additional liquidity tests (#129)

saucepoint · web-flow · commit 4d3218e2d78c · 2024-06-25T16:45:09.000-04:00
* additional increase liquidity tests

* edge case of using cached fees for autocompound

* wip
diff --git a/.forge-snapshots/FullRangeAddInitialLiquidity.snap b/.forge-snapshots/FullRangeAddInitialLiquidity.snap
@@ -1 +1 @@
-311181
+354477
diff --git a/.forge-snapshots/FullRangeAddLiquidity.snap b/.forge-snapshots/FullRangeAddLiquidity.snap
@@ -1 +1 @@
-122990
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diff --git a/.forge-snapshots/FullRangeFirstSwap.snap b/.forge-snapshots/FullRangeFirstSwap.snap
@@ -1 +1 @@
-80220
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diff --git a/.forge-snapshots/FullRangeInitialize.snap b/.forge-snapshots/FullRangeInitialize.snap
@@ -1 +1 @@
-1016976
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diff --git a/.forge-snapshots/FullRangeRemoveLiquidity.snap b/.forge-snapshots/FullRangeRemoveLiquidity.snap
@@ -1 +1 @@
-110566
+146394
diff --git a/.forge-snapshots/FullRangeRemoveLiquidityAndRebalance.snap b/.forge-snapshots/FullRangeRemoveLiquidityAndRebalance.snap
@@ -1 +1 @@
-240044
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diff --git a/.forge-snapshots/FullRangeSecondSwap.snap b/.forge-snapshots/FullRangeSecondSwap.snap
@@ -1 +1 @@
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diff --git a/.forge-snapshots/FullRangeSwap.snap b/.forge-snapshots/FullRangeSwap.snap
@@ -1 +1 @@
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diff --git a/.forge-snapshots/OracleGrow10Slots.snap b/.forge-snapshots/OracleGrow10Slots.snap
@@ -1 +1 @@
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diff --git a/.forge-snapshots/OracleGrow10SlotsCardinalityGreater.snap b/.forge-snapshots/OracleGrow10SlotsCardinalityGreater.snap
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diff --git a/.forge-snapshots/OracleGrow1Slot.snap b/.forge-snapshots/OracleGrow1Slot.snap
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diff --git a/.forge-snapshots/OracleGrow1SlotCardinalityGreater.snap b/.forge-snapshots/OracleGrow1SlotCardinalityGreater.snap
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-23545
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diff --git a/.forge-snapshots/OracleInitialize.snap b/.forge-snapshots/OracleInitialize.snap
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diff --git a/.forge-snapshots/TWAMMSubmitOrder.snap b/.forge-snapshots/TWAMMSubmitOrder.snap
@@ -1 +1 @@
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diff --git a/.forge-snapshots/decreaseLiquidity_erc20.snap b/.forge-snapshots/decreaseLiquidity_erc20.snap
@@ -1 +1 @@
-119430
+190044
diff --git a/.forge-snapshots/decreaseLiquidity_erc6909.snap b/.forge-snapshots/decreaseLiquidity_erc6909.snap
@@ -1 +1 @@
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diff --git a/.forge-snapshots/increaseLiquidity_erc20.snap b/.forge-snapshots/increaseLiquidity_erc20.snap
@@ -1 +1 @@
-60600
+173212
diff --git a/.forge-snapshots/increaseLiquidity_erc6909.snap b/.forge-snapshots/increaseLiquidity_erc6909.snap
@@ -1 +1 @@
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diff --git a/.forge-snapshots/mintWithLiquidity.snap b/.forge-snapshots/mintWithLiquidity.snap
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diff --git a/contracts/base/BaseLiquidityManagement.sol b/contracts/base/BaseLiquidityManagement.sol
@@ -126,13 +126,45 @@ contract BaseLiquidityManagement is IBaseLiquidityManagement, SafeCallback {
             position.liquidity
         );
 
