feat(liquidator): strategy improvements, use instant seal

interlay · Mar 8, 2023 · fdc8ab9 · fdc8ab9
1 parent ce5e5c0
commit fdc8ab9
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Showing 12 changed files with 205 additions and 65 deletions.
diff --git a/bots/lending-liquidator/src/consts.ts b/bots/lending-liquidator/src/consts.ts
@@ -1,3 +1,4 @@
 import { InterBtc, Interlay, KBtc, Kintsugi, Kusama, Polkadot } from "@interlay/monetary-js";
 
-export const NATIVE_CURRENCIES = [Kintsugi, Kusama, KBtc, Interlay, Polkadot, InterBtc];
+// approximate time per block in ms
+export const APPROX_BLOCK_TIME_MS = 12 * 1000;
diff --git a/bots/lending-liquidator/src/index.ts b/bots/lending-liquidator/src/index.ts
@@ -0,0 +1 @@
+export { startLiquidator } from "./liquidate";
diff --git a/bots/lending-liquidator/src/liquidate.ts b/bots/lending-liquidator/src/liquidate.ts
@@ -1,7 +1,7 @@
-import { ChainBalance, CollateralPosition, CurrencyExt, InterBtcApi, newAccountId, newMonetaryAmount, UndercollateralizedPosition } from "@interlay/interbtc-api";
+import { ChainBalance, CollateralPosition, CurrencyExt, InterBtcApi, newAccountId, newMonetaryAmount, UndercollateralizedPosition, addressOrPairAsAccountId, DefaultTransactionAPI } from "@interlay/interbtc-api";
 import { Currency, ExchangeRate, MonetaryAmount } from "@interlay/monetary-js";
 import { AccountId } from "@polkadot/types/interfaces";
-import { NATIVE_CURRENCIES } from "./consts";
+import { APPROX_BLOCK_TIME_MS } from "./consts";
 
 type CollateralAndValue = {
     collateral: CollateralPosition,
@@ -28,7 +28,7 @@ function findHighestValueCollateral(positions: CollateralPosition[], rates: Map<
     return positions.reduce(
         (previous, current) => {
             const currentReferencePrice = referencePrice(current.amount, rates.get(current.amount.currency));
-            if (previous.collateral.amount.gt(currentReferencePrice)) {
+            if (previous.referenceValue.gt(currentReferencePrice)) {
                 return previous;
             }
             return {
@@ -42,7 +42,6 @@ function findHighestValueCollateral(positions: CollateralPosition[], rates: Map<
 
 function liquidationStrategy(
     interBtcApi: InterBtcApi,
-    chainAssets: Set<CurrencyExt>,
     liquidatorBalance: Map<Currency, ChainBalance>,
     oracleRates: Map<Currency, ExchangeRate<Currency, CurrencyExt>>,
     undercollateralizedBorrowers: UndercollateralizedPosition[]
@@ -55,10 +54,15 @@ function liquidationStrategy(
                 return;
             }
             position.borrowPositions.forEach((loan) => {
-                if (chainAssets.has(loan.accumulatedDebt.currency)) {
-                    const balance = liquidatorBalance.get(loan.accumulatedDebt.currency) as ChainBalance;
-                    const rate = oracleRates.get(loan.accumulatedDebt.currency) as ExchangeRate<Currency, CurrencyExt>;
-                    const repayableAmount = loan.accumulatedDebt.min(balance.free);
+                const totalDebt = loan.amount.add(loan.accumulatedDebt);
+                console.log("debt currency", totalDebt.currency);
+                console.log("highest value collateral ", highestValueCollateral.collateral.amount.currency.ticker, highestValueCollateral.referenceValue.toHuman());
+                if (liquidatorBalance.has(totalDebt.currency)) {
+                    const balance = liquidatorBalance.get(totalDebt.currency) as ChainBalance;
+                    console.log("free bot balance ", balance.free.toHuman());
+                    console.log("borrower debt", totalDebt.toHuman());
+                    const rate = oracleRates.get(totalDebt.currency) as ExchangeRate<Currency, CurrencyExt>;
+                    const repayableAmount = totalDebt.min(balance.free);
                     // TODO: Take close factor into account when consider the collateral's reference value
                     const referenceRepayable = referencePrice(repayableAmount, rate).min(highestValueCollateral.referenceValue);
                     if (referenceRepayable.gt(maxRepayableLoan)) {
@@ -71,37 +75,52 @@ function liquidationStrategy(
         return result;
 }
 
