feat(vaults)!: refactor Vaults to use an Auction for Liquidation #7047

Chris-Hibbert · 2023-02-22T18:20:42Z

closes: #6692
refs: #6641
fixes: #6951

Description

Refactor Vaults to use an Auction for liquidation in place of the previous reliance on the AMM.

The AMM and Reserve are tangled in bootstrap, and this PR doesn't succeed in untangling them completely. Some tests fail at this time, but will be repaired before it is merged.

There are two commits here. Please focus on the first, which is the meat of the refactoring. The second is the beginning of an attempt to clean up the entanglement with the AMM. We may end up removing the AMM entirely as the simplest way to clean up the loose ends.

Security Considerations

The concerns here are mostly economic, and not much related to software security.

Scaling Considerations

There may be many users of the Auction, though presumably significantly fewer than of the Vaults.

Documentation Considerations

Documentation of the AMM for end users and high-investment users will be required.

Testing Considerations

Tests show that the normal paths through vault liquidation work correctly. There many not be enough testing of edge cases.

packages/inter-protocol/src/proposals/startPSM.js

packages/inter-protocol/src/vaultFactory/prioritizedVaults.js

turadg · 2023-02-22T19:06:45Z

packages/inter-protocol/src/vaultFactory/storeUtils.js

+ * @returns {string} lexically sortable string in which highest
+ * debt-to-collateral is earliest
+ */
+const toCollateralizationRatioKey = (normalizedDebt, collateral) => {


this is the same as toVaultKey but without the vaultId differentiator. I don't see it used anywhere except tests. What's the purpose?

The vault keys have two parts, the collateralizationRatio and a key to uniquify vaults. When retrieving values from a store using M.lte() or M.gte(), the entire key is compared.

If I want everything above some collateralization ratio, I don't want to include a specific key or any vault with that exact CR, but a smaller key would be missed. So the right query is one that doesn't specifies the vaultId. normalizedCRKey() does that, but it takes a normalized CR.

Creating a normalized ratio would have taken more work than I wanted, so I used this function to create keys with just the CR part. I've now removed this function and had the tests use a key that is just 'id.'.

packages/inter-protocol/src/vaultFactory/storeUtils.js

packages/inter-protocol/src/vaultFactory/vaultDirector.js

packages/inter-protocol/src/vaultFactory/vaultManager.js

packages/inter-protocol/test/vaultFactory/test-vaultFactory.js

The most visible consequence is to vault liquidation. Some pieces are left hanging, and will be repaired by #7047.

It will be introduced with #7047 when vaultfactory makes use of the auction for liquidation

…7074) * feat(AMM)!: remove the AMM and cleanup bootstrap etc. dependencies The most visible consequence is to vault liquidation. Some pieces are left hanging, and will be repaired by #7047. * chore: first follow-ups to initial comments Remove a few more things, mostly doc comments. * chore: clean-ups and todos to mark unfinished transition steps * chore: use unknown rather than any in interim liquidation contracts * chore: remove more stuff related to AMM remove interchainPool and other bootstrap stuff connected to AMM Simplify liquidation contracts so they don't refer to dead code. other clean ups * chore: lint cleanups and revert retainedCollateral * test: update integration test to use faucet instead of amm & vault

It will be introduced with #7047 when vaultfactory makes use of the auction for liquidation

dckc · 2023-03-16T16:51:16Z

E(auctioneerCreator).addBrand() missing

While working on the CLI (#7132) in a running chain, I got result: "Your offer was refused" from all my bid offers. Looks like this is missing:

@@ -204,7 +204,7 @@ export const registerScaledPriceAuthority = async (
  */
 export const addAssetToVault = async (
   {
-    consume: { vaultFactoryKit, agoricNamesAdmin },
+    consume: { vaultFactoryKit, agoricNamesAdmin, auctioneerKit },
     brand: {
       consume: { [Stable.symbol]: stableP },
     },
@@ -239,6 +239,8 @@ export const addAssetToVault = async (
     liquidationPenalty: makeRatio(1n, stable),
     interestRate: makeRatio(1n, stable),
   });
+  const auctioneerCreator = E.get(auctioneerKit).creatorFacet;
+  await E(auctioneerCreator).addBrand(interchainIssuer, keyword);
 };
@@ -288,7 +290,8 @@ export const getManifestForAddAssetToVault = (
       },
       [addAssetToVault.name]: {
         consume: {
-          vaultFactoryKit: true,
+          auctioneerKit: 'auctioneer',
+          vaultFactoryKit: 'vaultFactory',
           agoricNamesAdmin: true,
         },
         brand: {

dckc · 2023-03-16T16:53:00Z

`scaledBidBook` not durable?