+        console2.log(callerFeesAccrued.amount0());
+        console2.log(callerFeesAccrued.amount1());
+        console2.log("totalFees");
+        console2.log(totalFeesAccrued.amount0());
+        console2.log(totalFeesAccrued.amount1());
+
         // Calculate the accurate tokens owed to the caller.
         // If the totalFeesAccrued equals the callerFeesAccrued then the total owed to the caller is just the liquidityDelta.
         // If the totalFeesAccrued is greater than the callerFeesAccrued, we must account for the difference.
         (int128 callerDelta0, int128 callerDelta1) = totalFeesAccrued != callerFeesAccrued
             ? _calculateCallerDeltas(liquidityDelta, totalFeesAccrued, callerFeesAccrued)
             : (liquidityDelta.amount0(), liquidityDelta.amount1());
 
+        // An edge case:
+        // assume alice and bob are on the same range
+        // and 20 token fee revenue is posted (i.e. swap revenue or donate)
+
+        // bob calls collects()
+        //   liquidityDelta:    20
+        //   totalFeesAccrued:  20
+        //   callerFeesAccrued:  5
+        //   (5 tokens sent to bob, and posm caches the 15 tokens for alice)
+
+        // assume another 20 token fee revenue is posted (a net new 5 tokens for bob and 15 new tokens for alice)
+        // alice now has 30 tokens of fee revenue, half of custodied by posm and the other half unclaimed in the PM
+
+        // when alice increases her liquidity, using exactly 30 tokens (autocompound):
+        //   liquidityDelta:   -10
+        //   totalFeesAccrued:  20 (new fees: 5 for bob, 15 for alice)
+        //   callerFeesAccrued: 30 (alice's fees, per feeGrowthInside)
+
+        // naively resolving deltas:
+        // posm:  take 5 tokens (bob's fees), liquidityDelta is now: -15
+        // posm:  pay PM the 15 tokens (alice's cached fees)
+        // alice: pay nothing, as its a pure and exact autocompound
+
+        // to solve:
+        // we need a way to discern cached fees and use them against liquidityDelta
+
         // Update position storage, sanitizing the tokensOwed and callerDelta values first.
         // if callerDelta > 0, then even after re-investing old fees, the caller still has some amount to collect that were not added into the position so they are accounted.
         // if callerDelta <= 0, then tokensOwed0 and tokensOwed1 should be zero'd out as all fees were re-invested into a new position.
diff --git a/test/position-managers/IncreaseLiquidity.t.sol b/test/position-managers/IncreaseLiquidity.t.sol
@@ -108,10 +108,67 @@ contract IncreaseLiquidityTest is Test, Deployers, GasSnapshot, Fuzzers {
             token1Owed
         );
 
+        uint256 balance0BeforeAlice = currency0.balanceOf(alice);
+        uint256 balance1BeforeAlice = currency1.balanceOf(alice);
+
         vm.prank(alice);
         lpm.increaseLiquidity(tokenIdAlice, liquidityDelta, ZERO_BYTES, false);
 
-        // TODO: assertions, currently increasing liquidity does not perfectly use the fees
+        // alice did not spend any tokens
+        assertEq(balance0BeforeAlice, currency0.balanceOf(alice));
+        assertEq(balance1BeforeAlice, currency1.balanceOf(alice));
+
+        // alice spent all of the fees, approximately
+        (token0Owed, token1Owed) = lpm.feesOwed(tokenIdAlice);
+        assertApproxEqAbs(token0Owed, 0, 20 wei);
+        assertApproxEqAbs(token1Owed, 0, 20 wei);
+    }
+
+    // uses donate to simulate fee revenue
+    function test_increaseLiquidity_withExactFees_donate() public {
+        // Alice and Bob provide liquidity on the range
+        // Alice uses her exact fees to increase liquidity (compounding)
+
+        uint256 liquidityAlice = 3_000e18;
+        uint256 liquidityBob = 1_000e18;
+
+        // alice provides liquidity
+        vm.prank(alice);
+        (uint256 tokenIdAlice,) = lpm.mint(range, liquidityAlice, block.timestamp + 1, alice, ZERO_BYTES);
+
+        // bob provides liquidity
+        vm.prank(bob);
+        lpm.mint(range, liquidityBob, block.timestamp + 1, bob, ZERO_BYTES);
+
+        // donate to create fees
+        donateRouter.donate(key, 0.2e18, 0.2e18, ZERO_BYTES);
+
+        // alice uses her exact fees to increase liquidity
+        (uint256 token0Owed, uint256 token1Owed) = lpm.feesOwed(tokenIdAlice);
+
+        (uint160 sqrtPriceX96,,,) = StateLibrary.getSlot0(manager, range.poolKey.toId());
+        uint256 liquidityDelta = LiquidityAmounts.getLiquidityForAmounts(
+            sqrtPriceX96,
+            TickMath.getSqrtPriceAtTick(range.tickLower),
+            TickMath.getSqrtPriceAtTick(range.tickUpper),
+            token0Owed,
+            token1Owed
+        );
+
+        uint256 balance0BeforeAlice = currency0.balanceOf(alice);
+        uint256 balance1BeforeAlice = currency1.balanceOf(alice);
+
+        vm.prank(alice);
+        lpm.increaseLiquidity(tokenIdAlice, liquidityDelta, ZERO_BYTES, false);
+
+        // alice did not spend any tokens
+        assertEq(balance0BeforeAlice, currency0.balanceOf(alice));
+        assertEq(balance1BeforeAlice, currency1.balanceOf(alice));
+
+        // alice spent all of the fees
+        (token0Owed, token1Owed) = lpm.feesOwed(tokenIdAlice);
+        assertEq(token0Owed, 0);
+        assertEq(token1Owed, 0);
     }
 