-async function start(interBtcApi: InterBtcApi): Promise<void> {
+export async function startLiquidator(interBtcApi: InterBtcApi): Promise<void> {
+    console.log("Starting lending liquidator...");
     const foreignAssets = await interBtcApi.assetRegistry.getForeignAssets();
-    let chainAssets = new Set([...NATIVE_CURRENCIES, ...foreignAssets]);
-    if (!interBtcApi.account) {
+
+    let nativeCurrency = [interBtcApi.getWrappedCurrency(), interBtcApi.getGovernanceCurrency(), interBtcApi.getRelayChainCurrency()]
+    let chainAssets = new Set([...nativeCurrency, ...foreignAssets]);
+    if (interBtcApi.account == undefined) {
         return Promise.reject("No account set for the lending-liquidator");
     }
-    const accountId = newAccountId(interBtcApi.api, interBtcApi.account.toString());
+    const accountId = addressOrPairAsAccountId(interBtcApi.api, interBtcApi.account);
+    console.log("Listening to new blocks...");
     await interBtcApi.api.rpc.chain.subscribeNewHeads(async (header) => {
-
+        console.log(`Scanning block: #${header.number}`);
         const liquidatorBalance: Map<Currency, ChainBalance> = new Map();
         const oracleRates: Map<Currency, ExchangeRate<Currency, CurrencyExt>> = new Map();
-        const [_balancesPromise, _oraclePromise, undercollateralizedBorrowers, foreignAssets] = await Promise.all([
-            Promise.all([...chainAssets].map((asset) => interBtcApi.tokens.balance(asset, accountId).then((balance) => liquidatorBalance.set(asset, balance)))),
-            Promise.all([...chainAssets].map((asset) => interBtcApi.oracle.getExchangeRate(asset).then((rate) => oracleRates.set(asset, rate)))),
-            interBtcApi.loans.getUndercollateralizedBorrowers(),
-            interBtcApi.assetRegistry.getForeignAssets()
-        ]);
-
-        if (undercollateralizedBorrowers.length > 0) {
-            const [amountToRepay, collateralToLiquidate, borrower] = liquidationStrategy(
+        console.log("awaiting big promise");
+        try {
+            const [_balancesPromise, _oraclePromise, undercollateralizedBorrowers, foreignAssets] = await Promise.all([
+                Promise.all([...chainAssets].map((asset) => interBtcApi.tokens.balance(asset, accountId).then((balance) => liquidatorBalance.set(asset, balance)))),
+                Promise.all([...chainAssets].map((asset) => interBtcApi.oracle.getExchangeRate(asset).then((rate) => oracleRates.set(asset, rate)))),
+                interBtcApi.loans.getUndercollateralizedBorrowers(),
+                interBtcApi.assetRegistry.getForeignAssets()
+            ]);
+
+            console.log(`undercollateralized borrowers: ${undercollateralizedBorrowers.length}`);
+            const potentialLiquidation = liquidationStrategy(
                 interBtcApi,
-                chainAssets,
                 liquidatorBalance,
                 oracleRates,
                 undercollateralizedBorrowers
             ) as [MonetaryAmount<CurrencyExt>, CurrencyExt, AccountId];
-            await interBtcApi.loans.liquidateBorrowPosition(borrower, amountToRepay.currency, amountToRepay, collateralToLiquidate);
+            if (potentialLiquidation) {
+                const [amountToRepay, collateralToLiquidate, borrower] = potentialLiquidation;
+                console.log(`Liquidating ${borrower.toString()} with ${amountToRepay.toHuman()} ${amountToRepay.currency.ticker}, collateral: ${collateralToLiquidate.ticker}`);
+                // Either our liquidation will go through, or someone else's will
+                await Promise.all([
+                    DefaultTransactionAPI.waitForEvent(interBtcApi.api, interBtcApi.api.events.loans.ActivatedMarket, 10 * APPROX_BLOCK_TIME_MS),
+                    interBtcApi.loans.liquidateBorrowPosition(borrower, amountToRepay.currency, amountToRepay, collateralToLiquidate)
+                ]);
+            }
+
+        } catch (error) {
+            console.log("found an error: ", error);   
         }
 
