fix(amm): collect half weight breaking fee

elys-network · Dec 2, 2024 · 7dabb7e · 7dabb7e
1 parent eb4bf9f
commit 7dabb7e
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Showing 7 changed files with 53 additions and 23 deletions.
diff --git a/x/amm/keeper/keeper_swap_exact_amount_in_test.go b/x/amm/keeper/keeper_swap_exact_amount_in_test.go
@@ -120,8 +120,8 @@ func (suite *AmmKeeperTestSuite) TestSwapExactAmountIn() {
 			useNewRecipient:     false,
 			expSenderBalance:    sdk.Coins{sdk.NewInt64Coin("uusda", 990000), sdk.NewInt64Coin(ptypes.BaseCurrency, 1009969)},
 			expRecipientBalance: sdk.Coins{},
-			expPoolBalance:      sdk.Coins{sdk.NewInt64Coin("uusda", 1010000), sdk.NewInt64Coin(ptypes.BaseCurrency, 990031)},
-			expTreasuryBalance:  sdk.Coins{sdk.NewInt64Coin("uusda", 1000000), sdk.NewInt64Coin(ptypes.BaseCurrency, 1000000)},
+			expPoolBalance:      sdk.Coins{sdk.NewInt64Coin("uusda", 1010000), sdk.NewInt64Coin(ptypes.BaseCurrency, 990028)},
+			expTreasuryBalance:  sdk.Coins{sdk.NewInt64Coin("uusda", 1000000), sdk.NewInt64Coin(ptypes.BaseCurrency, 1000003)},
 			expPass:             true,
 		},
 		{

diff --git a/x/amm/keeper/keeper_swap_exact_amount_out_test.go b/x/amm/keeper/keeper_swap_exact_amount_out_test.go
@@ -114,8 +114,8 @@ func (suite *AmmKeeperTestSuite) TestSwapExactAmountOut() {
 			useNewRecipient:     false,
 			expSenderBalance:    sdk.Coins{sdk.NewInt64Coin("uusda", 788591), sdk.NewInt64Coin(ptypes.BaseCurrency, 1200000)},
 			expRecipientBalance: sdk.Coins{},
-			expPoolBalance:      sdk.Coins{sdk.NewInt64Coin("uusda", 1211409), sdk.NewInt64Coin(ptypes.BaseCurrency, 800000)},
-			expTreasuryBalance:  sdk.Coins{sdk.NewInt64Coin("uusda", 1000000), sdk.NewInt64Coin(ptypes.BaseCurrency, 1000000)},
+			expPoolBalance:      sdk.Coins{sdk.NewInt64Coin("uusda", 1211409), sdk.NewInt64Coin(ptypes.BaseCurrency, 799859)},
+			expTreasuryBalance:  sdk.Coins{sdk.NewInt64Coin("uusda", 1000000), sdk.NewInt64Coin(ptypes.BaseCurrency, 1000141)},
 			expPass:             true,
 		},
 		{

diff --git a/x/amm/keeper/update_pool_for_swap.go b/x/amm/keeper/update_pool_for_swap.go
@@ -52,6 +52,29 @@ func (k Keeper) UpdatePoolForSwap(
 		}
 	}
 
+	// init weightRecoveryFeeAmount to zero
+	weightRecoveryFeeAmount := sdkmath.ZeroInt()
+
+	// send half (weight breaking fee portion) of weight breaking fee to rebalance treasury
+	if !weightBalanceBonus.IsPositive() {
+		params := k.GetParams(ctx)
+		rebalanceTreasury := sdk.MustAccAddressFromBech32(pool.GetRebalanceTreasury())
+		weightRecoveryFee := weightBalanceBonus.Abs().Mul(params.WeightBreakingFeePortion)
+
+		// weight recovery fee must be positive
+		if weightRecoveryFee.IsPositive() {
+			weightRecoveryFeeAmount = tokenOut.Amount.ToLegacyDec().Mul(weightRecoveryFee).RoundInt()
+
+			// send weight recovery fee to rebalance treasury if weight recovery fee amount is positive
+			if weightRecoveryFeeAmount.IsPositive() {
+				err = k.bankKeeper.SendCoins(ctx, poolAddr, rebalanceTreasury, sdk.Coins{sdk.NewCoin(tokenOut.Denom, weightRecoveryFeeAmount)})
+				if err != nil {
+					return sdkmath.ZeroInt(), err
+				}
+			}
+		}
+	}
+
 	// Send coins to recipient
 	err = k.bankKeeper.SendCoins(ctx, poolAddr, recipient, sdk.Coins{tokenOut})
 	if err != nil {
@@ -78,18 +101,24 @@ func (k Keeper) UpdatePoolForSwap(
 	// calculate total swap fee
 	swapFeeCoins := swapFeeInCoins.Add(swapFeeOutCoins...)
 
