R4R: Move liquidator functions to cdp module (#280)

* wip: tpyes and keeper methods

* wip: iterators

* wip: types and keeper methods

* wip: add msgs

* wip: client methods

* wip: rebase develop

* wip: types tests

* wip: keeper tests, small fixes

* wip: add cdp tests

* wip: deposit tests

* wip: keeper tests

* wip: tests and module methods

* feat: error when fetching expired price

* feat: conversion factor for external assets

* feat: debt floor for new cdps

* feat: save deposits on export genesis

* feat: ensure messages implement msg

* feat: index deposits by status

* fix: stray comment

* wip: address review comments

* address review comments

* wip: move liquidation to cdp module

* wip: handle liquidations directly

* wip: use new auction interface

* feat: auction collateral in cdp begin block

* feat: update param validation

* feat: surplus and debt auctions

* address review comments

* address review comments

* fix: auction multiple deposits

* clean up netting function

.gitignore

@@ -14,3 +14,6 @@
 # Exclude build files
 vendor
 build
+
+# IDE files
+*.vscode

app/app.go

@@ -229,18 +229,19 @@ func NewApp(logger log.Logger, db dbm.DB, traceStore io.Writer, loadLatest bool,
 		pricefeedSubspace,
 		pricefeed.DefaultCodespace)
 	// NewKeeper(cdc *codec.Codec, key sdk.StoreKey, paramstore subspace.Subspace, pfk types.PricefeedKeeper, sk types.SupplyKeeper, codespace sdk.CodespaceType)
+	app.auctionKeeper = auction.NewKeeper(
+		app.cdc,
+		keys[auction.StoreKey],
+		app.supplyKeeper,
+		auctionSubspace)
 	app.cdpKeeper = cdp.NewKeeper(
 		app.cdc,
 		keys[cdp.StoreKey],
 		cdpSubspace,
 		app.pricefeedKeeper,
+		app.auctionKeeper,
 		app.supplyKeeper,
 		cdp.DefaultCodespace)
-	app.auctionKeeper = auction.NewKeeper(
-		app.cdc,
-		keys[auction.StoreKey],
-		app.supplyKeeper,
-		auctionSubspace)
 
 	// register the staking hooks
 	// NOTE: stakingKeeper above is passed by reference, so that it will contain these hooks

app/test_common.go

@@ -53,20 +53,20 @@ func NewTestApp() TestApp {
 	return TestApp{App: *app}
 }
 
-func (tApp TestApp) GetAccountKeeper() auth.AccountKeeper   { return tApp.accountKeeper }
-func (tApp TestApp) GetBankKeeper() bank.Keeper             { return tApp.bankKeeper }
-func (tApp TestApp) GetSupplyKeeper() supply.Keeper         { return tApp.supplyKeeper }
-func (tApp TestApp) GetStakingKeeper() staking.Keeper       { return tApp.stakingKeeper }
-func (tApp TestApp) GetSlashingKeeper() slashing.Keeper     { return tApp.slashingKeeper }
-func (tApp TestApp) GetMintKeeper() mint.Keeper             { return tApp.mintKeeper }
-func (tApp TestApp) GetDistrKeeper() distribution.Keeper    { return tApp.distrKeeper }
-func (tApp TestApp) GetGovKeeper() gov.Keeper               { return tApp.govKeeper }
-func (tApp TestApp) GetCrisisKeeper() crisis.Keeper         { return tApp.crisisKeeper }
-func (tApp TestApp) GetParamsKeeper() params.Keeper         { return tApp.paramsKeeper }
-func (tApp TestApp) GetVVKeeper() validatorvesting.Keeper   { return tApp.vvKeeper }
-func (tApp TestApp) GetAuctionKeeper() auction.Keeper       { return tApp.auctionKeeper }
-func (tApp TestApp) GetCDPKeeper() cdp.Keeper               { return tApp.cdpKeeper }
-func (tApp TestApp) GetPriceFeedKeeper() pricefeed.Keeper   { return tApp.pricefeedKeeper }
+func (tApp TestApp) GetAccountKeeper() auth.AccountKeeper { return tApp.accountKeeper }
+func (tApp TestApp) GetBankKeeper() bank.Keeper           { return tApp.bankKeeper }
+func (tApp TestApp) GetSupplyKeeper() supply.Keeper       { return tApp.supplyKeeper }
+func (tApp TestApp) GetStakingKeeper() staking.Keeper     { return tApp.stakingKeeper }
+func (tApp TestApp) GetSlashingKeeper() slashing.Keeper   { return tApp.slashingKeeper }
+func (tApp TestApp) GetMintKeeper() mint.Keeper           { return tApp.mintKeeper }
+func (tApp TestApp) GetDistrKeeper() distribution.Keeper  { return tApp.distrKeeper }
+func (tApp TestApp) GetGovKeeper() gov.Keeper             { return tApp.govKeeper }
+func (tApp TestApp) GetCrisisKeeper() crisis.Keeper       { return tApp.crisisKeeper }
+func (tApp TestApp) GetParamsKeeper() params.Keeper       { return tApp.paramsKeeper }
+func (tApp TestApp) GetVVKeeper() validatorvesting.Keeper { return tApp.vvKeeper }
+func (tApp TestApp) GetAuctionKeeper() auction.Keeper     { return tApp.auctionKeeper }
+func (tApp TestApp) GetCDPKeeper() cdp.Keeper             { return tApp.cdpKeeper }
+func (tApp TestApp) GetPriceFeedKeeper() pricefeed.Keeper { return tApp.pricefeedKeeper }
 
