = { workspace = true, default-features = true }
+sp-io = { workspace = true, default-features = true }
+
+[features]
+default = ["std"]
+std = [
+	"codec/std",
+	"frame-benchmarking?/std",
+	"frame-support/std",
+	"frame-system/std",
+	"log/std",
+	"scale-info/std",
+	"sp-pusd/std",
+	"sp-runtime/std",
+	"xcm/std",
+]
+runtime-benchmarks = [
+	"frame-benchmarking/runtime-benchmarks",
+	"frame-support/runtime-benchmarks",
+	"frame-system/runtime-benchmarks",
+	"pallet-assets/runtime-benchmarks",
+	"pallet-balances/runtime-benchmarks",
+	"sp-pusd/runtime-benchmarks",
+	"sp-runtime/runtime-benchmarks",
+	"xcm/runtime-benchmarks",
+]
+try-runtime = [
+	"frame-support/try-runtime",
+	"frame-system/try-runtime",
+	"pallet-assets/try-runtime",
+	"pallet-balances/try-runtime",
+	"sp-pusd/try-runtime",
+	"sp-runtime/try-runtime",
+]