     function test_increaseLiquidity_withExcessFees() public {
@@ -254,4 +311,135 @@ contract IncreaseLiquidityTest is Test, Deployers, GasSnapshot, Fuzzers {
             );
         }
     }
+
+    function test_increaseLiquidity_withExactFees_withExactCachedFees() public {
+        // Alice and Bob provide liquidity on the range
+        // Alice uses her fees to increase liquidity. Both unclaimed fees and cached fees are used to exactly increase the liquidity
+        uint256 liquidityAlice = 3_000e18;
+        uint256 liquidityBob = 1_000e18;
+        uint256 totalLiquidity = liquidityAlice + liquidityBob;
+
+        // alice provides liquidity
+        vm.prank(alice);
+        (uint256 tokenIdAlice,) = lpm.mint(range, liquidityAlice, block.timestamp + 1, alice, ZERO_BYTES);
+
+        // bob provides liquidity
+        vm.prank(bob);
+        (uint256 tokenIdBob,) = lpm.mint(range, liquidityBob, block.timestamp + 1, bob, ZERO_BYTES);
+
+        // swap to create fees
+        uint256 swapAmount = 0.001e18;
+        swap(key, true, -int256(swapAmount), ZERO_BYTES);
+        swap(key, false, -int256(swapAmount), ZERO_BYTES); // move the price back
+
+        (uint256 token0Owed, uint256 token1Owed) = lpm.feesOwed(tokenIdAlice);
+
+        // bob collects fees so some of alice's fees are now cached
+        vm.prank(bob);
+        lpm.collect(tokenIdBob, bob, ZERO_BYTES, false);
+
+        // swap to create more fees
+        swap(key, true, -int256(swapAmount), ZERO_BYTES);
+        swap(key, false, -int256(swapAmount), ZERO_BYTES); // move the price back
+
+        (uint256 newToken0Owed, uint256 newToken1Owed) = lpm.feesOwed(tokenIdAlice);
+        // alice's fees should be doubled
+        assertApproxEqAbs(newToken0Owed, token0Owed * 2, 2 wei);
+        assertApproxEqAbs(newToken1Owed, token1Owed * 2, 2 wei);
+
+        uint256 balance0AliceBefore = currency0.balanceOf(alice);
+        uint256 balance1AliceBefore = currency1.balanceOf(alice);
+
+        // alice will use ALL of her fees to increase liquidity
+        {
+            (uint160 sqrtPriceX96,,,) = StateLibrary.getSlot0(manager, range.poolKey.toId());
+            uint256 liquidityDelta = LiquidityAmounts.getLiquidityForAmounts(
+                sqrtPriceX96,
+                TickMath.getSqrtPriceAtTick(range.tickLower),
+                TickMath.getSqrtPriceAtTick(range.tickUpper),
+                newToken0Owed,
+                newToken1Owed
+            );
+
+            vm.prank(alice);
+            lpm.increaseLiquidity(tokenIdAlice, liquidityDelta, ZERO_BYTES, false);
+        }
+
+        // alice did not spend any tokens, approximately
+        assertApproxEqAbs(balance0AliceBefore, currency0.balanceOf(alice), 0.00001 ether);
+        assertApproxEqAbs(balance1AliceBefore, currency1.balanceOf(alice), 0.00001 ether);
+
+        (token0Owed, token1Owed) = lpm.feesOwed(tokenIdAlice);
+        assertEq(token0Owed, 0);
+        assertEq(token1Owed, 0);
+    }
+