 // This calls InitChain on the app using the default genesis state, overwitten with any passed in genesis states
 func (tApp TestApp) InitializeFromGenesisStates(genesisStates ...GenesisState) TestApp {

x/auction/keeper/keeper.go

@@ -23,6 +23,9 @@ type Keeper struct {
 
 // NewKeeper returns a new auction keeper.
 func NewKeeper(cdc *codec.Codec, storeKey sdk.StoreKey, supplyKeeper types.SupplyKeeper, paramstore subspace.Subspace) Keeper {
+	if addr := supplyKeeper.GetModuleAddress(types.ModuleName); addr == nil {
+		panic(fmt.Sprintf("%s module account has not been set", types.ModuleName))
+	}
 	return Keeper{
 		supplyKeeper:  supplyKeeper,
 		storeKey:      storeKey,

x/auction/types/expected_keepers.go

@@ -7,6 +7,7 @@ import (
 
 // SupplyKeeper defines the expected supply Keeper
 type SupplyKeeper interface {
+	GetModuleAddress(name string) sdk.AccAddress
 	GetModuleAccount(ctx sdk.Context, moduleName string) supplyexported.ModuleAccountI
 
 	SendCoinsFromModuleToModule(ctx sdk.Context, sender, recipient string, amt sdk.Coins) sdk.Error

x/cdp/abci.go

@@ -1,11 +1,14 @@
 package cdp
 
 import (
+	"fmt"
+
 	sdk "github.com/cosmos/cosmos-sdk/types"
+	"github.com/kava-labs/kava/x/cdp/types"
 	abci "github.com/tendermint/tendermint/abci/types"
 )
 
-// BeginBlock compounds the debt in outstanding cdps and liquidates cdps that are below the required collateralization ratio
+// BeginBlocker compounds the debt in outstanding cdps and liquidates cdps that are below the required collateralization ratio
 func BeginBlocker(ctx sdk.Context, req abci.RequestBeginBlock, k Keeper) {
 	params := k.GetParams(ctx)
 	previousBlockTime, found := k.GetPreviousBlockTime(ctx)
@@ -18,7 +21,26 @@ func BeginBlocker(ctx sdk.Context, req abci.RequestBeginBlock, k Keeper) {
 			k.HandleNewDebt(ctx, cp.Denom, dp.Denom, timeElapsed)
 		}
 