         // Add any new foreign assets to `chainAssets`
         chainAssets = new Set([...Array.from(chainAssets), ...foreignAssets]);
-        console.log(`Scanned block: #${header.number}`);
     });
 }
diff --git a/bots/lending-liquidator/test/config.ts b/bots/lending-liquidator/test/config.ts
@@ -2,6 +2,3 @@ export const DEFAULT_PARACHAIN_ENDPOINT = "ws://127.0.0.1:9944";
 export const DEFAULT_SUDO_URI = "//Alice";
 export const DEFAULT_USER_1_URI = "//Dave";
 export const DEFAULT_USER_2_URI = "//Eve";
-
-// approximate time per block in ms
-export const APPROX_BLOCK_TIME_MS = 12 * 1000;
diff --git a/bots/lending-liquidator/test/integration/liquidate.test.ts b/bots/lending-liquidator/test/integration/liquidate.test.ts
@@ -4,8 +4,10 @@ import { KeyringPair } from "@polkadot/keyring/types";
 import { AccountId } from "@polkadot/types/interfaces";
 import { expect } from "chai";
 
-import { APPROX_BLOCK_TIME_MS, DEFAULT_PARACHAIN_ENDPOINT, DEFAULT_SUDO_URI, DEFAULT_USER_1_URI, DEFAULT_USER_2_URI } from "../config";
-import { setExchangeRate, waitForNthBlock, waitRegisteredLendingMarkets } from "../utils";
+import { DEFAULT_PARACHAIN_ENDPOINT, DEFAULT_SUDO_URI, DEFAULT_USER_1_URI, DEFAULT_USER_2_URI } from "../config";
+import { setExchangeRate, waitRegisteredLendingMarkets } from "../utils";
+import { startLiquidator } from "../../src";
+import { APPROX_BLOCK_TIME_MS } from "../../src/consts";
 
 describe("liquidate", () => {
     const approx10Blocks = 10 * APPROX_BLOCK_TIME_MS;
@@ -33,7 +35,6 @@ describe("liquidate", () => {
 
     before(async function () {
         api = await createSubstrateAPI(DEFAULT_PARACHAIN_ENDPOINT);
-        await waitForNthBlock(api);
         keyring = new Keyring({ type: "sr25519" });
         userAccount = keyring.addFromUri(DEFAULT_USER_1_URI);
         user2Account = keyring.addFromUri(DEFAULT_USER_2_URI);
@@ -141,13 +142,14 @@ describe("liquidate", () => {
         await userInterBtcAPI.loans.borrow(borrowAmount1.currency, borrowAmount1);
         await userInterBtcAPI.loans.borrow(borrowAmount2.currency, borrowAmount2);
 
-        // start liquidation listener
-        // lendingLiquidationChecker(user2InterBtcAPI)
-        // TODO!: start the bot listener logic
+        // Start liquidation listener
+        // Do not `await` so it runs in the background
+        startLiquidator(sudoInterBtcAPI);
+
         const liquidationEventFoundPromise = DefaultTransactionAPI.waitForEvent(sudoInterBtcAPI.api, sudoInterBtcAPI.api.events.loans.LiquidatedBorrow, approx10Blocks);
 
         // crash the collateral exchange rate
-        const newExchangeRate = "0x00000000000000000001000000000000";
+        const newExchangeRate = "0x00000000000000000000001000000000";
         await setExchangeRate(sudoInterBtcAPI, depositAmount.currency, newExchangeRate);
 