+    // uses donate to simulate fee revenue
+    function test_increaseLiquidity_withExactFees_withExactCachedFees_donate() public {
+        // Alice and Bob provide liquidity on the range
+        // Alice uses her fees to increase liquidity. Both unclaimed fees and cached fees are used to exactly increase the liquidity
+        uint256 liquidityAlice = 3_000e18;
+        uint256 liquidityBob = 1_000e18;
+        uint256 totalLiquidity = liquidityAlice + liquidityBob;
+
+        // alice provides liquidity
+        vm.prank(alice);
+        (uint256 tokenIdAlice,) = lpm.mint(range, liquidityAlice, block.timestamp + 1, alice, ZERO_BYTES);
+
+        // bob provides liquidity
+        vm.prank(bob);
+        (uint256 tokenIdBob,) = lpm.mint(range, liquidityBob, block.timestamp + 1, bob, ZERO_BYTES);
+
+        // donate to create fees
+        donateRouter.donate(key, 20e18, 20e18, ZERO_BYTES);
+
+        (uint256 token0Owed, uint256 token1Owed) = lpm.feesOwed(tokenIdAlice);
+
+        // bob collects fees so some of alice's fees are now cached
+        vm.prank(bob);
+        lpm.collect(tokenIdBob, bob, ZERO_BYTES, false);
+
+        // donate to create more fees
+        donateRouter.donate(key, 20e18, 20e18, ZERO_BYTES);
+
+        (uint256 newToken0Owed, uint256 newToken1Owed) = lpm.feesOwed(tokenIdAlice);
+        // alice's fees should be doubled
+        assertApproxEqAbs(newToken0Owed, token0Owed * 2, 1 wei);
+        assertApproxEqAbs(newToken1Owed, token1Owed * 2, 1 wei);
+
+        uint256 balance0AliceBefore = currency0.balanceOf(alice);
+        uint256 balance1AliceBefore = currency1.balanceOf(alice);
+
+        // alice will use ALL of her fees to increase liquidity
+        {
+            (uint160 sqrtPriceX96,,,) = StateLibrary.getSlot0(manager, range.poolKey.toId());
+            uint256 liquidityDelta = LiquidityAmounts.getLiquidityForAmounts(
+                sqrtPriceX96,
+                TickMath.getSqrtPriceAtTick(range.tickLower),
+                TickMath.getSqrtPriceAtTick(range.tickUpper),
+                newToken0Owed,
+                newToken1Owed
+            );
+
+            vm.prank(alice);
+            lpm.increaseLiquidity(tokenIdAlice, liquidityDelta, ZERO_BYTES, false);
+        }
+
+        // alice did not spend any tokens
+        assertEq(balance0AliceBefore, currency0.balanceOf(alice), "alice spent token0");
+        assertEq(balance1AliceBefore, currency1.balanceOf(alice), "alice spent token1");
+        
+        // passes: but WRONG!!!
+        // assertEq(balance0AliceBefore - currency0.balanceOf(alice), 10e18);
+        // assertEq(balance1AliceBefore - currency1.balanceOf(alice), 10e18);
+
+        (token0Owed, token1Owed) = lpm.feesOwed(tokenIdAlice);
+        assertEq(token0Owed, 0);
+        assertEq(token1Owed, 0);
+
+        // bob still collects 5
+        (token0Owed, token1Owed) = lpm.feesOwed(tokenIdBob);
+        assertApproxEqAbs(token0Owed, 5e18, 1 wei);
+        assertApproxEqAbs(token1Owed, 5e18, 1 wei);
+    }
 }
