fix: price impact calculation (#316)

* fix: price impact calculation

* test: fix

* refactor: calc price impact only if decimals value provided

x/amm/keeper/calc_swap_estimation_by_denom.go

@@ -1,14 +1,12 @@
 package keeper
 
 import (
+	"math"
+
 	sdk "github.com/cosmos/cosmos-sdk/types"
 	"github.com/elys-network/elys/x/amm/types"
 )
 
-const (
-	lowestAmountForInitialSpotPriceCalc = 10 // lowest amount to use for initial spot price calculation
-)
-
 // CalcSwapEstimationByDenom calculates the swap estimation by denom
 func (k Keeper) CalcSwapEstimationByDenom(
 	ctx sdk.Context,
@@ -18,6 +16,7 @@ func (k Keeper) CalcSwapEstimationByDenom(
 	baseCurrency string,
 	discount sdk.Dec,
 	overrideSwapFee sdk.Dec,
+	decimals uint64,
 ) (
 	inRoute []*types.SwapAmountInRoute,
 	outRoute []*types.SwapAmountOutRoute,
@@ -30,50 +29,65 @@ func (k Keeper) CalcSwapEstimationByDenom(
 	priceImpact sdk.Dec,
 	err error,
 ) {
-	// if amount denom is equal to denomIn, calculate swap estimation by denomIn
+	var (
+		initialSpotPrice sdk.Dec
+	)
+
+	// Initialize return variables
+	inRoute, outRoute = nil, nil
+	outAmount, availableLiquidity = sdk.Coin{}, sdk.Coin{}
+	spotPrice, swapFeeOut, discountOut, weightBonus, priceImpact = sdk.ZeroDec(), sdk.ZeroDec(), sdk.ZeroDec(), sdk.ZeroDec(), sdk.ZeroDec()
+
+	// Determine the correct route based on the amount's denom
 	if amount.Denom == denomIn {
-		inRoute, err := k.CalcInRouteByDenom(ctx, denomIn, denomOut, baseCurrency)
-		if err != nil {
-			return nil, nil, sdk.Coin{}, sdk.ZeroDec(), sdk.ZeroDec(), sdk.ZeroDec(), sdk.Coin{}, sdk.ZeroDec(), sdk.ZeroDec(), err
-		}
-		initialSpotPrice, _, _, _, _, _, err := k.CalcInRouteSpotPrice(ctx, sdk.NewInt64Coin(amount.Denom, lowestAmountForInitialSpotPriceCalc), inRoute, discount, overrideSwapFee)
-		if err != nil {
-			return nil, nil, sdk.Coin{}, sdk.ZeroDec(), sdk.ZeroDec(), sdk.ZeroDec(), sdk.Coin{}, sdk.ZeroDec(), sdk.ZeroDec(), err
-		}
-		// check if initialSpotPrice is zero to avoid division by zero
-		if initialSpotPrice.IsZero() {
-			return nil, nil, sdk.Coin{}, sdk.ZeroDec(), sdk.ZeroDec(), sdk.ZeroDec(), sdk.Coin{}, sdk.ZeroDec(), sdk.ZeroDec(), types.ErrInitialSpotPriceIsZero
-		}
-		spotPrice, tokenOut, swapFeeOut, _, availableLiquidity, weightBonus, err := k.CalcInRouteSpotPrice(ctx, amount, inRoute, discount, overrideSwapFee)
-		if err != nil {
-			return nil, nil, sdk.Coin{}, sdk.ZeroDec(), sdk.ZeroDec(), sdk.ZeroDec(), sdk.Coin{}, sdk.ZeroDec(), sdk.ZeroDec(), err
-		}
-		priceImpact := initialSpotPrice.Sub(spotPrice).Quo(initialSpotPrice)
-		return inRoute, nil, tokenOut, spotPrice, swapFeeOut, discount, availableLiquidity, weightBonus, priceImpact, nil
+		inRoute, err = k.CalcInRouteByDenom(ctx, denomIn, denomOut, baseCurrency)
+	} else if amount.Denom == denomOut {
+		outRoute, err = k.CalcOutRouteByDenom(ctx, denomOut, denomIn, baseCurrency)
+	} else {
+		err = types.ErrInvalidDenom
+		return
 	}
 
