package keeper import ( "fmt" "time" sdk "github.com/cosmos/cosmos-sdk/types" sdkerrors "github.com/cosmos/cosmos-sdk/types/errors" "github.com/cosmos/cosmos-sdk/x/supply" "github.com/kava-labs/kava/x/auction/types" ) // StartSurplusAuction starts a new surplus (forward) auction. func (k Keeper) StartSurplusAuction(ctx sdk.Context, seller string, lot sdk.Coin, bidDenom string) (uint64, error) { auction := types.NewSurplusAuction( seller, lot, bidDenom, types.DistantFuture, ) // NOTE: for the duration of the auction the auction module account holds the lot err := k.supplyKeeper.SendCoinsFromModuleToModule(ctx, seller, types.ModuleName, sdk.NewCoins(lot)) if err != nil { return 0, err } auctionID, err := k.StoreNewAuction(ctx, auction) if err != nil { return 0, err } ctx.EventManager().EmitEvent( sdk.NewEvent( types.EventTypeAuctionStart, sdk.NewAttribute(types.AttributeKeyAuctionID, fmt.Sprintf("%d", auctionID)), sdk.NewAttribute(types.AttributeKeyAuctionType, auction.GetType()), sdk.NewAttribute(types.AttributeKeyBid, auction.Bid.String()), sdk.NewAttribute(types.AttributeKeyLot, auction.Lot.String()), ), ) return auctionID, nil } // StartDebtAuction starts a new debt (reverse) auction. func (k Keeper) StartDebtAuction(ctx sdk.Context, buyer string, bid sdk.Coin, initialLot sdk.Coin, debt sdk.Coin) (uint64, error) { auction := types.NewDebtAuction( buyer, bid, initialLot, types.DistantFuture, debt, ) // This auction type mints coins at close. Need to check module account has minting privileges to avoid potential err in endblocker. macc := k.supplyKeeper.GetModuleAccount(ctx, buyer) if !macc.HasPermission(supply.Minter) { panic(fmt.Errorf("module '%s' does not have '%s' permission", buyer, supply.Minter)) } // NOTE: for the duration of the auction the auction module account holds the debt err := k.supplyKeeper.SendCoinsFromModuleToModule(ctx, buyer, types.ModuleName, sdk.NewCoins(debt)) if err != nil { return 0, err } auctionID, err := k.StoreNewAuction(ctx, auction) if err != nil { return 0, err } ctx.EventManager().EmitEvent( sdk.NewEvent( types.EventTypeAuctionStart, sdk.NewAttribute(types.AttributeKeyAuctionID, fmt.Sprintf("%d", auctionID)), sdk.NewAttribute(types.AttributeKeyAuctionType, auction.GetType()), sdk.NewAttribute(types.AttributeKeyBid, auction.Bid.String()), sdk.NewAttribute(types.AttributeKeyLot, auction.Lot.String()), ), ) return auctionID, nil } // StartCollateralAuction starts a new collateral (2-phase) auction. func (k Keeper) StartCollateralAuction( ctx sdk.Context, seller string, lot, maxBid sdk.Coin, lotReturnAddrs []sdk.AccAddress, lotReturnWeights []sdk.Int, debt sdk.Coin, ) (uint64, error) { weightedAddresses, err := types.NewWeightedAddresses(lotReturnAddrs, lotReturnWeights) if err != nil { return 0, err } auction := types.NewCollateralAuction( seller, lot, types.DistantFuture, maxBid, weightedAddresses, debt, ) // NOTE: for the duration of the auction the auction module account holds the debt and the lot err = k.supplyKeeper.SendCoinsFromModuleToModule(ctx, seller, types.ModuleName, sdk.NewCoins(lot)) if err != nil { return 0, err } err = k.supplyKeeper.SendCoinsFromModuleToModule(ctx, seller, types.ModuleName, sdk.NewCoins(debt)) if err != nil { return 0, err } auctionID, err := k.StoreNewAuction(ctx, auction) if err != nil { return 0, err } ctx.EventManager().EmitEvent( sdk.NewEvent( types.EventTypeAuctionStart, sdk.NewAttribute(types.AttributeKeyAuctionID, fmt.Sprintf("%d", auctionID)), sdk.NewAttribute(types.AttributeKeyAuctionType, auction.GetType()), sdk.NewAttribute(types.AttributeKeyBid, auction.Bid.String()), sdk.NewAttribute(types.AttributeKeyLot, auction.Lot.String()), sdk.NewAttribute(types.AttributeKeyMaxBid, auction.MaxBid.String()), ), ) return auctionID, nil } // PlaceBid places a bid on any auction. func (k Keeper) PlaceBid(ctx sdk.Context, auctionID uint64, bidder sdk.AccAddress, newAmount sdk.Coin) error { auction, found := k.GetAuction(ctx, auctionID) if !found { return sdkerrors.Wrapf(types.ErrAuctionNotFound, "%d", auctionID) } // validation common to all auctions if ctx.BlockTime().After(auction.GetEndTime()) { return sdkerrors.Wrapf(types.ErrAuctionHasExpired, "%d", auctionID) } // move coins and return updated auction var ( err error updatedAuction types.Auction ) switch auctionType := auction.(type) { case types.SurplusAuction: updatedAuction, err = k.PlaceBidSurplus(ctx, auctionType, bidder, newAmount) case types.DebtAuction: updatedAuction, err = k.PlaceBidDebt(ctx, auctionType, bidder, newAmount) case types.CollateralAuction: if !auctionType.IsReversePhase() { updatedAuction, err = k.PlaceForwardBidCollateral(ctx, auctionType, bidder, newAmount) } else { updatedAuction, err = k.PlaceReverseBidCollateral(ctx, auctionType, bidder, newAmount) } default: err = sdkerrors.Wrap(types.ErrUnrecognizedAuctionType, auction.GetType()) } if err != nil { return err } k.SetAuction(ctx, updatedAuction) return nil } // PlaceBidSurplus places a forward bid on a surplus auction, moving coins and returning the updated auction. func (k Keeper) PlaceBidSurplus(ctx sdk.Context, auction types.SurplusAuction, bidder sdk.AccAddress, bid sdk.Coin) (types.SurplusAuction, error) { // Validate new bid if bid.Denom != auction.Bid.Denom { return auction, sdkerrors.Wrapf(types.ErrInvalidBidDenom, "%s ≠ %s)", bid.Denom, auction.Bid.Denom) } minNewBidAmt := auction.Bid.Amount.Add( // new bids must be some % greater than old bid, and at least 1 larger to avoid replacing an old bid at no cost sdk.MaxInt( sdk.NewInt(1), sdk.NewDecFromInt(auction.Bid.Amount).Mul(k.GetParams(ctx).IncrementSurplus).RoundInt(), ), ) if bid.Amount.LT(minNewBidAmt) { return auction, sdkerrors.Wrapf(types.ErrBidTooSmall, "%s < %s%s", bid, minNewBidAmt, auction.Bid.Denom) } // New bidder pays back old bidder // Catch edge cases of a bidder replacing their own bid, or the amount being zero (sending zero coins produces meaningless send events). if !bidder.Equals(auction.Bidder) && !auction.Bid.IsZero() { err := k.supplyKeeper.SendCoinsFromAccountToModule(ctx, bidder, types.ModuleName, sdk.NewCoins(auction.Bid)) if err != nil { return auction, err } err = k.supplyKeeper.SendCoinsFromModuleToAccount(ctx, types.ModuleName, auction.Bidder, sdk.NewCoins(auction.Bid)) if err != nil { return auction, err } } // Increase in bid is burned err := k.supplyKeeper.SendCoinsFromAccountToModule(ctx, bidder, auction.Initiator, sdk.NewCoins(bid.Sub(auction.Bid))) if err != nil { return auction, err } err = k.supplyKeeper.BurnCoins(ctx, auction.Initiator, sdk.NewCoins(bid.Sub(auction.Bid))) if err != nil { return auction, err } // Update Auction auction.Bidder = bidder auction.Bid = bid if !auction.HasReceivedBids { auction.MaxEndTime = ctx.BlockTime().Add(k.GetParams(ctx).MaxAuctionDuration) // set maximum ending time on receipt of first bid auction.HasReceivedBids = true } auction.EndTime = earliestTime(ctx.BlockTime().Add(k.GetParams(ctx).BidDuration), auction.MaxEndTime) // increment