Integrate DEX into manual liquidation by jordanschalm · Pull Request #112 · onflow/FlowALP

jordanschalm · 2026-01-16T17:47:26Z

Closes: #94

Extends #77 (review that PR first)

Description

This PR implements integration with a generic DEX (SwapperProvider), as a source of pricing comparison, for the purposes of manual liquidation. The DEX price is used in two ways:

liquidation offers much be strictly better than what could be obtained by swapping through the DEX
if the DEX price diverges from the oracle price too much, no liquidation is allowed

Policy Decisions

A SwapperProvider (DEX) must always be provided at construction time of the Pool (field is non-optional)
The configured SwapperProvider must provide a Swapper for all possible supported token pairs. If it does not, liquidation will fail.

(no errors in IDE, but tests failing (can't find FCM in this scope) on this commit)

state is stored in smart contract, struct with reference to contract acts as mock object from FCM's perspective

Un-comment the DEX price validation logic to ensure liquidators provide competitive prices and prevent oracle manipulation. Add test infrastructure with MockDexSwapper transaction and helpers to configure DEX prices that stay synchronized with oracle prices during liquidation tests. Co-Authored-By: Claude Sonnet 4.5 <noreply@anthropic.com>

Implement 5 test functions covering DEX pricing validation logic: - testManualLiquidation_dexOraclePriceDivergence: Tests price divergence thresholds with 3 sub-cases (within/exceeds/above oracle) - testManualLiquidation_increaseHealthBelowTarget: Tests partial liquidation improving health without reaching target - testManualLiquidation_liquidateToTarget: Tests liquidation bringing health to exactly 1.05 target - testManualLiquidation_liquidatorOfferWorseThanDex: Tests rejection when liquidator offers worse price than DEX - testManualLiquidation_combinedEdgeCase: Tests divergence check precedence over competitive offers All 18 tests in liquidation_phase1_test.cdc now pass. Co-Authored-By: Claude Sonnet 4.5 <noreply@anthropic.com>

Refactor testManualLiquidation_dexOraclePriceDivergence into: - testManualLiquidation_dexOraclePriceDivergence_withinThreshold: Tests successful liquidation when divergence is within 3% threshold - testManualLiquidation_dexOraclePriceDivergence_exceedsThreshold: Tests two failure cases when divergence exceeds threshold (DEX below and above oracle) This improves test clarity by separating success and failure scenarios into distinct test functions. All 19 tests pass. Co-Authored-By: Claude Sonnet 4.5 <noreply@anthropic.com>

Refactor testManualLiquidation_dexOraclePriceDivergence_exceedsThreshold into: - testManualLiquidation_dexOraclePriceDivergence_dexBelowOracle: Tests failure when DEX price is below oracle (6.06% divergence) - testManualLiquidation_dexOraclePriceDivergence_dexAboveOracle: Tests failure when DEX price is above oracle (5.71% divergence) This provides better test isolation with one assertion per test function. All 20 tests pass. Co-Authored-By: Claude Sonnet 4.5 <noreply@anthropic.com>

joshuahannan

I'm a little confused about the upgrade plans here

joshuahannan · 2026-01-27T17:28:13Z

+        ///
+        /// FCM does not attempt to construct multi-part paths (using multiple Swappers) or compare prices across Swappers.
+        /// It relies directly on the Swapper's returned by the configured SwapperProvider.
+        access(self) let dex: {DeFiActions.SwapperProvider}


We can't add this in an upgrade, right? Or are we redeploying?

You're right -- we will need to redeploy to add this field.

I've been operating under the assumption that we may not redeploy, but obviously this change will make redeployment necessary (we also separately decided this morning to proceed under the assumption that we will do a redeployment). I think we can leave this field as is, and I will be going through the fields marked deprecated in previous PRs to remove them prior to redeployment (since we can safely do that now).

yep, we'll be redeploying
there are already non-upgradable changes in this contract

Renamed functions and updated documentation to make it clear that setting a mock DEX swapper overwrites any existing swapper for the same token pair. This is primarily used in tests to set or update prices. Changes: - Renamed MockDexSwapper._addSwapper() to setMockDEXSwapperForPair() - Renamed test helper addMockDexSwapper() to setMockDexPriceForPair() - Renamed transaction file to set_mock_dex_price_for_pair.cdc - Updated all test usages in liquidation_phase1_test.cdc - Added documentation explaining overwrite behavior and intended use case Co-Authored-By: Claude Sonnet 4.5 <noreply@anthropic.com>

Resolved merge conflicts in liquidation_phase1_test.cdc by accepting DEX integration changes and updating identifier variables to use global CAPS constants (FLOW_TOKEN_IDENTIFIER, MOET_TOKEN_IDENTIFIER, PROTOCOL_ACCOUNT). Co-Authored-By: Claude Sonnet 4.5 <noreply@anthropic.com>

turbolent

Nice!

turbolent · 2026-01-28T23:09:04Z

+            let swappersForInType = self.swappers[inType]!
+            swappersForInType[outType] = swapper
+            self.swappers[inType] = swappersForInType


This is just a mock contract so it doesn't matter, but in production code we should consider optimizing such code, i.e. avoiding copying and updating existing (potentially large) datasets by using in-place mutation (get a reference and insert)

Modified to use references in 514d126.

