Merge pull request #7 from morpho-labs/test/estimate-liquidation-gas

Estimate gas cost of liquidations
morpho-org · Jul 10, 2023 · 0a1b22c · 0a1b22c
2 parents c342527 + e1336df
commit 0a1b22c
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Showing 2 changed files with 103 additions and 17 deletions.
diff --git a/hardhat.config.ts b/hardhat.config.ts
@@ -20,6 +20,9 @@ const config: HardhatUserConfig = {
       chainId: 1,
       gasPrice: 0,
       initialBaseFeePerGas: 0,
+      accounts: {
+        count: 102,
+      },
     },
   },
   solidity: {

diff --git a/test/hardhat/Blue.spec.ts b/test/hardhat/Blue.spec.ts
@@ -1,11 +1,16 @@
 import { hexZeroPad } from "@ethersproject/bytes";
 import { setBalance } from "@nomicfoundation/hardhat-network-helpers";
 import { SignerWithAddress } from "@nomiclabs/hardhat-ethers/signers";
+import { expect } from "chai";
 import { BigNumber, Wallet, constants, utils } from "ethers";
 import hre from "hardhat";
 import { Blue, OracleMock, ERC20Mock, IrmMock } from "types";
 
 const iterations = 500;
+const closePositions = false;
+const nbLiquidations = 50;
+// The liquidations gas test expects that 2*nbLiquidations + 1 is strictly less than the number of signers.
+const initBalance = constants.MaxUint256.div(2);
 
 let seed = 42;
 
@@ -18,17 +23,28 @@ function random() {
   return (next() - 1) / 2147483646;
 }
 
+const abiCoder = new utils.AbiCoder();
+
+function identifier(market: Market) {
+  const values = Object.values(market);
+  const encodedMarket = abiCoder.encode(["address", "address", "address", "address", "address", "uint256"], values);
+
+  return Buffer.from(utils.keccak256(encodedMarket).slice(2), "hex");
+}
+
 interface Market {
   borrowableAsset: string;
   collateralAsset: string;
   borrowableOracle: string;
   collateralOracle: string;
   irm: string;
-  lLTV: BigNumber;
+  lltv: BigNumber;
 }
 
 describe("Blue", () => {
   let signers: SignerWithAddress[];
+  let admin: SignerWithAddress;
+  let liquidator: SignerWithAddress;
 
   let blue: Blue;
   let borrowable: ERC20Mock;
@@ -39,26 +55,29 @@ describe("Blue", () => {
   let market: Market;
   let id: Buffer;
 
-  const initBalance = constants.MaxUint256.div(2);
-
   beforeEach(async () => {
     signers = await hre.ethers.getSigners();
+    admin = signers[2 * nbLiquidations];
+    liquidator = signers[2 * nbLiquidations + 1];
 
-    const ERC20MockFactory = await hre.ethers.getContractFactory("ERC20Mock", signers[0]);
+    const ERC20MockFactory = await hre.ethers.getContractFactory("ERC20Mock", admin);
 
     borrowable = await ERC20MockFactory.deploy("DAI", "DAI", 18);
     collateral = await ERC20MockFactory.deploy("Wrapped BTC", "WBTC", 18);
 
-    const OracleMockFactory = await hre.ethers.getContractFactory("OracleMock", signers[0]);
+    const OracleMockFactory = await hre.ethers.getContractFactory("OracleMock", admin);
 
     borrowableOracle = await OracleMockFactory.deploy();
     collateralOracle = await OracleMockFactory.deploy();
 
-    const BlueFactory = await hre.ethers.getContractFactory("Blue", signers[0]);
+    await borrowableOracle.connect(admin).setPrice(BigNumber.WAD);
+    await collateralOracle.connect(admin).setPrice(BigNumber.WAD);
+
+    const BlueFactory = await hre.ethers.getContractFactory("Blue", admin);
 
-    blue = await BlueFactory.deploy(signers[0].address);
+    blue = await BlueFactory.deploy(admin.address);
 
-    const IrmMockFactory = await hre.ethers.getContractFactory("IrmMock", signers[0]);
+    const IrmMockFactory = await hre.ethers.getContractFactory("IrmMock", admin);
 
     irm = await IrmMockFactory.deploy(blue.address);
 