-		k.LiquidateCdps(ctx, cp.MarketID, cp.Denom, cp.LiquidationRatio)
+		err := k.LiquidateCdps(ctx, cp.MarketID, cp.Denom, cp.LiquidationRatio)
+		if err != nil {
+			ctx.EventManager().EmitEvent(
+				sdk.NewEvent(
+					EventTypeBeginBlockerFatal,
+					sdk.NewAttribute(sdk.AttributeKeyModule, fmt.Sprintf("%s", ModuleName)),
+					sdk.NewAttribute(types.AttributeKeyError, fmt.Sprintf("%s", err)),
+				),
+			)
+		}
+	}
+	err := k.RunSurplusAndDebtAuctions(ctx)
+	if err != nil {
+		ctx.EventManager().EmitEvent(
+			sdk.NewEvent(
+				EventTypeBeginBlockerFatal,
+				sdk.NewAttribute(sdk.AttributeKeyModule, fmt.Sprintf("%s", ModuleName)),
+				sdk.NewAttribute(types.AttributeKeyError, fmt.Sprintf("%s", err)),
+			),
+		)
 	}
 	k.SetPreviousBlockTime(ctx, ctx.BlockTime())
 	return

x/cdp/abci_test.go

@@ -8,6 +8,7 @@ import (
 	sdk "github.com/cosmos/cosmos-sdk/types"
 	"github.com/cosmos/cosmos-sdk/x/simulation"
 	"github.com/kava-labs/kava/app"
+	"github.com/kava-labs/kava/x/auction"
 	"github.com/kava-labs/kava/x/cdp"
 	"github.com/stretchr/testify/suite"
 	abci "github.com/tendermint/tendermint/abci/types"
@@ -116,7 +117,7 @@ func (suite *ModuleTestSuite) TestBeginBlock() {
 	btcLiquidations := int(seizedBtcCollateral.Quo(i(100000000)).Int64())
 	suite.Equal(len(suite.liquidations.btc), btcLiquidations)
 
-	acc = sk.GetModuleAccount(suite.ctx, cdp.LiquidatorMacc)
+	acc = sk.GetModuleAccount(suite.ctx, auction.ModuleName)
 	suite.Equal(suite.liquidations.debt, acc.GetCoins().AmountOf("debt").Int64())
 
 }

x/cdp/alias.go

@@ -11,8 +11,6 @@ import (
 )
 
 const (
-	StatusNil                       = types.StatusNil
-	StatusLiquidated                = types.StatusLiquidated
 	DefaultCodespace                = types.DefaultCodespace
 	CodeCdpAlreadyExists            = types.CodeCdpAlreadyExists
 	CodeCollateralLengthInvalid     = types.CodeCollateralLengthInvalid
@@ -36,15 +34,17 @@ const (
 	EventTypeCdpClose               = types.EventTypeCdpClose
 	EventTypeCdpWithdrawal          = types.EventTypeCdpWithdrawal
 	EventTypeCdpLiquidation         = types.EventTypeCdpLiquidation
+	EventTypeBeginBlockerFatal      = types.EventTypeBeginBlockerFatal
 	AttributeKeyCdpID               = types.AttributeKeyCdpID
 	AttributeKeyDepositor           = types.AttributeKeyDepositor
 	AttributeValueCategory          = types.AttributeValueCategory
-	LiquidatorMacc                  = types.LiquidatorMacc
+	AttributeKeyError               = types.AttributeKeyError
 	ModuleName                      = types.ModuleName
 	StoreKey                        = types.StoreKey
 	RouterKey                       = types.RouterKey
 	QuerierRoute                    = types.QuerierRoute
 	DefaultParamspace               = types.DefaultParamspace
+	LiquidatorMacc                  = types.LiquidatorMacc
 	QueryGetCdp                     = types.QueryGetCdp
 	QueryGetCdps                    = types.QueryGetCdps
 	QueryGetCdpsByCollateralization = types.QueryGetCdpsByCollateralization
@@ -58,7 +58,6 @@ var (
 	// functions aliases
 	NewCDP                      = types.NewCDP
 	RegisterCodec               = types.RegisterCodec
-	StatusFromByte              = types.StatusFromByte
 	NewDeposit                  = types.NewDeposit
 	ErrCdpAlreadyExists         = types.ErrCdpAlreadyExists
 	ErrInvalidCollateralLength  = types.ErrInvalidCollateralLength
@@ -116,6 +115,7 @@ var (
 	CollateralRatioIndexPrefix = types.CollateralRatioIndexPrefix
 	CdpIDKey                   = types.CdpIDKey
 	DebtDenomKey               = types.DebtDenomKey
+	GovDenomKey                = types.GovDenomKey
 	DepositKeyPrefix           = types.DepositKeyPrefix
 	PrincipalKeyPrefix         = types.PrincipalKeyPrefix
 	AccumulatorKeyPrefix       = types.AccumulatorKeyPrefix
@@ -124,12 +124,17 @@ var (
 	KeyCollateralParams        = types.KeyCollateralParams
 	KeyDebtParams              = types.KeyDebtParams
 	KeyCircuitBreaker          = types.KeyCircuitBreaker
+	KeyDebtThreshold           = types.KeyDebtThreshold
+	KeySurplusThreshold        = types.KeySurplusThreshold
 	DefaultGlobalDebt          = types.DefaultGlobalDebt
 	DefaultCircuitBreaker      = types.DefaultCircuitBreaker
 	DefaultCollateralParams    = types.DefaultCollateralParams
 	DefaultDebtParams          = types.DefaultDebtParams
 	DefaultCdpStartingID       = types.DefaultCdpStartingID
 	DefaultDebtDenom           = types.DefaultDebtDenom
+	DefaultGovDenom            = types.DefaultGovDenom
+	DefaultSurplusThreshold    = types.DefaultSurplusThreshold
+	DefaultDebtThreshold       = types.DefaultDebtThreshold
 	DefaultPreviousBlockTime   = types.DefaultPreviousBlockTime
 	MaxSortableDec             = types.MaxSortableDec
 )
@@ -138,7 +143,6 @@ type (
 	CDP                    = types.CDP
 	CDPs                   = types.CDPs
 	Deposit                = types.Deposit
-	DepositStatus          = types.DepositStatus
 	Deposits               = types.Deposits
 	SupplyKeeper           = types.SupplyKeeper
 	PricefeedKeeper        = types.PricefeedKeeper