-	// if amount denom is equal to denomOut, calculate swap estimation by denomOut
-	if amount.Denom == denomOut {
-		outRoute, err := k.CalcOutRouteByDenom(ctx, denomOut, denomIn, baseCurrency)
-		if err != nil {
-			return nil, nil, sdk.Coin{}, sdk.ZeroDec(), sdk.ZeroDec(), sdk.ZeroDec(), sdk.Coin{}, sdk.ZeroDec(), sdk.ZeroDec(), err
+	if err != nil {
+		return
+	}
+
+	// Calculate initial spot price and price impact if decimals is not zero
+	if decimals != 0 {
+		lowestAmountForInitialSpotPriceCalc := int64(math.Pow10(int(decimals)))
+		initialCoin := sdk.NewInt64Coin(amount.Denom, lowestAmountForInitialSpotPriceCalc)
+
+		if amount.Denom == denomIn {
+			initialSpotPrice, _, _, _, _, _, err = k.CalcInRouteSpotPrice(ctx, initialCoin, inRoute, discount, overrideSwapFee)
+		} else {
+			initialSpotPrice, _, _, _, _, _, err = k.CalcOutRouteSpotPrice(ctx, initialCoin, outRoute, discount, overrideSwapFee)
 		}
-		initialSpotPrice, _, _, _, _, _, err := k.CalcOutRouteSpotPrice(ctx, sdk.NewInt64Coin(amount.Denom, lowestAmountForInitialSpotPriceCalc), outRoute, discount, overrideSwapFee)
+
 		if err != nil {
-			return nil, nil, sdk.Coin{}, sdk.ZeroDec(), sdk.ZeroDec(), sdk.ZeroDec(), sdk.Coin{}, sdk.ZeroDec(), sdk.ZeroDec(), err
+			return
 		}
-		// check if initialSpotPrice is zero to avoid division by zero
 		if initialSpotPrice.IsZero() {
-			return nil, nil, sdk.Coin{}, sdk.ZeroDec(), sdk.ZeroDec(), sdk.ZeroDec(), sdk.Coin{}, sdk.ZeroDec(), sdk.ZeroDec(), types.ErrInitialSpotPriceIsZero
+			err = types.ErrInitialSpotPriceIsZero
+			return
 		}
-		spotPrice, tokenIn, swapFeeOut, _, availableLiquidity, weightBonus, err := k.CalcOutRouteSpotPrice(ctx, amount, outRoute, discount, overrideSwapFee)
-		if err != nil {
-			return nil, nil, sdk.Coin{}, sdk.ZeroDec(), sdk.ZeroDec(), sdk.ZeroDec(), sdk.Coin{}, sdk.ZeroDec(), sdk.ZeroDec(), err
-		}
-		priceImpact := initialSpotPrice.Sub(spotPrice).Quo(initialSpotPrice)
-		return nil, outRoute, tokenIn, spotPrice, swapFeeOut, discount, availableLiquidity, weightBonus, priceImpact, nil
 	}
 
-	// if amount denom is neither equal to denomIn nor denomOut, return error
-	return nil, nil, sdk.Coin{}, sdk.ZeroDec(), sdk.ZeroDec(), sdk.ZeroDec(), sdk.Coin{}, sdk.ZeroDec(), sdk.ZeroDec(), types.ErrInvalidDenom
+	// Calculate final spot price and other outputs
+	if amount.Denom == denomIn {
+		spotPrice, outAmount, swapFeeOut, _, availableLiquidity, weightBonus, err = k.CalcInRouteSpotPrice(ctx, amount, inRoute, discount, overrideSwapFee)
+	} else {
+		spotPrice, outAmount, swapFeeOut, _, availableLiquidity, weightBonus, err = k.CalcOutRouteSpotPrice(ctx, amount, outRoute, discount, overrideSwapFee)
+	}
+
+	if err != nil {
+		return
+	}
+
+	// Calculate price impact if decimals is not zero
+	if decimals != 0 {
+		priceImpact = initialSpotPrice.Sub(spotPrice).Quo(initialSpotPrice)
+	}
+
+	// Return the calculated values
+	return
 }