timeout, up to MaxEndTime ctx.EventManager().EmitEvent( sdk.NewEvent( types.EventTypeAuctionBid, sdk.NewAttribute(types.AttributeKeyAuctionID, fmt.Sprintf("%d", auction.ID)), sdk.NewAttribute(types.AttributeKeyBidder, auction.Bidder.String()), sdk.NewAttribute(types.AttributeKeyBid, auction.Bid.String()), sdk.NewAttribute(types.AttributeKeyEndTime, fmt.Sprintf("%d", auction.EndTime.Unix())), ), ) return auction, nil } // PlaceForwardBidCollateral places a forward bid on a collateral auction, moving coins and returning the updated auction. func (k Keeper) PlaceForwardBidCollateral(ctx sdk.Context, auction types.CollateralAuction, bidder sdk.AccAddress, bid sdk.Coin) (types.CollateralAuction, error) { // Validate new bid if bid.Denom != auction.Bid.Denom { return auction, sdkerrors.Wrapf(types.ErrInvalidBidDenom, "%s ≠ %s", bid.Denom, auction.Bid.Denom) } if auction.IsReversePhase() { panic("cannot place forward bid on auction in reverse phase") } minNewBidAmt := auction.Bid.Amount.Add( // new bids must be some % greater than old bid, and at least 1 larger to avoid replacing an old bid at no cost sdk.MaxInt( sdk.NewInt(1), sdk.NewDecFromInt(auction.Bid.Amount).Mul(k.GetParams(ctx).IncrementCollateral).RoundInt(), ), ) minNewBidAmt = sdk.MinInt(minNewBidAmt, auction.MaxBid.Amount) // allow new bids to hit MaxBid even though it may be less than the increment % if bid.Amount.LT(minNewBidAmt) { return auction, sdkerrors.Wrapf(types.ErrBidTooSmall, "%s < %s%s", bid, minNewBidAmt, auction.Bid.Denom) } if auction.MaxBid.IsLT(bid) { return auction, sdkerrors.Wrapf(types.ErrBidTooLarge, "%s > %s", bid, auction.MaxBid) } // New bidder pays back old bidder // Catch edge cases of a bidder replacing their own bid, and the amount being zero (sending zero coins produces meaningless send events). if !bidder.Equals(auction.Bidder) && !auction.Bid.IsZero() { err := k.supplyKeeper.SendCoinsFromAccountToModule(ctx, bidder, types.ModuleName, sdk.NewCoins(auction.Bid)) if err != nil { return auction, err } err = k.supplyKeeper.SendCoinsFromModuleToAccount(ctx, types.ModuleName, auction.Bidder, sdk.NewCoins(auction.Bid)) if err != nil { return auction, err } } // Increase in bid sent to auction initiator bidIncrement := bid.Sub(auction.Bid) err := k.supplyKeeper.SendCoinsFromAccountToModule(ctx, bidder, auction.Initiator, sdk.NewCoins(bidIncrement)) if err != nil { return auction, err } // Debt coins are sent to liquidator (until there is no CorrespondingDebt left). Amount sent is equal to bidIncrement (or whatever is left if < bidIncrement). if auction.CorrespondingDebt.IsPositive() { debtAmountToReturn := sdk.MinInt(bidIncrement.Amount, auction.CorrespondingDebt.Amount) debtToReturn := sdk.NewCoin(auction.CorrespondingDebt.Denom, debtAmountToReturn) err = k.supplyKeeper.SendCoinsFromModuleToModule(ctx, types.ModuleName, auction.Initiator, sdk.NewCoins(debtToReturn)) if err != nil { return auction, err } auction.CorrespondingDebt = auction.CorrespondingDebt.Sub(debtToReturn) // debtToReturn will always be ≤ auction.CorrespondingDebt from the MinInt above } // Update Auction auction.Bidder = bidder auction.Bid = bid if !auction.HasReceivedBids { auction.MaxEndTime = ctx.BlockTime().Add(k.GetParams(ctx).MaxAuctionDuration) // set maximum ending time on receipt of first bid auction.HasReceivedBids = true } auction.EndTime = earliestTime(ctx.BlockTime().Add(k.GetParams(ctx).BidDuration), auction.MaxEndTime) // increment timeout, up to MaxEndTime