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[Ignition]: Add a forced liquidation feature.
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@0xOmarA
0xOmarA committed Feb 14, 2024
1 parent 78591f0 commit 8198664
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Showing 2 changed files with 446 additions and 29 deletions.
165 changes: 136 additions & 29 deletions packages/ignition/src/blueprint.rs
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Original file line number Diff line number Diff line change
Expand Up @@ -72,6 +72,18 @@ type PoolAdapter = PoolAdapterInterfaceScryptoStub;
type OracleAdapter = OracleAdapterInterfaceScryptoStub;

#[blueprint]
#[types(
Decimal,
ResourceAddress,
NonFungibleGlobalId,
BlueprintId,
Vault,
Vec<Vault>,
FungibleVault,
LockupPeriod,
Volatility,
PoolBlueprintInformation,
)]
mod ignition {
enable_method_auth! {
roles {
Expand Down Expand Up @@ -141,6 +153,7 @@ mod ignition {
withdraw_user_resources => restrict_to: [protocol_owner];
deposit_pool_units => restrict_to: [protocol_owner];
withdraw_pool_units => restrict_to: [protocol_owner];
forcefully_liquidate => restrict_to: [protocol_owner];
/* User methods */
open_liquidity_position => PUBLIC;
close_liquidity_position => PUBLIC;
Expand Down Expand Up @@ -216,6 +229,18 @@ mod ignition {
/// protocol is allowed to deposit or withdraw into these vaults.
pool_units: KeyValueStore<NonFungibleGlobalId, Vault>,

/// A KeyValueStore that stores all of the tokens owed to users of the
/// protocol whose liquidity claims have been forcefully liquidated.
///
/// Note: It is understood that the value type used here can in theory
/// lead to state explosion. However, realistically, there would only
/// be 2 vaults in here since the pools we're interacting with are all
/// of two resources. Perhaps there would be a third if some of the DEXs
/// has an incentive program. However, it is very unlikely that there
/// would be more than that.
forced_liquidation_claims:
KeyValueStore<NonFungibleGlobalId, Vec<Vault>>,

/* Configuration */
/// The upfront reward rates supported by the protocol. This is a map of
/// the lockup period to the reward rate ratio. In this case, the value
Expand Down Expand Up @@ -282,18 +307,22 @@ mod ignition {
let mut ignition = Self {
protocol_resource,
oracle_adapter: oracle_adapter.into(),
pool_information: KeyValueStore::new(),
user_resources_vaults: KeyValueStore::new(),
pool_units: KeyValueStore::new(),
reward_rates: KeyValueStore::new(),
pool_information: KeyValueStore::new_with_registered_type(),
user_resources_vaults:
KeyValueStore::new_with_registered_type(),
pool_units: KeyValueStore::new_with_registered_type(),
reward_rates: KeyValueStore::new_with_registered_type(),
is_open_position_enabled: false,
is_close_position_enabled: false,
maximum_allowed_price_staleness,
maximum_allowed_price_difference_percentage,
user_resource_volatility: KeyValueStore::new(),
user_resource_volatility:
KeyValueStore::new_with_registered_type(),
protocol_resource_reserves: ProtocolResourceReserves::new(
protocol_resource.address(),
),
forced_liquidation_claims:
KeyValueStore::new_with_registered_type(),
};

if let Some(resource_volatility) =
Expand Down Expand Up @@ -617,6 +646,101 @@ mod ignition {
/// Given the non-fungible representing the liquidity receipt, this
/// method closes the liquidity position after the maturity period
/// elapses. The liquidity receipt is burned and the user is given
/// back some amount of assets. If the user has been forcefully
/// liquidated by the owner of the protocol then the amount returned
/// will be the amount they were owed at liquidation time.
///
/// # Arguments
///
/// `liquidity_receipt`: [`NonFungibleBucket`] - A bucket of the non
/// fungible liquidity receipt.
///
/// # Returns
///
/// [`Vec<Bucket>`] - A vector of buckets of the amount to give back to
/// the user.
pub fn close_liquidity_position(
&mut self,
liquidity_receipt: NonFungibleBucket,
) -> Vec<Bucket> {
// Ensure that there is only a single NFT in the bucket, we do not
// service more than a single one at a time.
assert_eq!(
liquidity_receipt.amount(),
Decimal::ONE,
"{}",
MORE_THAN_ONE_LIQUIDITY_RECEIPT_NFTS_ERROR
);