x/cdp/client/cli/query.go

@@ -47,8 +47,9 @@ func QueryCdpCmd(queryRoute string, cdc *codec.Codec) *cobra.Command {
 				return err
 			}
 			collateralType := args[1] // TODO validation?
-			bz, err := cdc.MarshalJSON(types.QueryCdpsParams{
+			bz, err := cdc.MarshalJSON(types.QueryCdpParams{
 				CollateralDenom: collateralType,
+				Owner:           ownerAddress,
 			})
 			if err != nil {
 				return err
@@ -58,8 +59,6 @@ func QueryCdpCmd(queryRoute string, cdc *codec.Codec) *cobra.Command {
 			route := fmt.Sprintf("custom/%s/%s", queryRoute, types.QueryGetCdp)
 			res, _, err := cliCtx.QueryWithData(route, bz)
 			if err != nil {
-				fmt.Printf("error when getting cdp info - %s", err)
-				fmt.Printf("could not get current cdp info - %s %s \n", string(ownerAddress), string(collateralType))
 				return err
 			}
 
@@ -78,7 +77,7 @@ func QueryCdpsByDenomCmd(queryRoute string, cdc *codec.Codec) *cobra.Command {
 		Short: "Query cdps by collateral type",
 		Long: strings.TrimSpace(`Query cdps by a specific collateral type, or query all cdps if none is specifed:
 
-$ <appcli> query cdp cdps atom
+$ <appcli> query cdp cdps uatom
 		`),
 		Args: cobra.MaximumNArgs(1),
 		RunE: func(cmd *cobra.Command, args []string) error {

x/cdp/genesis.go

@@ -51,6 +51,7 @@ func InitGenesis(ctx sdk.Context, k Keeper, pk PricefeedKeeper, gs GenesisState)
 
 	k.SetNextCdpID(ctx, gs.StartingCdpID)
 	k.SetDebtDenom(ctx, gs.DebtDenom)
+	k.SetGovDenom(ctx, gs.GovDenom)
 
 	for _, d := range gs.Deposits {
 		k.SetDeposit(ctx, d)

