feat!: liquidation directly rewards base assets

CHANGELOG.md

@@ -56,6 +56,7 @@ Ref: https://keepachangelog.com/en/1.0.0/
 - [1123](https://github.com/umee-network/umee/pull/1123) Shorten all leverage and oracle query structs by removing the Request suffix.
 - [1125](https://github.com/umee-network/umee/pull/1125) Refactor: remove proto getters in x/leverage and x/oracle proto types.
 - [1126](https://github.com/umee-network/umee/pull/1126) Update proto json tag from `APY` to `apy`.
+- [1118](https://github.com/umee-network/umee/pull/1118) MsgLiquidate now has reward denom instead of full coin
 - [1130](https://github.com/umee-network/umee/pull/1130) Update proto json tag to lower case.
 - [1140](https://github.com/umee-network/umee/pull/1140) Rename MarketSize query to TotalSuppliedValue, and TokenMarketSize to TotalSupplied.
 - [1188](https://github.com/umee-network/umee/pull/1188) Remove all individual queries which duplicate market_summary fields.
@@ -71,6 +72,7 @@ Ref: https://keepachangelog.com/en/1.0.0/
 - [1094](https://github.com/umee-network/umee/pull/1094) Added TotalCollateral query.
 - [1099](https://github.com/umee-network/umee/pull/1099) Added TotalBorrowed query.
 - [1157](https://github.com/umee-network/umee/pull/1157) Added `PrintOrErr` util function optimizing the CLI code flow.
+- [1118](https://github.com/umee-network/umee/pull/1118) MsgLiquidate rewards base assets instead of requiring an addtional MsgWithdraw
 - [1159](https://github.com/umee-network/umee/pull/1159) Add `max_supply_utilization` and `min_collateral_liquidity` to the x/leverage token registry.
 - [1188](https://github.com/umee-network/umee/pull/1188) Add `liquidity`, `maximum_borrow`, `maximum_collateral`, `minimum_liquidity`, `available_withdraw`, `available_collateralize`, and `utoken_supply` fields to market summary.
 

proto/umee/leverage/v1/tx.proto

@@ -32,7 +32,7 @@ service Msg {
   rpc Repay(MsgRepay) returns (MsgRepayResponse);
 
   // Liquidate allows a user to repay a different user's borrowed coins in exchange for some
-  // of their collateral.
+  // of the target's collateral.
   rpc Liquidate(MsgLiquidate) returns (MsgLiquidateResponse);
 }
 
@@ -85,15 +85,21 @@ message MsgRepay {
   cosmos.base.v1beta1.Coin asset    = 2 [(gogoproto.nullable) = false];
 }
 
-// MsgLiquidate represents a liquidator's request to repay a specific borrower's
-// borrowed base asset type to the module in exchange for collateral reward.
+// MsgLiquidate is the request structure for the Liquidate RPC.
 message MsgLiquidate {
   // Liquidator is the account address performing a liquidation and the signer
   // of the message.
-  string                   liquidator = 1;
-  string                   borrower   = 2;
-  cosmos.base.v1beta1.Coin repayment  = 3 [(gogoproto.nullable) = false];
-  cosmos.base.v1beta1.Coin reward     = 4 [(gogoproto.nullable) = false];
+  string                   liquidator   = 1;
+  // Borrower is the account whose borrow is being repaid, and collateral consumed,
+  // by the liquidation. It does not sign the message.
+  string                   borrower     = 2;
+  // Repayment is the maximum amount of base tokens that the liquidator is willing
+  // to repay.
+  cosmos.base.v1beta1.Coin repayment    = 3 [(gogoproto.nullable) = false];
+  // RewardDenom is the base token denom that the liquidator is willing to accept
+  // as a liquidation reward. The uToken equivalent of any base token rewards
+  // will be taken from the borrower's collateral.
+  string                   reward_denom = 4;
 }
 
 // MsgSupplyResponse defines the Msg/Supply response type.
@@ -113,11 +119,20 @@ message MsgBorrowResponse {}
 
 // MsgRepayResponse defines the Msg/Repay response type.
 message MsgRepayResponse {
+  // Repaid is the amount of debt, in base tokens, that was repaid to the
+  // module by the borrower.
   cosmos.base.v1beta1.Coin repaid = 1 [(gogoproto.nullable) = false];
 }
 