Co-authored-by: Bastian Müller <bastian@turbolent.com>

nialexsan · 2026-02-04T15:17:44Z

+    /// @param swapper: The swapper to set for the token pair
+    access(all) fun setMockDEXSwapperForPair(swapper: Swapper) {


do we also want to implement deleting a swapper in case we want to remove unwanted swappers?

Done in 9de9899

nialexsan · 2026-02-04T15:18:39Z

+        /// TODO: unused! To remove, must re-deploy existing contracts
        access(self) var allowedSwapperTypes: {Type: Bool}


it's safe to remove it, we'll be renaming the contract and deploying it with a new name

nialexsan · 2026-02-04T15:20:28Z

+        /// TODO: unused! To remove, must re-deploy existing contracts
        access(self) var allowedSwapperTypes: {Type: Bool}

+        /// A trusted DEX (or set of DEXes) used by FCM as a pricing oracle and trading counterparty for liquidations.


nit: use full contract name (FlowCreditMarket) instead of FCM
it'll be easier to find and replace it later

nialexsan · 2026-02-04T15:22:03Z

+        /// TODO: unused! To remove, must re-deploy existing contracts
        access(self) var dexMaxSlippageBps: UInt64

        /// Max route hops allowed for DEX liquidations
-        // TODO(jord): unused
+        /// TODO: unused! To remove, must re-deploy existing contracts
        access(self) var dexMaxRouteHops: UInt64


it's ok to remove it now

There are a few other unused fields to remove too and non-trivial downstream changes from removing them -- going to handle that separately in #137

…ntegrate-dex

This reverts commit f8f69ba.

jordanschalm and others added 13 commits January 16, 2026 09:46

update FlowActions

62ca2d6

add dex field, and do deps update

d35d9c1

(no errors in IDE, but tests failing (can't find FCM in this scope) on this commit)

add mock swapper provider

de43487

rework mock dex to use same pattern as oracle

821ea4e

state is stored in smart contract, struct with reference to contract acts as mock object from FCM's perspective

include dex in pool creation in tests

f27cc28

move related tests together

3b934d5

extend documentation for Pool.dex

dd5b8af

Merge branch 'jord/liquidation' into jord/94-liquidation-integrate-dex

603a513

Merge branch 'jord/liquidation' into jord/94-liquidation-integrate-dex

6d7d885

jordanschalm marked this pull request as ready for review January 21, 2026 20:44

jordanschalm requested a review from a team as a code owner January 21, 2026 20:44

This was referenced Jan 21, 2026

Enforce liquidation pause and warmup period checks #118

Closed

Implement manual liquidation path #77

Merged

jordanschalm added 2 commits January 23, 2026 13:48

Merge branch 'jord/liquidation' into jord/94-liquidation-integrate-dex

c39c560

Merge branch 'jord/liquidation' into jord/94-liquidation-integrate-dex

d5be0da

tim-barry reviewed Jan 27, 2026

View reviewed changes

Comment thread cadence/contracts/mocks/MockDexSwapper.cdc Outdated

Comment thread cadence/tests/test_helpers.cdc

turbolent reviewed Jan 27, 2026

View reviewed changes

Comment thread cadence/contracts/FlowCreditMarket.cdc

Comment thread cadence/contracts/mocks/MockDexSwapper.cdc Outdated

joshuahannan reviewed Jan 27, 2026

View reviewed changes

Base automatically changed from jord/liquidation to main January 27, 2026 20:25

jordanschalm and others added 5 commits January 27, 2026 12:29

Merge branch 'main' into jord/94-liquidation-integrate-dex

f967d3d

cache inType/outType call in setMockDEXSwapperForPair

3b6d1fe

improve error message for missing dex swapper

268f420

turbolent reviewed Jan 28, 2026

View reviewed changes

Apply suggestions from code review

56fdf4e

Co-authored-by: Bastian Müller <bastian@turbolent.com>

jordanschalm and others added 3 commits January 30, 2026 07:46

use reference mutation in mock dex

514d126

Merge branch 'main' into jord/94-liquidation-integrate-dex

8da9d24

fix mutation of nested dict in mock dex swapper

ae959b0

vishalchangrani requested review from a team and Kay-Zee February 3, 2026 17:20

joshuahannan approved these changes Feb 3, 2026

View reviewed changes

nialexsan reviewed Feb 4, 2026

View reviewed changes

jordanschalm and others added 6 commits February 4, 2026 12:20

Merge remote-tracking branch 'origin/main' into jord/94-liquidation-i…

d9b6529

…ntegrate-dex

add remove fn for mock dex

9de9899

remove unused fields

f8f69ba

Revert "remove unused fields"

5ff9f13

This reverts commit f8f69ba.

Merge branch 'main' into jord/94-liquidation-integrate-dex

d110919

use openPosition function, resolve merge

e82b6d3

jordanschalm merged commit 76493cf into main Feb 5, 2026
1 check passed

jordanschalm deleted the jord/94-liquidation-integrate-dex branch February 5, 2026 22:22

jordanschalm mentioned this pull request Feb 17, 2026

Implement basic DEX interface SwapperProvider for UniswapV3 #94

Open

		/// @param swapper: The swapper to set for the token pair
		access(all) fun setMockDEXSwapperForPair(swapper: Swapper) {

		/// TODO: unused! To remove, must re-deploy existing contracts
		access(self) var allowedSwapperTypes: {Type: Bool}

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jordanschalm commented Jan 16, 2026 • edited Loading Uh oh! There was an error while loading. Please reload this page.

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Description

Policy Decisions

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jordanschalm commented Jan 16, 2026 •

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