diff --git a/x/cdp/keeper/cdp.go b/x/cdp/keeper/cdp.go index cb52e58b..1f6a4586 100644 --- a/x/cdp/keeper/cdp.go +++ b/x/cdp/keeper/cdp.go @@ -615,7 +615,7 @@ type pricefeedType string const ( spot pricefeedType = "spot" - liquidation = "liquidation" + liquidation pricefeedType = "liquidation" ) func (pft pricefeedType) IsValid() error { diff --git a/x/cdp/types/params.go b/x/cdp/types/params.go index f78920f4..ee347f2e 100644 --- a/x/cdp/types/params.go +++ b/x/cdp/types/params.go @@ -362,6 +362,10 @@ func validateCollateralParams(i interface{}) error { return fmt.Errorf("debt limit for all collaterals should be positive, is %s for %s", cp.DebtLimit, cp.Denom) } + if cp.LiquidationRatio.IsNil() || !cp.LiquidationRatio.IsPositive() { + return fmt.Errorf("liquidation ratio must be > 0") + } + if cp.LiquidationPenalty.LT(sdk.ZeroDec()) || cp.LiquidationPenalty.GT(sdk.OneDec()) { return fmt.Errorf("liquidation penalty should be between 0 and 1, is %s for %s", cp.LiquidationPenalty, cp.Denom) } diff --git a/x/cdp/types/params_test.go b/x/cdp/types/params_test.go index 17de0a82..f143d9e7 100644 --- a/x/cdp/types/params_test.go +++ b/x/cdp/types/params_test.go @@ -1,7 +1,6 @@ package types_test import ( - "strings" "testing" "github.com/stretchr/testify/suite" @@ -715,6 +714,39 @@ func (suite *ParamsTestSuite) TestParamValidation() { contains: "stability fee must be ≥ 1.0", }, }, + { + name: "invalid collateral params zero liquidation ratio", + args: args{ + globalDebtLimit: sdk.NewInt64Coin("usdx", 2000000000000), + collateralParams: types.CollateralParams{ + { + Denom: "bnb", + Type: "bnb-a", + LiquidationRatio: sdk.MustNewDecFromStr("0.0"), + DebtLimit: sdk.NewInt64Coin("usdx", 1_000_000_000_000), + StabilityFee: sdk.MustNewDecFromStr("1.1"), + LiquidationPenalty: sdk.MustNewDecFromStr("0.05"), + AuctionSize: sdk.NewInt(50_000_000_000), + Prefix: 0x20, + SpotMarketID: "bnb:usd", + LiquidationMarketID: "bnb:usd", + KeeperRewardPercentage: sdk.MustNewDecFromStr("0.01"), + ConversionFactor: sdk.NewInt(8), + CheckCollateralizationIndexCount: sdk.NewInt(10), + }, + }, + debtParam: types.DefaultDebtParam, + surplusThreshold: types.DefaultSurplusThreshold, + surplusLot: types.DefaultSurplusLot, + debtThreshold: types.DefaultDebtThreshold, + debtLot: types.DefaultDebtLot, + breaker: types.DefaultCircuitBreaker, + }, + errArgs: errArgs{ + expectPass: false, + contains: "liquidation ratio must be > 0", + }, + }, { name: "invalid debt param empty denom", args: args{ @@ -847,7 +879,7 @@ func (suite *ParamsTestSuite) TestParamValidation() { suite.Require().NoError(err) } else { suite.Require().Error(err) - suite.Require().True(strings.Contains(err.Error(), tc.errArgs.contains)) + suite.Require().Contains(err.Error(), tc.errArgs.contains) } }) } diff --git a/x/hard/keeper/liquidation.go b/x/hard/keeper/liquidation.go index aaee1a3a..67daa6c0 100644 --- a/x/hard/keeper/liquidation.go +++ b/x/hard/keeper/liquidation.go @@ -113,7 +113,13 @@ func (k Keeper) SeizeDeposits(ctx sdk.Context, keeper sdk.AccAddress, deposit ty } // Loan-to-Value ratio after sending keeper their reward - ltv := borrowCoinValues.Sum().Quo(depositCoinValues.Sum()) + depositUsdValue := depositCoinValues.Sum() + if depositUsdValue.IsZero() { + // Deposit value can be zero if params.KeeperRewardPercent is 1.0, or all deposit asset prices are zero. + // In this case the full deposit will be sent to the keeper and no auctions started. + return nil + } + ltv := borrowCoinValues.Sum().Quo(depositUsdValue) liquidatedCoins, err := k.StartAuctions(ctx, deposit.Depositor, borrow.Amount, aucDeposits, depositCoinValues, borrowCoinValues, ltv, liqMap) // If