ctx.EventManager().EmitEvent( sdk.NewEvent( types.EventTypeAuctionBid, sdk.NewAttribute(types.AttributeKeyAuctionID, fmt.Sprintf("%d", auction.ID)), sdk.NewAttribute(types.AttributeKeyBidder, auction.Bidder.String()), sdk.NewAttribute(types.AttributeKeyBid, auction.Bid.String()), sdk.NewAttribute(types.AttributeKeyEndTime, fmt.Sprintf("%d", auction.EndTime.Unix())), ), ) return auction, nil } // PlaceReverseBidCollateral places a reverse bid on a collateral auction, moving coins and returning the updated auction. func (k Keeper) PlaceReverseBidCollateral(ctx sdk.Context, auction types.CollateralAuction, bidder sdk.AccAddress, lot sdk.Coin) (types.CollateralAuction, error) { // Validate new bid if lot.Denom != auction.Lot.Denom { return auction, sdkerrors.Wrapf(types.ErrInvalidLotDenom, lot.Denom, auction.Lot.Denom) } if !auction.IsReversePhase() { panic("cannot place reverse bid on auction in forward phase") } maxNewLotAmt := auction.Lot.Amount.Sub( // new lot must be some % less than old lot, and at least 1 smaller to avoid replacing an old bid at no cost sdk.MaxInt( sdk.NewInt(1), sdk.NewDecFromInt(auction.Lot.Amount).Mul(k.GetParams(ctx).IncrementCollateral).RoundInt(), ), ) if lot.Amount.GT(maxNewLotAmt) { return auction, sdkerrors.Wrapf(types.ErrLotTooLarge, "%s > %s%s", lot, maxNewLotAmt, auction.Lot.Denom) } if lot.IsNegative() { return auction, sdkerrors.Wrapf(types.ErrLotTooSmall, "%s < 0%s", lot, auction.Lot.Denom) } // New bidder pays back old bidder // Catch edge cases of a bidder replacing their own bid if !bidder.Equals(auction.Bidder) { err := k.supplyKeeper.SendCoinsFromAccountToModule(ctx, bidder, types.ModuleName, sdk.NewCoins(auction.Bid)) if err != nil { return auction, err } err = k.supplyKeeper.SendCoinsFromModuleToAccount(ctx, types.ModuleName, auction.Bidder, sdk.NewCoins(auction.Bid)) if err != nil { return auction, err } } // Decrease in lot is sent to weighted addresses (normally the CDP depositors) // Note: splitting an integer amount across weighted buckets results in small errors. lotPayouts, err := splitCoinIntoWeightedBuckets(auction.Lot.Sub(lot), auction.LotReturns.Weights) if err != nil { return auction, err } for i, payout := range lotPayouts { // if the payout amount is 0, don't send 0 coins if !payout.IsPositive() { continue } err = k.supplyKeeper.SendCoinsFromModuleToAccount(ctx, types.ModuleName, auction.LotReturns.Addresses[i], sdk.NewCoins(payout)) if err != nil { return auction, err } } // Update Auction auction.Bidder = bidder auction.Lot = lot if !auction.HasReceivedBids { auction.MaxEndTime = ctx.BlockTime().Add(k.GetParams(ctx).MaxAuctionDuration) // set maximum ending time on receipt of first bid auction.HasReceivedBids = true } auction.EndTime = earliestTime(ctx.BlockTime().Add(k.GetParams(ctx).BidDuration), auction.MaxEndTime) // increment timeout, up to MaxEndTime ctx.EventManager().EmitEvent( sdk.NewEvent( types.EventTypeAuctionBid, sdk.NewAttribute(types.AttributeKeyAuctionID, fmt.Sprintf("%d", auction.ID)), sdk.NewAttribute(types.AttributeKeyBidder, auction.Bidder.String()), sdk.NewAttribute(types.AttributeKeyLot, auction.Lot.String()), sdk.NewAttribute(types.AttributeKeyEndTime, fmt.Sprintf("%d", auction.EndTime.Unix())), ), ) return auction, nil } // PlaceBidDebt places a reverse bid on a debt auction, moving coins and returning the updated auction. func (k Keeper) PlaceBidDebt(ctx sdk.Context, auction types.DebtAuction, bidder sdk.AccAddress, lot sdk.Coin) (types.DebtAuction, error) { // Validate new bid if