x/amm/keeper/calc_swap_estimation_by_denom_test.go

@@ -97,7 +97,9 @@ func (suite *KeeperTestSuite) TestCalcSwapEstimationByDenom() {
 		amount,
 		ptypes.Elys, "uusda", ptypes.BaseCurrency,
 		sdk.ZeroDec(),
-		sdk.ZeroDec())
+		sdk.ZeroDec(),
+		1,
+	)
 	suite.Require().NoError(err)
 	suite.Require().NotNil(inRoute)
 	suite.Require().Nil(outRoute)
@@ -110,7 +112,9 @@ func (suite *KeeperTestSuite) TestCalcSwapEstimationByDenom() {
 		amount,
 		ptypes.Elys, "uusda", ptypes.BaseCurrency,
 		sdk.ZeroDec(),
-		sdk.ZeroDec())
+		sdk.ZeroDec(),
+		1,
+	)
 	suite.Require().NoError(err)
 	suite.Require().Nil(inRoute)
 	suite.Require().NotNil(outRoute)
@@ -123,6 +127,8 @@ func (suite *KeeperTestSuite) TestCalcSwapEstimationByDenom() {
 		suite.ctx, amount,
 		ptypes.Elys, "uusda", ptypes.BaseCurrency,
 		sdk.ZeroDec(),
-		sdk.ZeroDec())
+		sdk.ZeroDec(),
+		1,
+	)
 	suite.Require().Error(err)
 }

x/amm/keeper/msg_server_swap_by_denom.go

@@ -18,13 +18,14 @@ func (k msgServer) SwapByDenom(goCtx context.Context, msg *types.MsgSwapByDenom)
 		return nil, err
 	}
 
+	// retrieve base currency denom
 	entry, found := k.assetProfileKeeper.GetEntry(ctx, ptypes.BaseCurrency)
 	if !found {
 		return nil, errorsmod.Wrapf(assetprofiletypes.ErrAssetProfileNotFound, "asset %s not found", ptypes.BaseCurrency)
 	}
 	baseCurrency := entry.Denom
 
-	inRoute, outRoute, _, spotPrice, _, _, _, _, _, err := k.CalcSwapEstimationByDenom(ctx, msg.Amount, msg.DenomIn, msg.DenomOut, baseCurrency, msg.Discount, sdk.ZeroDec())
+	inRoute, outRoute, _, spotPrice, _, _, _, _, _, err := k.CalcSwapEstimationByDenom(ctx, msg.Amount, msg.DenomIn, msg.DenomOut, baseCurrency, msg.Discount, sdk.ZeroDec(), 0)
 	if err != nil {
 		return nil, err
 	}

x/amm/keeper/msg_server_swap_by_denom_test.go

@@ -6,6 +6,7 @@ import (
 	minttypes "github.com/cosmos/cosmos-sdk/x/mint/types"
 	"github.com/elys-network/elys/x/amm/keeper"
 	"github.com/elys-network/elys/x/amm/types"
+	assetprofiletypes "github.com/elys-network/elys/x/assetprofile/types"
 	ptypes "github.com/elys-network/elys/x/parameter/types"
 )
 
@@ -54,6 +55,13 @@ func (suite *KeeperTestSuite) TestMsgServerSwapByDenom() {
 		suite.Run(tc.desc, func() {
 			suite.SetupTest()
 
+			// set asset profile
+			suite.app.AssetprofileKeeper.SetEntry(suite.ctx, assetprofiletypes.Entry{
+				BaseDenom: ptypes.Elys,
+				Denom:     ptypes.Elys,
+				Decimals:  6,
+			})
+
 			// bootstrap accounts
 			sender := sdk.AccAddress(ed25519.GenPrivKey().PubKey().Address())
 			poolAddr := sdk.AccAddress(ed25519.GenPrivKey().PubKey().Address())

x/amm/keeper/query_swap_estimation_by_denom.go

@@ -19,15 +19,23 @@ func (k Keeper) SwapEstimationByDenom(goCtx context.Context, req *types.QuerySwa
 
 	ctx := sdk.UnwrapSDKContext(goCtx)
 
+	// retrieve base currency denom
 	entry, found := k.assetProfileKeeper.GetEntry(ctx, ptypes.BaseCurrency)
 	if !found {
 		return nil, errorsmod.Wrapf(assetprofiletypes.ErrAssetProfileNotFound, "asset %s not found", ptypes.BaseCurrency)
 	}
 	baseCurrency := entry.Denom
 
+	// retrieve denom in decimals
+	entry, found = k.assetProfileKeeper.GetEntryByDenom(ctx, req.DenomIn)
+	if !found {
+		return nil, errorsmod.Wrapf(assetprofiletypes.ErrAssetProfileNotFound, "asset %s not found", req.DenomIn)
+	}
+	decimals := entry.Decimals
+
 	_ = baseCurrency
 