 // MsgLiquidateResponse defines the Msg/Liquidate response type.
 message MsgLiquidateResponse {
-  cosmos.base.v1beta1.Coin repaid = 1 [(gogoproto.nullable) = false];
-  cosmos.base.v1beta1.Coin reward = 2 [(gogoproto.nullable) = false];
+  // Repaid is the amount of debt, in base tokens, that liquidator repaid
+  // to the module on behalf of the borrower.
+  cosmos.base.v1beta1.Coin repaid     = 1 [(gogoproto.nullable) = false];
+  // Collateral is the amount of the borrower's uToken collateral that
+  // was burned as a result of liquidation.
+  cosmos.base.v1beta1.Coin collateral = 2 [(gogoproto.nullable) = false];
+  // Reward is the amount of base tokens that the liquidator received from
+  // the module as reward for the liquidation.
+  cosmos.base.v1beta1.Coin reward     = 3 [(gogoproto.nullable) = false];
 }

x/leverage/client/cli/tx.go

@@ -243,7 +243,7 @@ func GetCmdRepay() *cobra.Command {
 // transaction with a MsgLiquidate message.
 func GetCmdLiquidate() *cobra.Command {
 	cmd := &cobra.Command{
-		Use:   "liquidate [liquidator] [borrower] [amount] [reward]",
+		Use:   "liquidate [liquidator] [borrower] [amount] [reward-denom]",
 		Args:  cobra.ExactArgs(4),
 		Short: "Liquidate a specified amount of a borrower's debt for a chosen reward denomination",
 		RunE: func(cmd *cobra.Command, args []string) error {
@@ -266,13 +266,13 @@ func GetCmdLiquidate() *cobra.Command {
 				return err
 			}
 
-			reward, err := sdk.ParseCoinNormalized(args[3])
-			if err != nil {
+			rewardDenom := args[3]
+
+			msg := types.NewMsgLiquidate(clientCtx.GetFromAddress(), borrowerAddr, asset, rewardDenom)
+			if err = msg.ValidateBasic(); err != nil {
 				return err
 			}
 
-			msg := types.NewMsgLiquidate(clientCtx.GetFromAddress(), borrowerAddr, asset, reward)
-
 			return tx.GenerateOrBroadcastTxCLI(clientCtx, cmd.Flags(), msg)
 		},
 	}