some coins were liquidated and sent to auction prior to error, still need to emit liquidation event diff --git a/x/hard/keeper/liquidation_test.go b/x/hard/keeper/liquidation_test.go index a34615ae..9f30684f 100644 --- a/x/hard/keeper/liquidation_test.go +++ b/x/hard/keeper/liquidation_test.go @@ -7,7 +7,6 @@ import ( sdk "github.com/cosmos/cosmos-sdk/types" abci "github.com/tendermint/tendermint/abci/types" "github.com/tendermint/tendermint/crypto" - tmtime "github.com/tendermint/tendermint/types/time" "github.com/kava-labs/kava/app" auctypes "github.com/kava-labs/kava/x/auction/types" @@ -26,7 +25,7 @@ func (suite *KeeperTestSuite) TestKeeperLiquidation() { initialKeeperCoins sdk.Coins depositCoins []sdk.Coin borrowCoins sdk.Coins - liquidateAfter int64 + liquidateAfter time.Duration expectedTotalSuppliedCoins sdk.Coins expectedTotalBorrowedCoins sdk.Coins expectedKeeperCoins sdk.Coins // coins keeper address should have after successfully liquidating position @@ -48,7 +47,7 @@ func (suite *KeeperTestSuite) TestKeeperLiquidation() { // Set up test constants model := types.NewInterestRateModel(sdk.MustNewDecFromStr("0"), sdk.MustNewDecFromStr("0.1"), sdk.MustNewDecFromStr("0.8"), sdk.MustNewDecFromStr("0.5")) reserveFactor := sdk.MustNewDecFromStr("0.05") - oneMonthInSeconds := int64(2592000) + oneMonthInSeconds := time.Second * 30 * 24 * 3600 borrower := sdk.AccAddress(crypto.AddressHash([]byte("testborrower"))) keeper := sdk.AccAddress(crypto.AddressHash([]byte("testkeeper"))) @@ -99,6 +98,68 @@ func (suite *KeeperTestSuite) TestKeeperLiquidation() { contains: "", }, }, + { + "valid: 0% keeper rewards", + args{ + borrower: borrower, + keeper: keeper, + keeperRewardPercent: sdk.MustNewDecFromStr("0.0"), + initialModuleCoins: sdk.NewCoins(sdk.NewCoin("ukava", sdk.NewInt(100*KAVA_CF))), + initialBorrowerCoins: sdk.NewCoins(sdk.NewCoin("ukava", sdk.NewInt(100*KAVA_CF))), + initialKeeperCoins: sdk.NewCoins(sdk.NewCoin("ukava", sdk.NewInt(100*KAVA_CF))), + depositCoins: sdk.NewCoins(sdk.NewCoin("ukava", sdk.NewInt(10*KAVA_CF))), + borrowCoins: sdk.NewCoins(sdk.NewCoin("ukava", sdk.NewInt(8*KAVA_CF))), + liquidateAfter: oneMonthInSeconds, + expectedTotalSuppliedCoins: sdk.NewCoins(sdk.NewInt64Coin("ukava", 100_004_117)), + expectedTotalBorrowedCoins: sdk.NewCoins(sdk.NewInt64Coin("ukava", 1)), + expectedKeeperCoins: sdk.NewCoins(sdk.NewCoin("ukava", sdk.NewInt(100*KAVA_CF))), + expectedBorrowerCoins: sdk.NewCoins(sdk.NewCoin("ukava", sdk.NewInt(98*KAVA_CF))), // initial - deposit + borrow + liquidation leftovers + expectedAuctions: auctypes.Auctions{ + auctypes.CollateralAuction{ + BaseAuction: auctypes.BaseAuction{ + ID: 1, + Initiator: "hard", + Lot: sdk.NewInt64Coin("ukava", 10000411), + Bidder: nil, + Bid: sdk.NewInt64Coin("ukava", 0), + HasReceivedBids: false, + EndTime: endTime, + MaxEndTime: endTime, + }, + CorrespondingDebt: sdk.NewInt64Coin("debt", 0), + MaxBid: sdk.NewInt64Coin("ukava", 8004765), + LotReturns: lotReturns, + }, + }, + }, + errArgs{ + expectPass: true, + contains: "", + }, + }, + { + "valid: 100% keeper reward", + args{ + borrower: borrower, + keeper: keeper, + keeperRewardPercent: sdk.MustNewDecFromStr("1.0"), + initialModuleCoins: sdk.NewCoins(sdk.NewCoin("ukava", sdk.NewInt(100*KAVA_CF))), + initialBorrowerCoins: sdk.NewCoins(sdk.NewCoin("ukava", sdk.NewInt(100*KAVA_CF))), + initialKeeperCoins: sdk.NewCoins(sdk.NewCoin("ukava", sdk.NewInt(100*KAVA_CF))), + depositCoins: sdk.NewCoins(sdk.NewCoin("ukava", sdk.NewInt(10*KAVA_CF))), + borrowCoins: sdk.NewCoins(sdk.NewCoin("ukava", sdk.NewInt(8*KAVA_CF))), + liquidateAfter: oneMonthInSeconds, + expectedTotalSuppliedCoins: sdk.NewCoins(sdk.NewInt64Coin("ukava", 100_004_117)), + expectedTotalBorrowedCoins: sdk.NewCoins(sdk.NewInt64Coin("ukava", 8_004_766)), + expectedKeeperCoins: sdk.NewCoins(sdk.NewCoin("ukava", sdk.NewInt(110_000_411))), + expectedBorrowerCoins: sdk.NewCoins(sdk.NewCoin("ukava", sdk.NewInt(98*KAVA_CF))), // initial - deposit + borrow + liquidation leftovers + expectedAuctions: nil, + }, + errArgs{ + expectPass: true, + contains: "", + }, + }, { "valid: single deposit, multiple borrows", args{ @@ -467,7 +528,7 @@ func (suite *KeeperTestSuite) TestKeeperLiquidation() { suite.Run(tc.name, func() { // Initialize test app and set context tApp := app.NewTestApp() - ctx := tApp.NewContext(true, abci.Header{Height: 1, Time: tmtime.Now()}) + ctx := tApp.NewContext(true, abci.Header{Height: 1, Time: time.Date(1998, 1, 1, 0, 0, 0, 0, time.UTC)}) // account which will deposit "initial module account coins" depositor := sdk.AccAddress(crypto.AddressHash([]byte("testdepositor"))) @@ -626,7 +687,7 @@ func (suite *KeeperTestSuite) TestKeeperLiquidation() { suite.Require().NoError(err) // Set up liquidation chain context and run begin blocker - runAtTime := time.Unix(suite.ctx.BlockTime().Unix()+(tc.args.liquidateAfter), 0) + runAtTime := suite.ctx.BlockTime().Add(tc.args.liquidateAfter) liqCtx := suite.ctx.WithBlockTime(runAtTime) hard.BeginBlocker(liqCtx, suite.keeper) @@ -665,7 +726,6 @@ func (suite *KeeperTestSuite) TestKeeperLiquidation() { // Check that the expected auctions have been created auctions := suite.auctionKeeper.GetAllAuctions(liqCtx) - suite.Require().True(len(auctions) > 0) suite.Require().Equal(tc.args.expectedAuctions, auctions) // Check that supplied and borrowed coins have been updated post-liquidation diff --git a/x/hard/types/params.go b/x/hard/types/params.go index 7be059cb..c89ca1d6 100644 --- a/x/hard/types/params.go +++ b/x/hard/types/params.go @@ -109,6 +109,10 @@ func (mm MoneyMarket) Validate() error { return err } + if mm.ConversionFactor.IsNil() || mm.ConversionFactor.LT(sdk.OneInt()) { + return fmt.Errorf("conversion '%s' factor must be ≥ one", mm.ConversionFactor) + } + if err := mm.InterestRateModel.Validate(); err != nil { return err } diff --git a/x/hard/types/params_test.go b/x/hard/types/params_test.go index 690a410c..b7d81c0d 100644 --- a/x/hard/types/params_test.go +++ b/x/hard/types/params_test.go @@ -1,7 +1,6 @@ package types_test import ( - "strings" "testing" sdk "github.com/cosmos/cosmos-sdk/types" @@ -34,6 +33,29 @@ func (suite *ParamTestSuite) TestParamValidation() { expectPass: true, expectedErr: "", }, + { + name: "invalid: conversion factor < one", + args: args{ + minBorrowVal: types.DefaultMinimumBorrowUSDValue, + mms: types.MoneyMarkets{ + { + Denom: "btcb", + BorrowLimit: types.NewBorrowLimit( + false, + sdk.MustNewDecFromStr("100000000000"), + sdk.MustNewDecFromStr("0.5"), + ), + SpotMarketID: "btc:usd", + ConversionFactor: sdk.NewInt(0), + InterestRateModel: types.InterestRateModel{}, + ReserveFactor: sdk.MustNewDecFromStr("0.05"), + KeeperRewardPercentage: sdk.MustNewDecFromStr("0.05"), + }, + }, + }, + expectPass: false, + expectedErr: "conversion '0' factor must be ≥ one", + }, } for _, tc := range testCases { suite.Run(tc.name, func() { @@ -43,7 +65,7 @@ func (suite *ParamTestSuite) TestParamValidation() { suite.NoError(err) } else { suite.Error(err) - suite.Require().True(strings.Contains(err.Error(), tc.expectedErr)) + suite.Require().Contains(err.Error(), tc.expectedErr) } }) }