-	inRoute, outRoute, amount, spotPrice, swapFee, discount, availableLiquidity, weightBonus, priceImpact, err := k.CalcSwapEstimationByDenom(ctx, req.Amount, req.DenomIn, req.DenomOut, baseCurrency, req.Discount, sdk.ZeroDec())
+	inRoute, outRoute, amount, spotPrice, swapFee, discount, availableLiquidity, weightBonus, priceImpact, err := k.CalcSwapEstimationByDenom(ctx, req.Amount, req.DenomIn, req.DenomOut, baseCurrency, req.Discount, sdk.ZeroDec(), decimals)
 	if err != nil {
 		return nil, err
 	}

x/amm/types/expected_keepers.go

@@ -44,6 +44,8 @@ type AssetProfileKeeper interface {
 	SetEntry(ctx sdk.Context, entry atypes.Entry)
 	// GetEntry returns a entry from its index
 	GetEntry(ctx sdk.Context, baseDenom string) (val atypes.Entry, found bool)
+	// GetEntryByDenom returns a entry from its denom value
+	GetEntryByDenom(ctx sdk.Context, denom string) (val atypes.Entry, found bool)
 }
 
 // AccountedPoolKeeper defines the expected interfaces

x/assetprofile/keeper/entry.go

@@ -25,6 +25,24 @@ func (k Keeper) GetEntry(ctx sdk.Context, baseDenom string) (val types.Entry, fo
 	return val, true
 }
 
+// GetEntryByDenom returns a entry from its denom value
+func (k Keeper) GetEntryByDenom(ctx sdk.Context, denom string) (val types.Entry, found bool) {
+	store := prefix.NewStore(ctx.KVStore(k.storeKey), types.KeyPrefix(types.EntryKeyPrefix))
+	iterator := sdk.KVStorePrefixIterator(store, []byte{})
+
+	defer iterator.Close()
+
+	for ; iterator.Valid(); iterator.Next() {
+		var val types.Entry
+		k.cdc.MustUnmarshal(iterator.Value(), &val)
+		if val.Denom == denom {
+			return val, true
+		}
+	}
+
+	return types.Entry{}, false
+}
+
 // RemoveEntry removes a entry from the store
 func (k Keeper) RemoveEntry(ctx sdk.Context, baseDenom string) {
 	store := prefix.NewStore(ctx.KVStore(k.storeKey), types.KeyPrefix(types.EntryKeyPrefix))

x/margin/keeper/query_open_estimation.go

@@ -28,6 +28,7 @@ func (k Keeper) OpenEstimation(goCtx context.Context, req *types.QueryOpenEstima
 	// get swap fee param
 	swapFee := k.GetSwapFee(ctx)
 
+	// retrieve base currency denom
 	entry, found := k.assetProfileKeeper.GetEntry(ctx, ptypes.BaseCurrency)
 	if !found {
 		return nil, errorsmod.Wrapf(assetprofiletypes.ErrAssetProfileNotFound, "asset %s not found", ptypes.BaseCurrency)
@@ -37,7 +38,7 @@ func (k Keeper) OpenEstimation(goCtx context.Context, req *types.QueryOpenEstima
 	leveragedAmount := sdk.NewDecFromBigInt(req.Collateral.Amount.BigInt()).Mul(req.Leverage).TruncateInt()
 	leveragedCoin := sdk.NewCoin(req.Collateral.Denom, leveragedAmount)
 
-	_, _, positionSize, openPrice, swapFee, discount, availableLiquidity, _, _, err := k.amm.CalcSwapEstimationByDenom(ctx, leveragedCoin, req.Collateral.Denom, req.TradingAsset, baseCurrency, req.Discount, swapFee)
+	_, _, positionSize, openPrice, swapFee, discount, availableLiquidity, _, _, err := k.amm.CalcSwapEstimationByDenom(ctx, leveragedCoin, req.Collateral.Denom, req.TradingAsset, baseCurrency, req.Discount, swapFee, 0)
 	if err != nil {
 		return nil, err
 	}

x/margin/types/expected_keepers.go

@@ -144,6 +144,7 @@ type AmmKeeper interface {
 		baseCurrency string,
 		discount sdk.Dec,
 		overrideSwapFee sdk.Dec,
+		decimals uint64,
 	) (
 		inRoute []*ammtypes.SwapAmountInRoute,
 		outRoute []*ammtypes.SwapAmountOutRoute,
@@ -182,4 +183,6 @@ type BankKeeper interface {
 type AssetProfileKeeper interface {
 	// GetEntry returns a entry from its index
 	GetEntry(ctx sdk.Context, baseDenom string) (val atypes.Entry, found bool)
+	// GetEntryByDenom returns a entry from its denom value
+	GetEntryByDenom(ctx sdk.Context, denom string) (val atypes.Entry, found bool)
 }