x/cdp/integration_test.go

@@ -39,16 +39,20 @@ func NewPricefeedGenState(asset string, price sdk.Dec) app.GenesisState {
 func NewCDPGenState(asset string, liquidationRatio sdk.Dec) app.GenesisState {
 	cdpGenesis := cdp.GenesisState{
 		Params: cdp.Params{
-			GlobalDebtLimit: sdk.NewCoins(sdk.NewInt64Coin("usdx", 1000000000000)),
+			GlobalDebtLimit:         sdk.NewCoins(sdk.NewInt64Coin("usdx", 1000000000000)),
+			SurplusAuctionThreshold: cdp.DefaultSurplusThreshold,
+			DebtAuctionThreshold:    cdp.DefaultDebtThreshold,
 			CollateralParams: cdp.CollateralParams{
 				{
-					Denom:            asset,
-					LiquidationRatio: liquidationRatio,
-					DebtLimit:        sdk.NewCoins(sdk.NewInt64Coin("usdx", 1000000000000)),
-					StabilityFee:     sdk.MustNewDecFromStr("1.000000001547125958"), // %5 apr
-					Prefix:           0x20,
-					ConversionFactor: i(6),
-					MarketID:         asset + ":usd",
+					Denom:              asset,
+					LiquidationRatio:   liquidationRatio,
+					DebtLimit:          sdk.NewCoins(sdk.NewInt64Coin("usdx", 1000000000000)),
+					StabilityFee:       sdk.MustNewDecFromStr("1.000000001547125958"), // %5 apr
+					LiquidationPenalty: d("0.05"),
+					AuctionSize:        i(1000000000),
+					Prefix:             0x20,
+					ConversionFactor:   i(6),
+					MarketID:           asset + ":usd",
 				},
 			},
 			DebtParams: cdp.DebtParams{
@@ -63,6 +67,7 @@ func NewCDPGenState(asset string, liquidationRatio sdk.Dec) app.GenesisState {
 		},
 		StartingCdpID:     cdp.DefaultCdpStartingID,
 		DebtDenom:         cdp.DefaultDebtDenom,
+		GovDenom:          cdp.DefaultGovDenom,
 		CDPs:              cdp.CDPs{},
 		PreviousBlockTime: cdp.DefaultPreviousBlockTime,
 	}
@@ -97,25 +102,31 @@ func NewPricefeedGenStateMulti() app.GenesisState {
 func NewCDPGenStateMulti() app.GenesisState {
 	cdpGenesis := cdp.GenesisState{
 		Params: cdp.Params{
-			GlobalDebtLimit: sdk.NewCoins(sdk.NewInt64Coin("usdx", 1000000000000), sdk.NewInt64Coin("susd", 1000000000000)),
+			GlobalDebtLimit:         sdk.NewCoins(sdk.NewInt64Coin("usdx", 1000000000000), sdk.NewInt64Coin("susd", 1000000000000)),
+			SurplusAuctionThreshold: cdp.DefaultSurplusThreshold,
+			DebtAuctionThreshold:    cdp.DefaultDebtThreshold,
 			CollateralParams: cdp.CollateralParams{
 				{
-					Denom:            "xrp",
-					LiquidationRatio: sdk.MustNewDecFromStr("2.0"),
-					DebtLimit:        sdk.NewCoins(sdk.NewInt64Coin("usdx", 500000000000), sdk.NewInt64Coin("susd", 500000000000)),
-					StabilityFee:     sdk.MustNewDecFromStr("1.000000001547125958"), // %5 apr
-					Prefix:           0x20,
-					MarketID:         "xrp:usd",
-					ConversionFactor: i(6),
+					Denom:              "xrp",
+					LiquidationRatio:   sdk.MustNewDecFromStr("2.0"),
+					DebtLimit:          sdk.NewCoins(sdk.NewInt64Coin("usdx", 500000000000), sdk.NewInt64Coin("susd", 500000000000)),
+					StabilityFee:       sdk.MustNewDecFromStr("1.000000001547125958"), // %5 apr
+					LiquidationPenalty: d("0.05"),
+					AuctionSize:        i(7000000000),
+					Prefix:             0x20,
+					MarketID:           "xrp:usd",
+					ConversionFactor:   i(6),
 				},
 				{
-					Denom:            "btc",
-					LiquidationRatio: sdk.MustNewDecFromStr("1.5"),
-					DebtLimit:        sdk.NewCoins(sdk.NewInt64Coin("usdx", 500000000000), sdk.NewInt64Coin("susd", 500000000000)),
-					StabilityFee:     sdk.MustNewDecFromStr("1.000000000782997609"), // %2.5 apr
-					Prefix:           0x21,
-					MarketID:         "btc:usd",
-					ConversionFactor: i(8),
+					Denom:              "btc",
+					LiquidationRatio:   sdk.MustNewDecFromStr("1.5"),
+					DebtLimit:          sdk.NewCoins(sdk.NewInt64Coin("usdx", 500000000000), sdk.NewInt64Coin("susd", 500000000000)),
+					StabilityFee:       sdk.MustNewDecFromStr("1.000000000782997609"), // %2.5 apr
+					LiquidationPenalty: d("0.025"),
+					AuctionSize:        i(10000000),
+					Prefix:             0x21,
+					MarketID:           "btc:usd",
+					ConversionFactor:   i(8),
 				},
 			},
 			DebtParams: cdp.DebtParams{
@@ -137,6 +148,7 @@ func NewCDPGenStateMulti() app.GenesisState {
 		},
 		StartingCdpID:     cdp.DefaultCdpStartingID,
 		DebtDenom:         cdp.DefaultDebtDenom,
+		GovDenom:          cdp.DefaultGovDenom,
 		CDPs:              cdp.CDPs{},
 		PreviousBlockTime: cdp.DefaultPreviousBlockTime,
 	}
@@ -193,6 +205,15 @@ func badGenStates() []badGenState {
 	g10 := baseGenState()
 	g10.PreviousBlockTime = time.Time{}
 