lot.Denom != auction.Lot.Denom { return auction, sdkerrors.Wrapf(types.ErrInvalidLotDenom, lot.Denom, auction.Lot.Denom) } maxNewLotAmt := auction.Lot.Amount.Sub( // new lot must be some % less than old lot, and at least 1 smaller to avoid replacing an old bid at no cost sdk.MaxInt( sdk.NewInt(1), sdk.NewDecFromInt(auction.Lot.Amount).Mul(k.GetParams(ctx).IncrementDebt).RoundInt(), ), ) if lot.Amount.GT(maxNewLotAmt) { return auction, sdkerrors.Wrapf(types.ErrLotTooLarge, "%s > %s%s", lot, maxNewLotAmt, auction.Lot.Denom) } if lot.IsNegative() { return auction, sdkerrors.Wrapf(types.ErrLotTooSmall, "%s ≤ %s%s", lot, sdk.ZeroInt(), auction.Lot.Denom) } // New bidder pays back old bidder // Catch edge cases of a bidder replacing their own bid if !bidder.Equals(auction.Bidder) { err := k.supplyKeeper.SendCoinsFromAccountToModule(ctx, bidder, types.ModuleName, sdk.NewCoins(auction.Bid)) if err != nil { return auction, err } err = k.supplyKeeper.SendCoinsFromModuleToAccount(ctx, types.ModuleName, auction.Bidder, sdk.NewCoins(auction.Bid)) if err != nil { return auction, err } } // Debt coins are sent to liquidator the first time a bid is placed. Amount sent is equal to min of Bid and amount of debt. if auction.Bidder.Equals(supply.NewModuleAddress(auction.Initiator)) { debtAmountToReturn := sdk.MinInt(auction.Bid.Amount, auction.CorrespondingDebt.Amount) debtToReturn := sdk.NewCoin(auction.CorrespondingDebt.Denom, debtAmountToReturn) err := k.supplyKeeper.SendCoinsFromModuleToModule(ctx, types.ModuleName, auction.Initiator, sdk.NewCoins(debtToReturn)) if err != nil { return auction, err } auction.CorrespondingDebt = auction.CorrespondingDebt.Sub(debtToReturn) // debtToReturn will always be ≤ auction.CorrespondingDebt from the MinInt above } // Update Auction auction.Bidder = bidder auction.Lot = lot if !auction.HasReceivedBids { auction.MaxEndTime = ctx.BlockTime().Add(k.GetParams(ctx).MaxAuctionDuration) // set maximum ending time on receipt of first bid auction.HasReceivedBids = true } auction.EndTime = earliestTime(ctx.BlockTime().Add(k.GetParams(ctx).BidDuration), auction.MaxEndTime) // increment timeout, up to MaxEndTime ctx.EventManager().EmitEvent( sdk.NewEvent( types.EventTypeAuctionBid, sdk.NewAttribute(types.AttributeKeyAuctionID, fmt.Sprintf("%d", auction.ID)), sdk.NewAttribute(types.AttributeKeyBidder, auction.Bidder.String()), sdk.NewAttribute(types.AttributeKeyLot, auction.Lot.String()), sdk.NewAttribute(types.AttributeKeyEndTime, fmt.Sprintf("%d", auction.EndTime.Unix())), ), ) return auction, nil } // CloseAuction closes an auction and distributes funds to the highest bidder. func (k Keeper) CloseAuction(ctx sdk.Context, auctionID uint64) error { auction, found := k.GetAuction(ctx, auctionID) if !found { return sdkerrors.Wrapf(types.ErrAuctionNotFound, "%d", auctionID) } if ctx.BlockTime().Before(auction.GetEndTime()) { return sdkerrors.Wrapf(types.ErrAuctionHasNotExpired, "block time %s, auction end time %s", ctx.BlockTime().UTC(), auction.GetEndTime().UTC()) } // payout to the last bidder switch auc := auction.