Merge pull request Agoric#7785 from Agoric/7767-reprise

fix(vaults): return correct collateral after liquidation
tgrecojs · May 18, 2023 · c7c58c9 · c7c58c9
2 parents 177d1e6 + d86fc99
commit c7c58c9
Show file tree

Hide file tree

Showing 7 changed files with 281 additions and 35 deletions.
diff --git a/packages/inter-protocol/src/auction/auctionBook.js b/packages/inter-protocol/src/auction/auctionBook.js
@@ -311,12 +311,6 @@ export const prepareAuctionBook = (baggage, zcf, makeRecorderKit) => {
             ? [proceedsLimit, floorDivideBy(proceedsLimit, curAuctionPrice)]
             : [minProceedsTarget, initialCollateralTarget];
 
-          trace('settle', {
-            collateralTarget,
-            proceedsTarget,
-            remainingProceedsGoal,
-          });
-
           const { Collateral } = seat.getProposal().want;
           if (Collateral && AmountMath.isGTE(Collateral, collateralTarget)) {
             seat.exit('unable to satisfy want');
@@ -336,6 +330,13 @@ export const prepareAuctionBook = (baggage, zcf, makeRecorderKit) => {
               proceedsTarget,
             );
           }
+
+          trace('settle', {
+            collateralTarget,
+            proceedsTarget,
+            remainingProceedsGoal: this.state.remainingProceedsGoal,
+          });
+
           return collateralTarget;
         },
 

diff --git a/packages/inter-protocol/src/proposals/econ-behaviors.js b/packages/inter-protocol/src/proposals/econ-behaviors.js
@@ -19,6 +19,7 @@ const trace = makeTracer('RunEconBehaviors', false);
 
 export const SECONDS_PER_HOUR = 60n * 60n;
 export const SECONDS_PER_DAY = 24n * SECONDS_PER_HOUR;
+export const SECONDS_PER_WEEK = 7n * SECONDS_PER_DAY;
 
 /**
  * @typedef {import('../vaultFactory/vaultFactory.js').VaultFactoryContract['publicFacet']} VaultFactoryPublicFacet

diff --git a/packages/inter-protocol/src/vaultFactory/vaultManager.js b/packages/inter-protocol/src/vaultFactory/vaultManager.js
@@ -37,6 +37,7 @@ import {
 import { TransferPartShape } from '@agoric/zoe/src/contractSupport/atomicTransfer.js';
 import {
   atomicRearrange,
+  ceilDivideBy,
   ceilMultiplyBy,
   floorDivideBy,
   floorMultiplyBy,
@@ -639,15 +640,20 @@ export const prepareVaultManagerKit = (
           const { state, facets } = this;
           const { collateralBrand, debtBrand, liquidatingVaults } = this.state;
 
+          const { Collateral: collateralProceeds } = proceeds;
+          /** @type {Amount<'nat'>} */
+          const collateralSold = AmountMath.subtract(
+            totalCollateral,
+            collateralProceeds,
+          );
           state.totalCollateralSold = AmountMath.add(
             state.totalCollateralSold,
-            AmountMath.subtract(totalCollateral, proceeds.Collateral),
+            collateralSold,
           );
 
           const mintedProceeds =
             proceeds.Minted || AmountMath.makeEmpty(debtBrand);
           const accounting = liquidationResults(totalDebt, mintedProceeds);
-          const { Collateral: collateralProceeds } = proceeds;
 
           /** @type {Array<Vault>} */
           const vaultsToLiquidate = [];
@@ -670,7 +676,7 @@ export const prepareVaultManagerKit = (
             ),
           );
 
-          const debtPortion = makeRatioFromAmounts(totalPenalty, totalDebt);
+          const price = makeRatioFromAmounts(mintedProceeds, collateralSold);
           // Liquidation.md describes how to process liquidation proceeds
           const bestToWorst = [...vaultData.entries()].reverse();
           if (AmountMath.isEmpty(accounting.shortfall)) {
@@ -702,8 +708,10 @@ export const prepareVaultManagerKit = (
                 debtAmount,
                 vault.getCurrentDebt(),
               );
-              const vaultDebt = floorMultiplyBy(debtAmount, debtPortion);
-              const collatPostDebt = AmountMath.subtract(vCollat, vaultDebt);
+              const debtInCollateral = ceilDivideBy(debtAmount, price);
+              const collatPostDebt = AmountMath.isGTE(vCollat, debtInCollateral)
+                ? AmountMath.subtract(vCollat, debtInCollateral)
+                : AmountMath.makeEmptyFromAmount(vCollat);
               if (!AmountMath.isEmpty(leftToStage)) {
                 const collat = AmountMath.min(leftToStage, collatPostDebt);
                 leftToStage = AmountMath.subtract(leftToStage, collat);
@@ -851,25 +859,30 @@ export const prepareVaultManagerKit = (
             /** @type {Array<[Vault, { collateralAmount: Amount<'nat'>, debtAmount:  Amount<'nat'>}]>} */
             for (const [vault, balance] of bestToWorst) {
               const { collateralAmount: vCollat, debtAmount } = balance;
-              const vaultDebt = floorMultiplyBy(debtAmount, debtPortion);
-              const collatPostDebt = AmountMath.subtract(vCollat, vaultDebt);
+              const debtInCollateral = ceilDivideBy(debtAmount, price);
+              const collatPostDebt = AmountMath.isGTE(vCollat, debtInCollateral)
+                ? AmountMath.subtract(vCollat, debtInCollateral)
+                : AmountMath.makeEmptyFromAmount(vCollat);
               if (
                 reconstituteVaults &&
+                !AmountMath.isEmpty(collatPostDebt) &&
                 AmountMath.isGTE(collatRemaining, collatPostDebt) &&
                 AmountMath.isGTE(totalDebt, debtAmount)
               ) {
                 collatRemaining = AmountMath.subtract(
                   collatRemaining,
                   collatPostDebt,
                 );
-                shortfallToReserve = AmountMath.subtract(
+                shortfallToReserve = AmountMath.isGTE(
                   shortfallToReserve,
                   debtAmount,
-                );
+                )
+                  ? AmountMath.subtract(shortfallToReserve, debtAmount)
+                  : AmountMath.makeEmptyFromAmount(shortfallToReserve);
                 const seat = vault.getVaultSeat();
                 // must reinstate after atomicRearrange(), so we record them.
                 vaultsToReinstate.push(vault);
-                reduceCollateral(vaultDebt);
+                reduceCollateral(debtInCollateral);
                 transfers.push([liqSeat, seat, { Collateral: collatPostDebt }]);
               } else {
                 reconstituteVaults = false;

diff --git a/packages/inter-protocol/test/vaultFactory/test-vaultFactory.js b/packages/inter-protocol/test/vaultFactory/test-vaultFactory.js
@@ -158,7 +158,7 @@ const setupServices = async (
     priceOrList,
     quoteInterval,
     unitAmountIn,
-    startFrequency,
+    { StartFrequency: startFrequency },
   );
 
   const { consume, produce } = space;