x/leverage/client/tests/tests.go

@@ -296,17 +296,7 @@ func (s *IntegrationTestSuite) TestLeverageScenario() {
 			val.Address.String(),
 			val.Address.String(),
 			"5uumee",
-			"4uumee",
-		},
-		nil,
-	}
-
-	fixCollateral := testTransaction{
-		"add back collateral received from liquidation",
-		cli.GetCmdCollateralize(),
-		[]string{
-			val.Address.String(),
-			"4u/uumee",
+			"uumee",
 		},
 		nil,
 	}
@@ -316,7 +306,7 @@ func (s *IntegrationTestSuite) TestLeverageScenario() {
 		cli.GetCmdRepay(),
 		[]string{
 			val.Address.String(),
-			"51uumee",
+			"50uumee",
 		},
 		nil,
 	}
@@ -326,7 +316,7 @@ func (s *IntegrationTestSuite) TestLeverageScenario() {
 		cli.GetCmdDecollateralize(),
 		[]string{
 			val.Address.String(),
-			"1000u/uumee",
+			"950u/uumee",
 		},
 		nil,
 	}
@@ -336,7 +326,7 @@ func (s *IntegrationTestSuite) TestLeverageScenario() {
 		cli.GetCmdWithdraw(),
 		[]string{
 			val.Address.String(),
-			"1000u/uumee",
+			"950u/uumee",
 		},
 		nil,
 	}
@@ -352,7 +342,7 @@ func (s *IntegrationTestSuite) TestLeverageScenario() {
 			&types.QuerySuppliedResponse{},
 			&types.QuerySuppliedResponse{
 				Supplied: sdk.NewCoins(
-					sdk.NewInt64Coin(umeeapp.BondDenom, 1001),
+					sdk.NewInt64Coin(umeeapp.BondDenom, 1000),
 				),
 			},
 		},
@@ -367,7 +357,7 @@ func (s *IntegrationTestSuite) TestLeverageScenario() {
 			&types.QuerySuppliedResponse{},
 			&types.QuerySuppliedResponse{
 				Supplied: sdk.NewCoins(
-					sdk.NewInt64Coin(umeeapp.BondDenom, 1001),
+					sdk.NewInt64Coin(umeeapp.BondDenom, 1000),
 				),
 			},
 		},
@@ -381,7 +371,7 @@ func (s *IntegrationTestSuite) TestLeverageScenario() {
 			&types.QueryBorrowedResponse{},
 			&types.QueryBorrowedResponse{
 				Borrowed: sdk.NewCoins(
-					sdk.NewInt64Coin(umeeapp.BondDenom, 47),
+					sdk.NewInt64Coin(umeeapp.BondDenom, 51),
 				),
 			},
 		},
@@ -396,7 +386,7 @@ func (s *IntegrationTestSuite) TestLeverageScenario() {
 			&types.QueryBorrowedResponse{},
 			&types.QueryBorrowedResponse{
 				Borrowed: sdk.NewCoins(
-					sdk.NewInt64Coin(umeeapp.BondDenom, 47),
+					sdk.NewInt64Coin(umeeapp.BondDenom, 51),
 				),
 			},
 		},
@@ -441,8 +431,8 @@ func (s *IntegrationTestSuite) TestLeverageScenario() {
 				// From app/test_helpers.go/IntegrationTestNetworkConfig
 				// This result is umee's oracle exchange rate times the
 				// amount supplied.
-				SuppliedValue: sdk.MustNewDecFromStr("0.03424421"),
-				// (1001 / 1000000) umee * 34.21 = 0.03424421
+				SuppliedValue: sdk.MustNewDecFromStr("0.03421"),
+				// (1000 / 1000000) umee * 34.21 = 0.034241
 			},
 		},
 		testQuery{
@@ -456,8 +446,8 @@ func (s *IntegrationTestSuite) TestLeverageScenario() {
 			&types.QuerySuppliedValueResponse{},
 			&types.QuerySuppliedValueResponse{
 				// From app/test_helpers.go/IntegrationTestNetworkConfig
-				SuppliedValue: sdk.MustNewDecFromStr("0.03424421"),
-				// (1001 / 1000000) umee * 34.21 = 0.03424421
+				SuppliedValue: sdk.MustNewDecFromStr("0.03421"),
+				// (1000 / 1000000) umee * 34.21 = 0.03421
 			},
 		},
 		testQuery{
@@ -470,8 +460,8 @@ func (s *IntegrationTestSuite) TestLeverageScenario() {
 			&types.QueryCollateralValueResponse{},
 			&types.QueryCollateralValueResponse{
 				// From app/test_helpers.go/IntegrationTestNetworkConfig
-				CollateralValue: sdk.MustNewDecFromStr("0.03424421"),
-				// (1001 / 1000000) umee * 34.21 = 0.03424421
+				CollateralValue: sdk.MustNewDecFromStr("0.03421"),
+				// (1001 / 1000000) umee * 34.21 = 0.03421
 			},
 		},
 		testQuery{
@@ -484,8 +474,8 @@ func (s *IntegrationTestSuite) TestLeverageScenario() {
 			false,
 			&types.QueryCollateralValueResponse{},
 			&types.QueryCollateralValueResponse{
-				CollateralValue: sdk.MustNewDecFromStr("0.03424421"),
-				// (1001 / 1000000) umee * 34.21 = 0.03424421
+				CollateralValue: sdk.MustNewDecFromStr("0.03421"),
+				// (1000 / 1000000) umee * 34.21 = 0.03421
 			},
 		},
 		testQuery{
@@ -498,8 +488,8 @@ func (s *IntegrationTestSuite) TestLeverageScenario() {
 			&types.QueryBorrowedValueResponse{},
 			&types.QueryBorrowedValueResponse{
 				// From app/test_helpers.go/IntegrationTestNetworkConfig
-				BorrowedValue: sdk.MustNewDecFromStr("0.00160787"),
-				// (51 / 1000000) umee * 34.21 = 0.00160787
+				BorrowedValue: sdk.MustNewDecFromStr("0.00174471"),
+				// (51 / 1000000) umee * 34.21 = 0.00174471
 			},
 		},
 		testQuery{
@@ -513,8 +503,8 @@ func (s *IntegrationTestSuite) TestLeverageScenario() {
 			&types.QueryBorrowedValueResponse{},
 			&types.QueryBorrowedValueResponse{
 				// From app/test_helpers.go/IntegrationTestNetworkConfig
-				BorrowedValue: sdk.MustNewDecFromStr("0.00160787"),
-				// (51 / 1000000) umee * 34.21 = 0.00160787
+				BorrowedValue: sdk.MustNewDecFromStr("0.00174471"),
+				// (51 / 1000000) umee * 34.21 = 0.00174471
 			},
 		},
 		testQuery{
@@ -527,8 +517,8 @@ func (s *IntegrationTestSuite) TestLeverageScenario() {
 			&types.QueryBorrowLimitResponse{},
 			&types.QueryBorrowLimitResponse{
 				// From app/test_helpers.go/IntegrationTestNetworkConfig
-				BorrowLimit: sdk.MustNewDecFromStr("0.0017122105"),
-				// (1001 / 1000000) * 0.05 * 34.21 = 0.0017122105
+				BorrowLimit: sdk.MustNewDecFromStr("0.0017105"),
+				// (1000 / 1000000) * 0.05 * 34.21 = 0.0017105
 			},
 		},
 		testQuery{
@@ -541,8 +531,8 @@ func (s *IntegrationTestSuite) TestLeverageScenario() {
 			&types.QueryLiquidationThresholdResponse{},
 			&types.QueryLiquidationThresholdResponse{
 				// From app/test_helpers.go/IntegrationTestNetworkConfig
-				LiquidationThreshold: sdk.MustNewDecFromStr("0.0017122105"),
-				// (1001 / 1000000) * 0.05 * 34.21 = 0.0017122105
+				LiquidationThreshold: sdk.MustNewDecFromStr("0.0017105"),
+				// (1000 / 1000000) * 0.05 * 34.21 = 0.0017105
 			},
 		},
 	}
@@ -555,17 +545,16 @@ func (s *IntegrationTestSuite) TestLeverageScenario() {
 		supply,
 		addCollateral,
 		borrow,
-		liquidate,
-		fixCollateral,
 	)
 