2023-03-16T16:39:35.036Z SwingSet: ls: v39: Error#1: value is not durable: Object [Alleged: scaledBidBook ] { add: [Function: add], offersAbove: [Function: offersAbove], hasOrders: [Function: hasOrders], delete: [Function: delete], updateReceived: [Function: updateReceived], exitAllSeats: [Function: exitAllSeats] } at slot 0 of #"$0.Alleged: scaledBidBook "
2023-03-16T16:39:35.036Z SwingSet: ls: v39: Error: value is not durable: (an object) at slot 0 of (a string)
 at construct ()
 at Error (/bundled-source/.../node_modules/ses/src/error/tame-error-constructor.js:56)
 at makeError (/bundled-source/.../node_modules/ses/src/error/assert.js:242)
 at fail (/bundled-source/.../node_modules/ses/src/error/assert.js:370)
 at throwNotDurable (/bundled-source/.../packages/swingset-liveslots/src/collectionManager.js:47)
 at (/bundled-source/.../packages/swingset-liveslots/src/collectionManager.js:327)
 at forEach ()
 at init (/bundled-source/.../packages/swingset-liveslots/src/collectionManager.js:325)
 at provideLazy (.../store/src/stores/store-utils.js:98)
 at makeAuctionBook (.../inter-protocol/src/auction/auctionBook.js:130)
 at ()
 at ()

dckc · 2023-03-16T17:50:14Z

packages/inter-protocol/src/auction/auctionBook.js

@@ -175,7 +193,12 @@ export const makeAuctionBook = async (
    }
  };

-  // Settle with seat. The caller is responsible for updating the book, if any.
+  /**
+   *e Settle with seat. The caller is responsible for updating the book, if any.


dckc · 2023-03-16T17:52:31Z

packages/inter-protocol/src/auction/auctioneer.js

@@ -262,7 +276,12 @@ export const start = async (zcf, privateArgs, baggage) => {

  const publicFacet = augmentPublicFacet(
    harden({
+      /** @param {Brand<'nat'>} collateralBrand */
      getBidInvitation(collateralBrand) {


should be makeBidInvitation, right? it returns a fresh Invitation each time.

Also: mustMatch(collateralBrand, BrandShape) seems in order.

dckc · 2023-03-16T17:55:33Z

packages/inter-protocol/src/auction/auctioneer.js

      getBidInvitation(collateralBrand) {
+        /**
+         * @param {ZCFSeat} zcfSeat
+         * @param {import('./auctionBook.js').BidSpec} bidSpec


bidSpec comes from outside the contract (i.e. from a presumed attacker), and bidProposalShape doesn't guarantee that bidSpec is of type BidSpec. It only checks {}, whatever that means.

dckc

good stuff.

I'm still a little nervous about module level state for getting the next seqNum. Here's hoping for time to think about that a bit more.

dckc · 2023-03-16T20:19:18Z

packages/inter-protocol/test/auction/test-auctionContract.js

@@ -912,3 +915,16 @@ test('deposit unregistered collateral', async t => {
    message: /no ordinal/,
  });
 });
+
+test('bid on unregistered collateral', async t => {


All tests pass with minor modifications. split test-vaultFactory. liquidation-related tests go to test-vaultLiquidation.js, others remain. chore: lint cleanups and other minor issues refactor: revise liquidation payout approach to match #7123 chore: changes requested in review chore: permit auctioneerKit for startVaultFactory chore: more changes suggested in review fixup: remove getDepositInvitation from creatorFacet

chore(types): fixup auction types

Chris-Hibbert added Inter-protocol Overarching Inter Protocol AMM Vaults VaultFactor (née Treasury) MUST-HAVE labels Feb 22, 2023

Chris-Hibbert self-assigned this Feb 22, 2023

Chris-Hibbert marked this pull request as draft February 22, 2023 18:20

Chris-Hibbert requested review from turadg and erights February 22, 2023 18:21

turadg reviewed Feb 22, 2023

View reviewed changes

ivanlei requested a review from dtribble February 22, 2023 20:49

Chris-Hibbert force-pushed the 6641-auctioneer branch from af8187d to 526fd19 Compare February 23, 2023 00:48

This was referenced Feb 23, 2023

feat(auction): add an auctioneer to manage vault liquidation #7000

Merged

remove the AMM #7055

Closed

Chris-Hibbert added a commit that referenced this pull request Feb 24, 2023

feat(AMM)!: remove the AMM and cleanup bootstrap etc. dependencies

afd8d53

The most visible consequence is to vault liquidation. Some pieces are left hanging, and will be repaired by #7047.