+	g11 := baseGenState()
+	g11.Params.CollateralParams[0].AuctionSize = i(-10)
+
+	g12 := baseGenState()
+	g12.Params.CollateralParams[0].LiquidationPenalty = d("5.0")
+
+	g13 := baseGenState()
+	g13.GovDenom = ""
+
 	return []badGenState{
 		badGenState{Genesis: g1, Reason: "duplicate collateral denom"},
 		badGenState{Genesis: g2, Reason: "duplicate collateral prefix"},
@@ -204,13 +225,18 @@ func badGenStates() []badGenState {
 		badGenState{Genesis: g8, Reason: "debt param not found in global debt limit"},
 		badGenState{Genesis: g9, Reason: "debt denom not set"},
 		badGenState{Genesis: g10, Reason: "previous block time not set"},
+		badGenState{Genesis: g11, Reason: "negative auction size"},
+		badGenState{Genesis: g12, Reason: "invalid liquidation penalty"},
+		badGenState{Genesis: g13, Reason: "gov denom not set"},
 	}
 }
 
 func baseGenState() cdp.GenesisState {
 	return cdp.GenesisState{
 		Params: cdp.Params{
-			GlobalDebtLimit: sdk.NewCoins(sdk.NewInt64Coin("usdx", 1000000000000), sdk.NewInt64Coin("susd", 1000000000000)),
+			GlobalDebtLimit:         sdk.NewCoins(sdk.NewInt64Coin("usdx", 1000000000000), sdk.NewInt64Coin("susd", 1000000000000)),
+			SurplusAuctionThreshold: cdp.DefaultSurplusThreshold,
+			DebtAuctionThreshold:    cdp.DefaultDebtThreshold,
 			CollateralParams: cdp.CollateralParams{
 				{
 					Denom:            "xrp",
@@ -250,6 +276,7 @@ func baseGenState() cdp.GenesisState {
 		},
 		StartingCdpID:     cdp.DefaultCdpStartingID,
 		DebtDenom:         cdp.DefaultDebtDenom,
+		GovDenom:          cdp.DefaultGovDenom,
 		CDPs:              cdp.CDPs{},
 		PreviousBlockTime: cdp.DefaultPreviousBlockTime,
 	}