         // expect liquidation event to happen

diff --git a/docker-compose.yml b/docker-compose.yml
@@ -0,0 +1,108 @@
+version: "3.8"
+services:
+    interbtc:
+        image: "interlayhq/interbtc:1.21.10"
+        command:
+            - --rpc-external
+            - --ws-external
+            - --rpc-methods=unsafe
+            - --dev
+            - --instant-seal
+        ports:
+            - "9933:9933"
+            - "9944:9944"
+    bitcoind:
+        image: "ruimarinho/bitcoin-core:22"
+        command:
+            - -regtest
+            - -server
+            - -rpcbind=0.0.0.0
+            - -rpcallowip=0.0.0.0/0
+            - -rpcuser=rpcuser
+            - -rpcpassword=rpcpassword
+            - -fallbackfee=0.0002
+        ports:
+            - "18443:18443"
+    bitcoin-cli:
+        image: "ruimarinho/bitcoin-core:22"
+        command:
+            - /bin/sh
+            - -c
+            - |
+                bitcoin-cli -regtest -rpcconnect=bitcoind -rpcwait -rpcuser=rpcuser -rpcpassword=rpcpassword createwallet Alice
+                ALICE_ADDRESS=$$(bitcoin-cli -regtest -rpcconnect=bitcoind -rpcwait -rpcuser=rpcuser -rpcpassword=rpcpassword -rpcwallet=Alice getnewaddress)
+                # coins need 100 confirmations to be spendable
+                bitcoin-cli -regtest -rpcconnect=bitcoind -rpcwait -rpcuser=rpcuser -rpcpassword=rpcpassword generatetoaddress 101 $${ALICE_ADDRESS}
+    electrs:
+        image: "interlayhq/electrs:latest"
+        command:
+            - electrs
+            - -vvvv
+            - --network
+            - regtest
+            - --jsonrpc-import
+            - --cors
+            - "*"
+            - --cookie
+            - "rpcuser:rpcpassword"
+            - --daemon-rpc-addr
+            - "bitcoind:18443"
+            - --http-addr
+            - "[::0]:3002"
+            - --index-unspendables
+        ports:
+            - "3002:3002"
+        restart: always
+    oracle:
+        image: "interlayhq/interbtc-clients:oracle-parachain-metadata-kintsugi-testnet-1.19.7"
+        command:
+            - oracle-parachain-metadata-kintsugi-testnet
+            - --keyring=bob
+            - --btc-parachain-url=ws://interbtc:9944
+        environment:
+            RUST_LOG: info
+        volumes:
+            - ./docker/oracle-config.json:/oracle-config.json
+    vault_1:
+        image: "interlayhq/interbtc-clients:vault-parachain-metadata-kintsugi-testnet-1.19.7"
+        command:
+            - vault-parachain-metadata-kintsugi-testnet
+            - --keyfile=/keyfile.json
+            - --keyname=vault_1
+            - --auto-register=KSM=10000000000000
+            - --auto-register=KINT=180000000000000
+            - --btc-parachain-url=ws://interbtc:9944
+            - --bitcoin-relay-start-height=1
+        environment: &client-env
+            BITCOIN_RPC_URL: http://bitcoind:18443
+            BITCOIN_RPC_USER: rpcuser
+            BITCOIN_RPC_PASS: rpcpassword
+            RUST_LOG: info
+        volumes:
+            - ./docker/vault_1-keyfile.json:/keyfile.json
+    vault_2:
+        image: "interlayhq/interbtc-clients:vault-parachain-metadata-kintsugi-testnet-1.19.7"
+        command:
+            - vault-parachain-metadata-kintsugi-testnet
+            - --keyfile=/keyfile.json
+            - --keyname=vault_2
+            - --auto-register=KSM=10000000000000
+            - --auto-register=KINT=180000000000000
+            - --btc-parachain-url=ws://interbtc:9944
+            - --bitcoin-relay-start-height=1
+        environment: *client-env
+        volumes:
+            - ./docker/vault_2-keyfile.json:/keyfile.json
+    vault_3:
+        image: "interlayhq/interbtc-clients:vault-parachain-metadata-kintsugi-testnet-1.19.7"
+        command:
+            - vault-parachain-metadata-kintsugi-testnet
+            - --keyfile=/keyfile.json
+            - --keyname=vault_3
+            - --auto-register=KSM=10000000000000
+            - --auto-register=KINT=180000000000000
+            - --btc-parachain-url=ws://interbtc:9944
+            - --bitcoin-relay-start-height=1
+        environment: *client-env
+        volumes:
+            - ./docker/vault_3-keyfile.json:/keyfile.json
diff --git a/docker/oracle-config.json b/docker/oracle-config.json
@@ -0,0 +1,32 @@
+{
+    "currencies": {
+        "BTC": {
+            "name": "Bitcoin",
+            "decimals": 8
+        },
+        "KINT": {
+            "name": "Kintsugi",
+            "decimals": 12
+        },
+        "KSM": {
+            "name": "Kusama",
+            "decimals": 12
+        }
+    },
+    "prices": [
+        {
+            "pair": [
+                "BTC",
+                "KINT"
+            ],
+            "value": 230
+        },
+        {
+            "pair": [
+                "BTC",
+                "KSM"
+            ],
+            "value": 230
+        }
+    ]
+}
diff --git a/docker/vault_1-keyfile.json b/docker/vault_1-keyfile.json
@@ -0,0 +1,3 @@
+{
+  "vault_1": "//Charlie//stash"
+}
diff --git a/docker/vault_2-keyfile.json b/docker/vault_2-keyfile.json
@@ -0,0 +1,3 @@
+{
+  "vault_2": "//Dave//stash"
+}
diff --git a/docker/vault_3-keyfile.json b/docker/vault_3-keyfile.json
@@ -0,0 +1,3 @@
+{
+  "vault_3": "//Eve//stash"
+}
diff --git a/scripts/docker-setup.sh b/scripts/docker-setup.sh
diff --git a/scripts/setup-parachain-docker.ts b/scripts/setup-parachain-docker.ts