(type) { case types.SurplusAuction: if err := k.PayoutSurplusAuction(ctx, auc); err != nil { return err } case types.DebtAuction: if err := k.PayoutDebtAuction(ctx, auc); err != nil { return err } case types.CollateralAuction: if err := k.PayoutCollateralAuction(ctx, auc); err != nil { return err } default: return sdkerrors.Wrap(types.ErrUnrecognizedAuctionType, auc.GetType()) } k.DeleteAuction(ctx, auctionID) ctx.EventManager().EmitEvent( sdk.NewEvent( types.EventTypeAuctionClose, sdk.NewAttribute(types.AttributeKeyAuctionID, fmt.Sprintf("%d", auctionID)), sdk.NewAttribute(types.AttributeKeyCloseBlock, fmt.Sprintf("%d", ctx.BlockHeight())), ), ) return nil } // PayoutDebtAuction pays out the proceeds for a debt auction, first minting the coins. func (k Keeper) PayoutDebtAuction(ctx sdk.Context, auction types.DebtAuction) error { // create the coins that are needed to pay off the debt err := k.supplyKeeper.MintCoins(ctx, auction.Initiator, sdk.NewCoins(auction.Lot)) if err != nil { panic(fmt.Errorf("could not mint coins: %w", err)) } // send the new coins from the initiator module to the bidder err = k.supplyKeeper.SendCoinsFromModuleToAccount(ctx, auction.Initiator, auction.Bidder, sdk.NewCoins(auction.Lot)) if err != nil { return err } // if there is remaining debt, return it to the calling module to manage if auction.CorrespondingDebt.IsPositive() { err = k.supplyKeeper.SendCoinsFromModuleToModule(ctx, types.ModuleName, auction.Initiator, sdk.NewCoins(auction.CorrespondingDebt)) if err != nil { return err } } return nil } // PayoutSurplusAuction pays out the proceeds for a surplus auction. func (k Keeper) PayoutSurplusAuction(ctx sdk.Context, auction types.SurplusAuction) error { // Send the tokens from the auction module account where they are being managed to the bidder who won the auction err := k.supplyKeeper.SendCoinsFromModuleToAccount(ctx, types.ModuleName, auction.Bidder, sdk.NewCoins(auction.Lot)) if err != nil { return err } return nil } // PayoutCollateralAuction pays out the proceeds for a collateral auction. func (k Keeper) PayoutCollateralAuction(ctx sdk.Context, auction types.CollateralAuction) error { // Send the tokens from the auction module account where they are being managed to the bidder who won the auction err := k.supplyKeeper.SendCoinsFromModuleToAccount(ctx, types.ModuleName, auction.Bidder, sdk.NewCoins(auction.Lot)) if err != nil { return err } // if there is remaining debt after the auction, send it back to the initiating module for management if auction.CorrespondingDebt.IsPositive() { err = k.supplyKeeper.SendCoinsFromModuleToModule(ctx, types.ModuleName, auction.Initiator, sdk.NewCoins(auction.CorrespondingDebt)) if err != nil { return err } } return nil } // CloseExpiredAuctions finds all auctions that are past (or at) their ending times and closes them, paying out to the highest bidder. func (k Keeper) CloseExpiredAuctions(ctx sdk.Context) error { var expiredAuctions []uint64 k.IterateAuctionsByTime(ctx, ctx.BlockTime(), func(id uint64) bool { expiredAuctions = append(expiredAuctions, id) return false }) // Note: iteration and auction closing are in separate loops as db should not be modified during iteration // TODO is this correct? gov modifies during iteration for _, id := range expiredAuctions { if err := k.CloseAuction(ctx, id); err != nil { return err } } return nil } // earliestTime returns the earliest of two times. func earliestTime(t1, t2 time.Time) time.Time { if t1.Before(t2) { return t1 } return t2 // also returned if times are equal } // splitCoinIntoWeightedBuckets divides up some amount of coins according to some weights. func splitCoinIntoWeightedBuckets(coin sdk.Coin, buckets []sdk.Int) ([]sdk.Coin, error) { amounts := splitIntIntoWeightedBuckets(coin.Amount, buckets) result := make([]sdk.Coin, len(amounts)) for i, a := range amounts { result[i] = sdk.NewCoin(coin.Denom, a) } return result, nil }