package keeper import ( sdk "github.com/cosmos/cosmos-sdk/types" sdkerrors "github.com/cosmos/cosmos-sdk/types/errors" "github.com/kava-labs/kava/x/hard/types" ) // LiqData holds liquidation-related data type LiqData struct { price sdk.Dec ltv sdk.Dec conversionFactor sdk.Int } // AttemptKeeperLiquidation enables a keeper to liquidate an individual borrower's position func (k Keeper) AttemptKeeperLiquidation(ctx sdk.Context, keeper sdk.AccAddress, borrower sdk.AccAddress) error { deposit, found := k.GetDeposit(ctx, borrower) if !found { return types.ErrDepositNotFound } borrow, found := k.GetBorrow(ctx, borrower) if !found { return types.ErrBorrowNotFound } // Call incentive hooks k.BeforeDepositModified(ctx, deposit) k.BeforeBorrowModified(ctx, borrow) k.SyncBorrowInterest(ctx, borrower) k.SyncSupplyInterest(ctx, borrower) deposit, found = k.GetDeposit(ctx, borrower) if !found { return types.ErrDepositNotFound } borrow, found = k.GetBorrow(ctx, borrower) if !found { return types.ErrBorrowNotFound } isWithinRange, err := k.IsWithinValidLtvRange(ctx, deposit, borrow) if err != nil { return err } if isWithinRange { return sdkerrors.Wrapf(types.ErrBorrowNotLiquidatable, "position is within valid LTV range") } // Sending coins to auction module with keeper address getting % of the profits borrowDenoms := getDenoms(borrow.Amount) depositDenoms := getDenoms(deposit.Amount) err = k.SeizeDeposits(ctx, keeper, deposit, borrow, depositDenoms, borrowDenoms) if err != nil { return err } k.DeleteDeposit(ctx, deposit) k.DeleteBorrow(ctx, borrow) return nil } // SeizeDeposits seizes a list of deposits and sends them to auction func (k Keeper) SeizeDeposits(ctx sdk.Context, keeper sdk.AccAddress, deposit types.Deposit, borrow types.Borrow, dDenoms, bDenoms []string) error { liqMap, err := k.LoadLiquidationData(ctx, deposit, borrow) if err != nil { return err } // Seize % of every deposit and send to the keeper keeperRewardCoins := sdk.Coins{} for _, depCoin := range deposit.Amount { mm, _ := k.GetMoneyMarket(ctx, depCoin.Denom) keeperReward := mm.KeeperRewardPercentage.MulInt(depCoin.Amount).TruncateInt() if keeperReward.GT(sdk.ZeroInt()) { // Send keeper their reward keeperCoin := sdk.NewCoin(depCoin.Denom, keeperReward) keeperRewardCoins = append(keeperRewardCoins, keeperCoin) } } if !keeperRewardCoins.Empty() { err := k.supplyKeeper.SendCoinsFromModuleToAccount(ctx, types.ModuleAccountName, keeper, keeperRewardCoins) if err != nil { return err } } // All deposit amounts not given to keeper as rewards are eligible to be auctioned off aucDeposits := deposit.Amount.Sub(keeperRewardCoins) // Build valuation map to hold deposit coin USD valuations depositCoinValues := types.NewValuationMap() for _, deposit := range aucDeposits { dData := liqMap[deposit.Denom] dCoinUsdValue := sdk.NewDecFromInt(deposit.Amount).Quo(sdk.NewDecFromInt(dData.conversionFactor)).Mul(dData.price) depositCoinValues.Increment(deposit.Denom, dCoinUsdValue) } // Build valuation map to hold borrow coin USD valuations borrowCoinValues := types.NewValuationMap() for _, bCoin := range borrow.Amount { bData := liqMap[bCoin.Denom] bCoinUsdValue := sdk.NewDecFromInt(bCoin.Amount).Quo(sdk.NewDecFromInt(bData.conversionFactor)).Mul(bData.price) borrowCoinValues.Increment(bCoin.Denom, bCoinUsdValue) } // Loan-to-Value ratio after sending keeper their reward ltv := borrowCoinValues.Sum().Quo(depositCoinValues.Sum()) 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 if !liquidatedCoins.Empty() { ctx.EventManager().EmitEvent( sdk.NewEvent( types.EventTypeHardLiquidation, sdk.NewAttribute(types.AttributeKeyLiquidatedOwner, deposit.Depositor.String()), sdk.NewAttribute(types.AttributeKeyLiquidatedCoins, liquidatedCoins.String()), sdk.NewAttribute(types.AttributeKeyKeeper, keeper.String()), sdk.NewAttribute(types.AttributeKeyKeeperRewardCoins, keeperRewardCoins.String()), ), ) } // Returns nil if there's no error return err } // StartAuctions attempts to start auctions for seized assets func (k Keeper) StartAuctions(ctx sdk.Context, borrower sdk.AccAddress, borrows, deposits sdk.Coins, depositCoinValues, borrowCoinValues types.ValuationMap, ltv sdk.Dec, liqMap map[string]LiqData) (sdk.Coins, error) { // Sort keys to ensure deterministic behavior bKeys := borrowCoinValues.GetSortedKeys() dKeys := depositCoinValues.GetSortedKeys() // Set up auction constants returnAddrs := []sdk.AccAddress{borrower} weights := []sdk.Int{sdk.NewInt(100)} debt := sdk.NewCoin("debt", sdk.ZeroInt()) macc := k.supplyKeeper.GetModuleAccount(ctx, types.ModuleAccountName) maccCoins := macc.SpendableCoins(ctx.BlockTime()) var liquidatedCoins sdk.Coins for _, bKey := range bKeys { bValue := borrowCoinValues.Get(bKey) maxLotSize := bValue.Quo(ltv) for _, dKey := range dKeys { dValue := depositCoinValues.Get(dKey) if maxLotSize.Equal(sdk.ZeroDec()) { break // exit out of the loop if we have cleared the full amount } if dValue.GTE(maxLotSize) { // We can start an auction for the whole borrow amount] bid := sdk.NewCoin(bKey, borrows.AmountOf(bKey)) lotSize := maxLotSize.MulInt(liqMap[dKey].conversionFactor).Quo(liqMap[dKey].price) if lotSize.TruncateInt().Equal(sdk.ZeroInt()) { continue } lot := sdk.NewCoin(dKey, lotSize.TruncateInt()) insufficientLotFunds := false if lot.Amount.GT(maccCoins.AmountOf(dKey)) { insufficientLotFunds = true lot = sdk.NewCoin(lot.Denom, maccCoins.AmountOf(dKey)) } // Sanity check that we can deliver coins to the liquidator account if deposits.AmountOf(dKey).LT(lot.Amount) { return liquidatedCoins, types.ErrInsufficientCoins } // Start auction: bid = full borrow amount, lot = maxLotSize _, err := k.auctionKeeper.StartCollateralAuction(ctx, types.ModuleAccountName, lot, bid, returnAddrs, weights, debt) if err != nil { return liquidatedCoins, err } // Decrement supplied coins and decrement borrowed coins optimistically err = k.DecrementSuppliedCoins(ctx, sdk.Coins{lot}) if err != nil { return liquidatedCoins, err } err = k.DecrementBorrowedCoins(ctx, sdk.Coins{bid}) if err != nil { return liquidatedCoins, err } // Add lot to liquidated coins liquidatedCoins = liquidatedCoins.Add(lot) // Update USD valuation maps borrowCoinValues.SetZero(bKey) depositCoinValues.Decrement(dKey, maxLotSize) // Update deposits, borrows borrows = borrows.Sub(sdk.NewCoins(bid)) if insufficientLotFunds { deposits = deposits.Sub(sdk.NewCoins(sdk.NewCoin(dKey, deposits.AmountOf(dKey)))) } else { deposits = deposits.Sub(sdk.NewCoins(lot)) } // Update max lot size maxLotSize = sdk.ZeroDec() } else { // We can only start an auction for the partial borrow amount maxBid := dValue.Mul(ltv) bidSize := maxBid.MulInt(liqMap[bKey].conversionFactor).Quo(liqMap[bKey].price) bid := sdk.NewCoin(bKey, bidSize.TruncateInt()) lot := sdk.NewCoin(dKey, deposits.AmountOf(dKey)) if bid.Amount.Equal(sdk.ZeroInt()) || lot.Amount.Equal(sdk.ZeroInt()) { continue } insufficientLotFunds := false if lot.Amount.GT(maccCoins.AmountOf(dKey)) { insufficientLotFunds = true lot = sdk.NewCoin(lot.Denom, maccCoins.AmountOf(dKey)) } // Sanity check that we can deliver coins to the liquidator account if deposits.AmountOf(dKey).LT(lot.Amount) { return liquidatedCoins, types.ErrInsufficientCoins } // Start auction: bid = maxBid, lot = whole deposit amount _, err := k.auctionKeeper.StartCollateralAuction(ctx, types.ModuleAccountName, lot, bid, returnAddrs, weights, debt) if err != nil { return liquidatedCoins, err } // Decrement supplied coins and decrement borrowed coins optimistically err = k.DecrementSuppliedCoins(ctx, sdk.Coins{lot}) if err != nil { return liquidatedCoins, err } err = k.DecrementBorrowedCoins(ctx, sdk.Coins{bid}) if err != nil { return liquidatedCoins, err } // Add lot to liquidated coins liquidatedCoins = liquidatedCoins.Add(lot) // Update variables to account for partial auction borrowCoinValues.Decrement(bKey, maxBid) depositCoinValues.SetZero(dKey) borrows = borrows.Sub(sdk.NewCoins(bid)) if insufficientLotFunds { deposits = deposits.Sub(sdk.NewCoins(sdk.NewCoin(dKey, deposits.AmountOf(dKey)))) } else { deposits = deposits.Sub(sdk.NewCoins(lot)) } // Update max lot size maxLotSize = borrowCoinValues.Get(bKey).Quo(ltv) } } } // Send any remaining deposit back to the original borrower for _, dKey := range dKeys { remaining := deposits.AmountOf(dKey) if remaining.GT(sdk.ZeroInt()) { returnCoin := sdk.NewCoins(sdk.NewCoin(dKey, remaining)) err := k.supplyKeeper.SendCoinsFromModuleToAccount(ctx, types.ModuleAccountName, borrower, returnCoin) if err != nil { return liquidatedCoins, err } } } return liquidatedCoins, nil } // IsWithinValidLtvRange compares a borrow and deposit to see if it's within a valid LTV range at current prices func (k Keeper) IsWithinValidLtvRange(ctx sdk.Context, deposit types.Deposit, borrow types.Borrow) (bool, error) { liqMap, err := k.LoadLiquidationData(ctx, deposit, borrow) if err != nil { return false, err } totalBorrowableUSDAmount := sdk.ZeroDec() for _, depCoin := range deposit.Amount { lData := liqMap[depCoin.Denom] usdValue := sdk.NewDecFromInt(depCoin.Amount).Quo(sdk.NewDecFromInt(lData.conversionFactor)).Mul(lData.price) borrowableUSDAmountForDeposit := usdValue.Mul(lData.ltv) totalBorrowableUSDAmount = totalBorrowableUSDAmount.Add(borrowableUSDAmountForDeposit) } totalBorrowedUSDAmount := sdk.ZeroDec() for _, coin := range borrow.Amount { lData := liqMap[coin.Denom] usdValue := sdk.NewDecFromInt(coin.Amount).Quo(sdk.NewDecFromInt(lData.conversionFactor)).Mul(lData.price) totalBorrowedUSDAmount = totalBorrowedUSDAmount.Add(usdValue) } // Check if the user's has borrowed more than they're allowed to if