-	// init bonusTokenAmount to zero
-	bonusTokenAmount := sdkmath.ZeroInt()
-
 	// calculate bonus token amount if weightBalanceBonus is positive
 	if weightBalanceBonus.IsPositive() {
+		// get treasury balance
+		rebalanceTreasuryAddr := sdk.MustAccAddressFromBech32(pool.GetRebalanceTreasury())
+		treasuryTokenAmount := k.bankKeeper.GetBalance(ctx, rebalanceTreasuryAddr, tokenOut.Denom).Amount
+
 		// bonus token amount is the tokenOut amount times weightBalanceBonus
-		bonusTokenAmount = sdkmath.LegacyNewDecFromInt(tokenOut.Amount).Mul(weightBalanceBonus).RoundInt()
+		bonusTokenAmount := sdkmath.LegacyNewDecFromInt(tokenOut.Amount).Mul(weightBalanceBonus).RoundInt()
+
+		// if treasury balance is less than bonusTokenAmount, set bonusTokenAmount to treasury balance
+		if treasuryTokenAmount.LT(bonusTokenAmount) {
+			bonusTokenAmount = treasuryTokenAmount
+		}
 
 		// send bonusTokenAmount from pool addr to recipient addr, we are shortcutting the rebalance treasury address to optimize gas
 		if bonusTokenAmount.IsPositive() {
 			bonusToken := sdk.NewCoin(tokenOut.Denom, bonusTokenAmount)
-			err = k.bankKeeper.SendCoins(ctx, poolAddr, recipient, sdk.Coins{bonusToken})
+			err = k.bankKeeper.SendCoins(ctx, rebalanceTreasuryAddr, recipient, sdk.Coins{bonusToken})
 			if err != nil {
 				return sdkmath.ZeroInt(), err
 			}
@@ -123,9 +152,9 @@ func (k Keeper) UpdatePoolForSwap(
 		return sdkmath.Int{}, err
 	}
 
-	// record bonus token amount as total liquidity decrease
-	bonusToken := sdk.NewCoin(tokenOut.Denom, bonusTokenAmount)
-	err = k.RecordTotalLiquidityDecrease(ctx, sdk.Coins{bonusToken})
+	// record weight recovery fee amount as total liquidity decrease
+	weightRecoveryToken := sdk.NewCoin(tokenOut.Denom, weightRecoveryFeeAmount)
+	err = k.RecordTotalLiquidityDecrease(ctx, sdk.Coins{weightRecoveryToken})
 	if err != nil {
 		return sdkmath.Int{}, err
 	}

