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@aalavandhan aalavandhan commented Nov 5, 2024

Updated enrichment/debasement fee curve.

Motivation:

The current implementation caps the enrichment rate when dr is high. The side-effect of this is that the vault's effective funding rate (rate vault holders pay to get magnified exposure) reduces.

When dr = 2, for example the perpTVL:vaultTVL ratio is 1:6 and at dr = 3 its 1:9. Say there's a perp tvl of 1m$. Perp's enrichment would be ~200k at dr = 2 and at dr = 3. However, the vault's effective rate would be 200k/6m ~3.3% when dr =2 and 200k/9m ~2.2% when dr = 3 and so on. So it actually continues to go down. (As shown in the following figure)

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Alternatively as dr continues to increase we want the vault's effective funding rate to increase or at least stay constant. This would mean that perp's enrichment rate is unbounded on the upside.
(As shown below)
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openzeppelin-code bot commented Nov 5, 2024

Fee curve update

Generated at commit: 36e93acb815b72025efeb17ad592c2d61fb37ef7

🚨 Report Summary

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0
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3
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@aalavandhan aalavandhan force-pushed the fee-curve-fix branch 2 times, most recently from aae3cd7 to 8fbec06 Compare November 14, 2024 17:44
perpRolloverFee.growth,
ONE.toInt256()
if (dr <= ONE) {
uint256 perpRate = MathUpgradeable.min(
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Let's call this something like negPerpRate (most accurate?) so it's more clear what this intermediate value is.

Then, maybe take the max of -1* negPerpRate and the debasement limit? Seems more in the spirit of the computation.

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LGTM

@aalavandhan aalavandhan merged commit 55cbb39 into main Jan 29, 2025
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@aalavandhan aalavandhan deleted the fee-curve-fix branch January 29, 2025 22:14
aalavandhan added a commit that referenced this pull request May 8, 2025
* Bump coverallsapp/github-action from 2.3.0 to 2.3.3 (#228)

Bumps [coverallsapp/github-action](https://github.com/coverallsapp/github-action) from 2.3.0 to 2.3.3.
- [Release notes](https://github.com/coverallsapp/github-action/releases)
- [Commits](coverallsapp/github-action@v2.3.0...v2.3.3)

---
updated-dependencies:
- dependency-name: coverallsapp/github-action
  dependency-type: direct:production
  update-type: version-update:semver-patch
...

Signed-off-by: dependabot[bot] <support@github.com>
Co-authored-by: dependabot[bot] <49699333+dependabot[bot]@users.noreply.github.com>

* updated cdr pricer (#229)

* Deployed v4.1.0 implementations

* Bump coverallsapp/github-action from 2.3.3 to 2.3.4 (#230)

Bumps [coverallsapp/github-action](https://github.com/coverallsapp/github-action) from 2.3.3 to 2.3.4.
- [Release notes](https://github.com/coverallsapp/github-action/releases)
- [Commits](coverallsapp/github-action@v2.3.3...v2.3.4)

---
updated-dependencies:
- dependency-name: coverallsapp/github-action
  dependency-type: direct:production
  update-type: version-update:semver-patch
...

Signed-off-by: dependabot[bot] <support@github.com>
Co-authored-by: dependabot[bot] <49699333+dependabot[bot]@users.noreply.github.com>

* updated spot subgraph to keep track of vault swap volume

* Vault Refactor & Meta Oracle (#224)

* removed pricing strategies in favor of meta oracle

* Bill broker refactor, using new meta oracle

* Charm vault refactor, using new meta oracle

* Updated Interfaces and Errors

* updated unit tests

* code review changes

* Scalable usdc spot strategy (#231)

Apply suggestions from code review

Co-authored-by: Brandon Iles <brandon@fragments.org>

review fix

caching bool instead of prev deviation

* billy subgraph (#234)

* Deployed new oracle contract and managers (#233)

* deployed new oracle and managers

* updated readme

* Staking subgraph (#235)

* staking subgraph, refreshing store on rebase

* charm wampl vault subgraph

* adds timestamp to swap events subgraph (#236)

* adds timestamp to swap events subgraph

Signed-off-by: nms-7 <nixon.ubud@gmail.com>

* linting

Signed-off-by: nms-7 <nixon.ubud@gmail.com>

* fixed null swap creation with 0 timestamp

Signed-off-by: nms-7 <nixon.ubud@gmail.com>

---------

Signed-off-by: nms-7 <nixon.ubud@gmail.com>

* Bump coverallsapp/github-action from 2.3.4 to 2.3.6 (#238)

Bumps [coverallsapp/github-action](https://github.com/coverallsapp/github-action) from 2.3.4 to 2.3.6.
- [Release notes](https://github.com/coverallsapp/github-action/releases)
- [Commits](coverallsapp/github-action@v2.3.4...v2.3.6)

---
updated-dependencies:
- dependency-name: coverallsapp/github-action
  dependency-type: direct:production
  update-type: version-update:semver-patch
...

Signed-off-by: dependabot[bot] <support@github.com>
Co-authored-by: dependabot[bot] <49699333+dependabot[bot]@users.noreply.github.com>

* Bill broker fee curve change (#237)

* using fee factor instead of percentages to support -ve fees

* unit tests

* code review

* convergent fee curve

* updated charm fee yield logic (#239)

* Fee curve update (#232)

* fee curve update

* code review fixes

* Rollover fee curve update (#240)

* rollover fee handles undersubscribed vault

* bumped up hardhat

* code review comments

* DR based flash swap fees

* comment updates

* updated unit tests to use ethers v6, using custom mocking library

* updated tasks and deps

* updated perp mint fees to be paid to the vault

* removed perp share of fees from flash swaps, all fees go to the vault

* added configurable dr soft bounds (curve cutoff point) to flash swap fees

* updated unit tests

* removed rollover fees from perp

* Daily Rebalance

* updated unit tests

* constant rate enrichment/debasement

* mint2, redeem2

* added linked library to limit contract size

* unit tests

* melding perps immediately after rebalance

* Apply suggestions from code review

Suggestions

Co-authored-by: Brandon Iles <brandon@fragments.org>

* Update spot-contracts/contracts/FeePolicy.sol

Co-authored-by: Brandon Iles <brandon@fragments.org>

* code review fixes

* code review fixes v2

* code review fixes v3

* code review v4

* during rebalance, vault pays perps by transferring tranches into perp's reserve

* rebalance eql

* configurable rebalance freq

* code review v5

* Apply suggestions from code review

Co-authored-by: Brandon Iles <brandon@fragments.org>

* code review fixes

* Code review fixes

Co-authored-by: Brandon Iles <brandon@fragments.org>

* bill broker single sided deposit fix (#253)

* Dev Audit Changes (#252)

* fee policy restructure

* updated perp fee and rebalance handling, audit cleanup

* updated vault fee and rebalance handling, audit cleanup

* interface and lib updates

* updated unit tests

* code review fixes #1

* code review fixes #2

* code review fix #3

* Removed subscription ratio for a global vault:perp tvl (or system ratio) (#254)

* Using a system ratio target

* using system state to calculate fees

* using system state for fees and removed subscription liquidity check

* interface updates

* unit test updates

* rename

* updated deps

---------

Signed-off-by: dependabot[bot] <support@github.com>
Signed-off-by: nms-7 <nixon.ubud@gmail.com>
Co-authored-by: dependabot[bot] <49699333+dependabot[bot]@users.noreply.github.com>
Co-authored-by: nms-7 <57442379+nms-7@users.noreply.github.com>
Co-authored-by: Brandon Iles <brandon@fragments.org>
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