@@ -68,20 +87,17 @@ describe("Blue", () => {
       borrowableOracle: borrowableOracle.address,
       collateralOracle: collateralOracle.address,
       irm: irm.address,
-      lLTV: BigNumber.WAD,
+      lltv: BigNumber.WAD.div(2),
     };
 
-    const abiCoder = new utils.AbiCoder();
-    const values = Object.values(market);
-    const encodedMarket = abiCoder.encode(["address", "address", "address", "address", "address", "uint256"], values);
-
-    id = Buffer.from(utils.keccak256(encodedMarket).slice(2), "hex");
+    id = identifier(market);
 
-    await blue.connect(signers[0]).enableIrm(irm.address);
-    await blue.connect(signers[0]).createMarket(market);
+    await blue.connect(admin).enableLltv(market.lltv);
+    await blue.connect(admin).enableIrm(market.irm);
+    await blue.connect(admin).createMarket(market);
   });
 
-  it("should simulate gas cost", async () => {
+  it("should simulate gas cost [main]", async () => {
     for (let i = 1; i < iterations; ++i) {
       console.log(i, "/", iterations);
 
@@ -115,4 +131,71 @@ describe("Blue", () => {
       }
     }
   });
+
+  it("should simulate gas cost [liquidations]", async () => {
+    let liquidationData = [];
+
+    // Create accounts close to liquidation
+    for (let i = 0; i < 2 * nbLiquidations; ++i) {
+      const user = signers[i];
+      const tranche = Math.floor(1 + i / 2);
+      const lltv = BigNumber.WAD.mul(tranche).div(nbLiquidations + 1);
+
+      const amount = BigNumber.WAD.mul(1 + Math.floor(random() * 100));
+      const borrowedAmount = amount.mul(lltv).div(BigNumber.WAD);
+      const maxSeize = closePositions ? constants.MaxUint256 : amount.div(2);
+
+      market.lltv = lltv;
+      // We use 2 different users to borrow from a market so that liquidations do not put the borrow storage back to 0 on that market.
+      // Consequently, we should only create the market on a particular lltv once.
+      if (i % 2 == 0) {
+        await blue.connect(admin).enableLltv(market.lltv);
+        await blue.connect(admin).enableIrm(market.irm);
+        await blue.connect(admin).createMarket(market);
+        liquidationData.push({
+          lltv: lltv,
+          borrower: user.address,
+          maxSeize: maxSeize,
+        });
+      }
+
+      await setBalance(user.address, initBalance);
+      await borrowable.setBalance(user.address, initBalance);
+      await borrowable.connect(user).approve(blue.address, constants.MaxUint256);
+      await collateral.setBalance(user.address, initBalance);
+      await collateral.connect(user).approve(blue.address, constants.MaxUint256);
+
+      await blue.connect(user).supply(market, amount);
+      await blue.connect(user).supplyCollateral(market, amount);
+
+      await blue.connect(user).borrow(market, borrowedAmount);
+    }
+
+    await borrowableOracle.connect(admin).setPrice(BigNumber.WAD.mul(1000));
+
+    await setBalance(liquidator.address, initBalance);
+    await borrowable.connect(liquidator).approve(blue.address, constants.MaxUint256);
+    await borrowable.setBalance(liquidator.address, initBalance);
+    for (let i = 0; i < liquidationData.length; i++) {
+      let data = liquidationData[i];
+      market.lltv = data.lltv;
+      await blue.connect(liquidator).liquidate(market, data.borrower, data.maxSeize);
+    }
+
+    for (let i = 0; i < 2 * nbLiquidations; i++) {
+      const user = signers[i];
+      const tranche = Math.floor(1 + i / 2);
+      const lltv = BigNumber.WAD.mul(tranche).div(nbLiquidations + 1);
+
+      market.lltv = lltv;
+      id = identifier(market);
+
+      let collat = await blue.collateral(id, user.address);
+      expect(
+        !closePositions || collat == BigNumber.from(0),
+        "did not take the whole collateral when closing the position"
+      ).true;
+      expect(closePositions || collat != BigNumber.from(0), "unexpectedly closed the position").true;
+    }
+  });
 });