-	// These transactions are deferred to run after nonzero queries are finished
-	defer s.runTestCases(
+	// These queries run while the supplying and borrowing is active to produce nonzero output
+	s.runTestCases(nonzeroQueries...)
+
+	// These transactions run after nonzero queries are finished
+	s.runTestCases(
+		liquidate,
 		repay,
 		removeCollateral,
 		withdraw,
 	)
-
-	// These queries run while the supplying and borrowing is active to produce nonzero output
-	s.runTestCases(nonzeroQueries...)
 }

x/leverage/keeper/borrows.go

@@ -87,19 +87,21 @@ func (k Keeper) CalculateBorrowLimit(ctx sdk.Context, collateral sdk.Coins) (sdk
 			return sdk.ZeroDec(), err
 		}
 
-		// get USD value of base assets
-		v, err := k.TokenValue(ctx, baseAsset)
-		if err != nil {
-			return sdk.ZeroDec(), err
-		}
-
 		ts, err := k.GetTokenSettings(ctx, baseAsset.Denom)
 		if err != nil {
 			return sdk.ZeroDec(), err
 		}
 
-		// add each collateral coin's weighted value to borrow limit
-		limit = limit.Add(v.Mul(ts.CollateralWeight))
+		// ignore blacklisted tokens
+		if !ts.Blacklist {
+			// get USD value of base assets
+			v, err := k.TokenValue(ctx, baseAsset)
+			if err != nil {
+				return sdk.ZeroDec(), err
+			}
+			// add each collateral coin's weighted value to borrow limit
+			limit = limit.Add(v.Mul(ts.CollateralWeight))
+		}
 	}
 
 	return limit, nil
@@ -120,18 +122,22 @@ func (k Keeper) CalculateLiquidationThreshold(ctx sdk.Context, collateral sdk.Co
 			return sdk.ZeroDec(), err
 		}
 
-		// get USD value of base assets
-		v, err := k.TokenValue(ctx, baseAsset)
-		if err != nil {
-			return sdk.ZeroDec(), err
-		}
-
 		ts, err := k.GetTokenSettings(ctx, baseAsset.Denom)
 		if err != nil {
 			return sdk.ZeroDec(), err
 		}
 
-		totalThreshold = totalThreshold.Add(v.Mul(ts.LiquidationThreshold))
+		// ignore blacklisted tokens
+		if !ts.Blacklist {
+			// get USD value of base assets
+			v, err := k.TokenValue(ctx, baseAsset)
+			if err != nil {
+				return sdk.ZeroDec(), err
+			}
+
+			// add each collateral coin's weighted value to liquidation threshold
+			totalThreshold = totalThreshold.Add(v.Mul(ts.LiquidationThreshold))
+		}
 	}
 
 	return totalThreshold, nil

x/leverage/keeper/filter.go

@@ -0,0 +1,27 @@
+package keeper
+
+import (
+	sdk "github.com/cosmos/cosmos-sdk/types"
+)
+
+// filterCoins returns the subset of an sdk.Coins that meet a given condition
+func (k Keeper) filterCoins(ctx sdk.Context, coins sdk.Coins, accept func(sdk.Coin) bool) sdk.Coins {
+	filtered := sdk.Coins{}
+	for _, c := range coins {
+		if accept(c) {
+			filtered = append(filtered, c)
+		}
+	}
+	return filtered
+}
+
+// filterAcceptedCoins returns the subset of an sdk.Coins that are accepted, non-blacklisted tokens
+func (k Keeper) filterAcceptedCoins(ctx sdk.Context, coins sdk.Coins) sdk.Coins {
+	return k.filterCoins(
+		ctx,
+		coins,
+		func(c sdk.Coin) bool {
+			return k.validateAcceptedAsset(ctx, c) == nil
+		},
+	)
+}