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fix liquidation rounding #638

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Merged
merged 11 commits into from
Dec 12, 2023
Merged

fix liquidation rounding #638

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289ad5e
fix: liquidation rounding
MathisGD Dec 7, 2023
f4272f9
fix: compilation without via-ir
MathisGD Dec 7, 2023
e14da6e
test: test liquidation fix
MathisGD Dec 7, 2023
53938ce
ci(foundry): use test profile
Rubilmax Dec 7, 2023
f5ecb61
refactor: fix stack too deep
MathisGD Dec 8, 2023
abe3041
Merge remote-tracking branch 'origin/fix/liquidation' into fix/liquid…
MathisGD Dec 8, 2023
bab5dea
no memory vars
adhusson Dec 8, 2023
ff4c0ef
Merge pull request #641 from adhusson/fix/liquidation-no-memory-vars
MathisGD Dec 8, 2023
d7bc725
chore: fmt
MathisGD Dec 8, 2023
9700691
Merge remote-tracking branch 'origin/post-cantina' into fix/liquidation
MathisGD Dec 11, 2023
cc70d77
style: naming temp
MathisGD Dec 12, 2023
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2 changes: 1 addition & 1 deletion .github/workflows/foundry.yml
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Expand Up @@ -39,7 +39,7 @@ jobs:
uses: foundry-rs/foundry-toolchain@v1

- name: Run Forge tests in ${{ matrix.type }} mode
run: forge test -vvv
run: yarn test:forge -vvv
env:
FOUNDRY_FUZZ_RUNS: ${{ matrix.fuzz-runs }}
FOUNDRY_FUZZ_MAX_TEST_REJECTS: ${{ matrix.max-test-rejects }}
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11 changes: 5 additions & 6 deletions src/Morpho.sol
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Expand Up @@ -357,7 +357,6 @@ contract Morpho is IMorphoStaticTyping {

_accrueInterest(marketParams, id);

uint256 repaidAssets;
{
uint256 collateralPrice = IOracle(marketParams.oracle).price();

Expand All @@ -370,15 +369,15 @@ contract Morpho is IMorphoStaticTyping {
);

if (seizedAssets > 0) {
repaidAssets =
uint256 intermediateVar =
seizedAssets.mulDivUp(collateralPrice, ORACLE_PRICE_SCALE).wDivUp(liquidationIncentiveFactor);
repaidShares = repaidAssets.toSharesDown(market[id].totalBorrowAssets, market[id].totalBorrowShares);
repaidShares = intermediateVar.toSharesDown(market[id].totalBorrowAssets, market[id].totalBorrowShares);
} else {
repaidAssets = repaidShares.toAssetsUp(market[id].totalBorrowAssets, market[id].totalBorrowShares);
seizedAssets =
repaidAssets.wMulDown(liquidationIncentiveFactor).mulDivDown(ORACLE_PRICE_SCALE, collateralPrice);
seizedAssets = repaidShares.toAssetsDown(market[id].totalBorrowAssets, market[id].totalBorrowShares)
.wMulDown(liquidationIncentiveFactor).mulDivDown(ORACLE_PRICE_SCALE, collateralPrice);
}
}
uint256 repaidAssets = repaidShares.toAssetsUp(market[id].totalBorrowAssets, market[id].totalBorrowShares);

position[id][borrower].borrowShares -= repaidShares.toUint128();
market[id].totalBorrowShares -= repaidShares.toUint128();
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28 changes: 26 additions & 2 deletions test/forge/integration/LiquidateIntegrationTest.sol
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Expand Up @@ -206,8 +206,8 @@ contract LiquidateIntegrationTest is BaseTest {
sharesRepaid = bound(sharesRepaid, 1, Math.min(borrowShares, maxSharesRepaid));

uint256 expectedRepaid = sharesRepaid.toAssetsUp(morpho.totalBorrowAssets(id), morpho.totalBorrowShares(id));
uint256 expectedSeized =
expectedRepaid.wMulDown(liquidationIncentiveFactor).mulDivDown(ORACLE_PRICE_SCALE, params.priceCollateral);
uint256 expectedSeized = sharesRepaid.toAssetsDown(morpho.totalBorrowAssets(id), morpho.totalBorrowShares(id))
.wMulDown(liquidationIncentiveFactor).mulDivDown(ORACLE_PRICE_SCALE, params.priceCollateral);

loanToken.setBalance(LIQUIDATOR, params.amountBorrowed);

Expand Down Expand Up @@ -354,4 +354,28 @@ contract LiquidateIntegrationTest is BaseTest {
vm.prank(LIQUIDATOR);
morpho.liquidate(marketParams, BORROWER, collateralAmount, 0, hex"");
}

function testSeizedAssetsRoundUp() public {
_setLltv(0.75e18);
_supply(100e18);

uint256 amountCollateral = 400;
uint256 amountBorrowed = 300;
collateralToken.setBalance(BORROWER, amountCollateral);

vm.startPrank(BORROWER);
morpho.supplyCollateral(marketParams, amountCollateral, BORROWER, hex"");
morpho.borrow(marketParams, amountBorrowed, 0, BORROWER, BORROWER);
vm.stopPrank();

oracle.setPrice(ORACLE_PRICE_SCALE - 0.01e18);

loanToken.setBalance(LIQUIDATOR, amountBorrowed);

vm.prank(LIQUIDATOR);
(uint256 seizedAssets, uint256 repaidAssets) = morpho.liquidate(marketParams, BORROWER, 0, 1, hex"");

assertEq(seizedAssets, 0, "seizedAssets");
assertEq(repaidAssets, 1, "repaidAssets");
}
}