diff --git a/x/amm/keeper/update_pool_for_swap_test.go b/x/amm/keeper/update_pool_for_swap_test.go
@@ -96,8 +96,8 @@ func (suite *AmmKeeperTestSuite) TestUpdatePoolForSwap() {
 			tokenOut:            sdk.NewInt64Coin(ptypes.BaseCurrency, 10000),
 			weightBalanceBonus:  sdkmath.LegacyNewDecWithPrec(3, 1), // 30% bonus
 			expSenderBalance:    sdk.Coins{sdk.NewInt64Coin(ptypes.Elys, 990000), sdk.NewInt64Coin(ptypes.BaseCurrency, 1013000)},
-			expPoolBalance:      sdk.Coins{sdk.NewInt64Coin(ptypes.Elys, 1010000), sdk.NewInt64Coin(ptypes.BaseCurrency, 987000)},
-			expTreasuryBalance:  sdk.Coins{sdk.NewInt64Coin(ptypes.Elys, 1000000), sdk.NewInt64Coin(ptypes.BaseCurrency, 1000000)},
+			expPoolBalance:      sdk.Coins{sdk.NewInt64Coin(ptypes.Elys, 1010000), sdk.NewInt64Coin(ptypes.BaseCurrency, 990000)},
+			expTreasuryBalance:  sdk.Coins{sdk.NewInt64Coin(ptypes.Elys, 1000000), sdk.NewInt64Coin(ptypes.BaseCurrency, 997000)},
 			expPass:             true,
 		},
 		{
@@ -110,9 +110,9 @@ func (suite *AmmKeeperTestSuite) TestUpdatePoolForSwap() {
 			tokenIn:             sdk.NewInt64Coin(ptypes.Elys, 10000),
 			tokenOut:            sdk.NewInt64Coin(ptypes.BaseCurrency, 10000),
 			weightBalanceBonus:  sdkmath.LegacyNewDecWithPrec(3, 1), // 30% bonus
-			expSenderBalance:    sdk.Coins{sdk.NewInt64Coin(ptypes.Elys, 990000), sdk.NewInt64Coin(ptypes.BaseCurrency, 1013000)},
-			expPoolBalance:      sdk.Coins{sdk.NewInt64Coin(ptypes.Elys, 1010000), sdk.NewInt64Coin(ptypes.BaseCurrency, 987000)},
-			expTreasuryBalance:  sdk.Coins{sdk.NewInt64Coin(ptypes.Elys, 1000000), sdk.NewInt64Coin(ptypes.BaseCurrency, 100)},
+			expSenderBalance:    sdk.Coins{sdk.NewInt64Coin(ptypes.Elys, 990000), sdk.NewInt64Coin(ptypes.BaseCurrency, 1010100)},
+			expPoolBalance:      sdk.Coins{sdk.NewInt64Coin(ptypes.Elys, 1010000), sdk.NewInt64Coin(ptypes.BaseCurrency, 990000)},
+			expTreasuryBalance:  sdk.Coins{sdk.NewInt64Coin(ptypes.Elys, 1000000)},
 			expPass:             true,
 		},
 	} {

diff --git a/x/amm/types/pool_join_pool.go b/x/amm/types/pool_join_pool.go
@@ -198,8 +198,8 @@ func (p *Pool) JoinPool(
 	weightOut := sdkmath.LegacyOneDec().Sub(weightIn)
 	weightBreakingFee := GetWeightBreakingFee(weightIn, weightOut, targetWeightIn, targetWeightOut, distanceDiff, params)
 
-	// weight recovery reward = weight breaking fee * weight recovery fee portion
-	weightRecoveryReward := weightBreakingFee.Mul(params.WeightRecoveryFeePortion)
+	// weight recovery reward = weight breaking fee * weight breaking fee portion
+	weightRecoveryReward := weightBreakingFee.Mul(params.WeightBreakingFeePortion)
 
 	// bonus is valid when distance is lower than original distance and when threshold weight reached
 	weightBalanceBonus = weightBreakingFee.Neg()

diff --git a/x/amm/types/swap_in_amt_given_out.go b/x/amm/types/swap_in_amt_given_out.go
@@ -138,8 +138,9 @@ func (p *Pool) SwapInAmtGivenOut(
 
 	// weightBreakingFeePerpetualFactor is 1 if not send by perpetual
 	weightBreakingFee = weightBreakingFee.Mul(weightBreakingFeePerpetualFactor)
-	// weight recovery reward = weight breaking fee * weight recovery fee portion
-	weightRecoveryReward := weightBreakingFee.Mul(params.WeightRecoveryFeePortion)
+
+	// weight recovery reward = weight breaking fee * weight breaking fee portion
+	weightRecoveryReward := weightBreakingFee.Mul(params.WeightBreakingFeePortion)
 
 	// bonus is valid when distance is lower than original distance and when threshold weight reached
 	weightBalanceBonus = weightBreakingFee.Neg()

diff --git a/x/amm/types/swap_out_amt_given_in.go b/x/amm/types/swap_out_amt_given_in.go
@@ -309,8 +309,8 @@ func (p *Pool) SwapOutAmtGivenIn(
 	// weightBreakingFeePerpetualFactor is 1 if not send by perpetual
 	weightBreakingFee = weightBreakingFee.Mul(weightBreakingFeePerpetualFactor)
 
-	// weight recovery reward = weight breaking fee * weight recovery fee portion
-	weightRecoveryReward := weightBreakingFee.Mul(params.WeightRecoveryFeePortion)
+	// weight recovery reward = weight breaking fee * weight breaking fee portion
+	weightRecoveryReward := weightBreakingFee.Mul(params.WeightBreakingFeePortion)
 
 	// bonus is valid when distance is lower than original distance and when threshold weight reached
 	weightBalanceBonus = weightBreakingFee.Neg()