totalBorrowedUSDAmount.GT(totalBorrowableUSDAmount) { return false, nil } return true, nil } // GetStoreLTV calculates the user's current LTV based on their deposits/borrows in the store // and does not include any outsanding interest. func (k Keeper) GetStoreLTV(ctx sdk.Context, addr sdk.AccAddress) (sdk.Dec, error) { // Fetch deposits and parse coin denoms deposit, found := k.GetDeposit(ctx, addr) if !found { return sdk.ZeroDec(), nil } // Fetch borrow balances and parse coin denoms borrow, found := k.GetBorrow(ctx, addr) if !found { return sdk.ZeroDec(), nil } return k.CalculateLtv(ctx, deposit, borrow) } // CalculateLtv calculates the potential LTV given a user's deposits and borrows. // The boolean returned indicates if the LTV should be added to the store's LTV index. func (k Keeper) CalculateLtv(ctx sdk.Context, deposit types.Deposit, borrow types.Borrow) (sdk.Dec, error) { // Load required liquidation data for every deposit/borrow denom liqMap, err := k.LoadLiquidationData(ctx, deposit, borrow) if err != nil { return sdk.ZeroDec(), nil } // Build valuation map to hold deposit coin USD valuations depositCoinValues := types.NewValuationMap() for _, depCoin := range deposit.Amount { dData := liqMap[depCoin.Denom] dCoinUsdValue := sdk.NewDecFromInt(depCoin.Amount).Quo(sdk.NewDecFromInt(dData.conversionFactor)).Mul(dData.price) depositCoinValues.Increment(depCoin.Denom, dCoinUsdValue) } // Build valuation map to hold borrow coin USD valuations borrowCoinValues := types.NewValuationMap() for _, bCoin := range borrow.Amount { bData := liqMap[bCoin.Denom] bCoinUsdValue := sdk.NewDecFromInt(bCoin.Amount).Quo(sdk.NewDecFromInt(bData.conversionFactor)).Mul(bData.price) borrowCoinValues.Increment(bCoin.Denom, bCoinUsdValue) } // User doesn't have any deposits, catch divide by 0 error sumDeposits := depositCoinValues.Sum() if sumDeposits.Equal(sdk.ZeroDec()) { return sdk.ZeroDec(), nil } // Loan-to-Value ratio return borrowCoinValues.Sum().Quo(sumDeposits), nil } // LoadLiquidationData returns liquidation data, deposit, borrow func (k Keeper) LoadLiquidationData(ctx sdk.Context, deposit types.Deposit, borrow types.Borrow) (map[string]LiqData, error) { liqMap := make(map[string]LiqData) borrowDenoms := getDenoms(borrow.Amount) depositDenoms := getDenoms(deposit.Amount) denoms := removeDuplicates(borrowDenoms, depositDenoms) // Load required liquidation data for every deposit/borrow denom for _, denom := range denoms { mm, found := k.GetMoneyMarket(ctx, denom) if !found { return liqMap, sdkerrors.Wrapf(types.ErrMarketNotFound, "no market found for denom %s", denom) } priceData, err := k.pricefeedKeeper.GetCurrentPrice(ctx, mm.SpotMarketID) if err != nil { return liqMap, err } liqMap[denom] = LiqData{priceData.Price, mm.BorrowLimit.LoanToValue, mm.ConversionFactor} } return liqMap, nil } func getDenoms(coins sdk.Coins) []string { denoms := []string{} for _, coin := range coins { denoms = append(denoms, coin.Denom) } return denoms } func removeDuplicates(one []string, two []string) []string { check := make(map[string]int) fullList := append(one, two...) res := []string{} for _, val := range fullList { check[val] = 1 } for key := range check { res = append(res, key) } return res }