// At this point it is safe to get the non-fungible global id of the
// liquidity receipt NFT.
let liquidity_receipt_global_id = liquidity_receipt
.non_fungible::<LiquidityReceipt>()
.global_id()
.clone();

// If the passed non-fungible is found in the KVStore of liquidity
// claims then it has been forcefully closed and it can be claimed
// from there.
let entry = self
.forced_liquidation_claims
.get_mut(&liquidity_receipt_global_id);
if let Some(mut vaults) = entry {
// The liquidity receipt is no longer needed and can be burned.
liquidity_receipt.burn();

// Take all of the funds in the vaults and return them back to
// the user.
vaults.iter_mut().map(Vault::take_all).collect()
}
// There is no entry in the forced liquidations for this receipt. So
// we can close it.
else {
drop(entry);

// A liquidity position can only be closed when the closing
// period is opened. Otherwise, it can't be. However, this
// does not apply for claiming already liquidated positions.
assert!(
self.is_close_position_enabled,
"{}",
CLOSING_LIQUIDITY_POSITIONS_IS_CLOSED_ERROR
);

let buckets = self.liquidate(liquidity_receipt_global_id);

// The liquidity receipt is no longer needed and can be burned.
liquidity_receipt.burn();

buckets
}
}

/// Forcefully liquidates a liquidity position keeping the resources
/// in a separate claims KVStore such that users can claim them at any
/// point of time.
///
/// # Arguments
///
/// `liquidity_receipt_global_id`: [`NonFungibleGlobalId`] - The non
/// fungible global id of liquidity receipt to liquidate.
pub fn forcefully_liquidate(
&mut self,
liquidity_receipt_global_id: NonFungibleGlobalId,
) {
let buckets = self.liquidate(liquidity_receipt_global_id.clone());
self.forced_liquidation_claims.insert(
liquidity_receipt_global_id,
buckets.into_iter().map(Vault::with_bucket).collect(),
);
}

/// Liquidates a liquidity position after its maturity period has
/// elapsed.
///
/// Given the non-fungible representing the liquidity receipt, this
/// method closes the liquidity position after the maturity period
/// elapses. The liquidity receipt is burned and the user is given
/// back some amount of assets.
///
/// The assets given back to the user depends on what the protocol gets
Expand All @@ -638,32 +762,17 @@ mod ignition {
///
/// # Arguments
///
/// `liquidity_receipt`: [`NonFungibleBucket`] - A bucket of the non
/// fungible liquidity receipt.
/// `liquidity_receipt_global_id`: [`NonFungibleGlobalId`] - The non
/// fungible global id of liquidity receipt to liquidate.
///
/// # Returns
///
/// [`Vec<Bucket>`] - A vector of buckets of the amount to give back to
/// the user.
pub fn close_liquidity_position(
fn liquidate(
&mut self,
liquidity_receipt: NonFungibleBucket,
liquidity_receipt_global_id: NonFungibleGlobalId,
) -> Vec<Bucket> {
// Ensure that we currently allow closing liquidity positions.
assert!(
self.is_close_position_enabled,
"{}",
CLOSING_LIQUIDITY_POSITIONS_IS_CLOSED_ERROR
);
// Ensure that there is only a single NFT in the bucket, we do not
// service more than a single one at a time.
assert_eq!(
liquidity_receipt.amount(),
Decimal::ONE,
"{}",
MORE_THAN_ONE_LIQUIDITY_RECEIPT_NFTS_ERROR
);

let (
mut adapter,
liquidity_receipt_data,
Expand All @@ -673,8 +782,9 @@ mod ignition {
// validating that the resource address is what we expect. We do
// this as we need to check it against the data of the blueprint
// of the pool. So, that must be read first.
let non_fungible =
liquidity_receipt.non_fungible::<LiquidityReceipt>();
let non_fungible = NonFungible::<LiquidityReceipt>::from(
liquidity_receipt_global_id,
);
let liquidity_receipt_data = non_fungible.data();
let (pool_adapter, liquidity_receipt_resource, _) = self
.checked_get_pool_adapter_and_liquidity_receipt(
Expand All @@ -689,9 +799,6 @@ mod ignition {
NOT_A_VALID_LIQUIDITY_RECEIPT_ERROR
);

// Burn the liquidity receipt
liquidity_receipt.burn();

// At this point, the non-fungible can be trusted to belong to
// the liquidity receipt resource of the blueprint.
(
Expand Down
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