Chris-Hibbert mentioned this pull request Feb 24, 2023

feat(AMM)!: remove the AMM and cleanup bootstrap etc. dependencies #7074

Merged

Chris-Hibbert added a commit that referenced this pull request Feb 24, 2023

feat(AMM)!: remove the AMM and cleanup bootstrap etc. dependencies

0b697b7

The most visible consequence is to vault liquidation. Some pieces are left hanging, and will be repaired by #7047.

Chris-Hibbert mentioned this pull request Feb 27, 2023

enable Reserve (under governance) to sell asset via Auction #7087

Open

Chris-Hibbert force-pushed the 6641-auctioneer branch 3 times, most recently from 6e6baea to d45a03d Compare February 28, 2023 20:29

Chris-Hibbert force-pushed the 6992-auctioneer branch from 4eef984 to 2b4e795 Compare February 28, 2023 20:50

Chris-Hibbert added a commit that referenced this pull request Feb 28, 2023

feat(AMM)!: remove the AMM and cleanup bootstrap etc. dependencies

eaeb4c2

The most visible consequence is to vault liquidation. Some pieces are left hanging, and will be repaired by #7047.

Chris-Hibbert added a commit that referenced this pull request Feb 28, 2023

chore: auction was introduced to vaultfactory too early.

ee20e1a

It will be introduced with #7047 when vaultfactory makes use of the auction for liquidation

Chris-Hibbert mentioned this pull request Mar 1, 2023

vaultFactory proposal shapes #7094

Merged

Chris-Hibbert added a commit that referenced this pull request Mar 2, 2023

chore: auction was introduced to vaultfactory too early.

8e6f213

It will be introduced with #7047 when vaultfactory makes use of the auction for liquidation

Chris-Hibbert force-pushed the 6992-auctioneer branch from f195783 to 90ce4f5 Compare March 2, 2023 22:59

Chris-Hibbert added a commit that referenced this pull request Mar 5, 2023

chore: auction was introduced to vaultfactory too early.

fcb3056

It will be introduced with #7047 when vaultfactory makes use of the auction for liquidation

Chris-Hibbert force-pushed the 6992-auctioneer branch from c29f2c2 to bfaa587 Compare March 5, 2023 23:16

Base automatically changed from 6992-auctioneer to master March 6, 2023 01:24

Chris-Hibbert removed the automerge:rebase Automatically rebase updates, then merge label Mar 16, 2023

turadg force-pushed the 6641-auctioneer branch from 7b16bd4 to 4d5985a Compare March 16, 2023 15:12

turadg added automerge:no-update (expert!) Automatically merge without updates and removed automerge:no-update (expert!) Automatically merge without updates labels Mar 16, 2023

dckc reviewed Mar 16, 2023

View reviewed changes

dckc approved these changes Mar 16, 2023

View reviewed changes

turadg mentioned this pull request Mar 16, 2023

restore or replace test-gov-collateral #7175

Closed

arirubinstein and others added 10 commits March 16, 2023 13:32

ci: install sdk deps with httpauth

c0c57e4

refactor(storeUtils): DRY normalizedCollRatioKey

e4ec668

feat: reject bids on brands with no books

176f129

feat(auctioneer): enable when adding collateral type

f6d8d96

feat(auctioneer): guard bidSpec

c9a2dcf

feat(auction): durable offer book

81d8a3e

chore(types): parameterize some TimeMath

086fa5e

chore(types): annotations and some runtime checks

9f2202f

chore(types): fixup auction types

chore(types): fixes

2983d50

turadg force-pushed the 6641-auctioneer branch from fe85bd9 to 2983d50 Compare March 16, 2023 21:51

chore(types): defer fix

b39fe18

turadg added the automerge:no-update (expert!) Automatically merge without updates label Mar 16, 2023

Merge branch 'master' into 6641-auctioneer

a2bc45a

mergify bot merged commit a2fa2fb into master Mar 17, 2023

mergify bot deleted the 6641-auctioneer branch March 17, 2023 00:51

turadg mentioned this pull request Mar 17, 2023

make auctioneer contract upgradable #7181

Closed

Chris-Hibbert mentioned this pull request Mar 21, 2023

Add delay before price update triggers Liquidation #5843

Closed

Chris-Hibbert mentioned this pull request Aug 4, 2023

test: drop obsolete tests #8149

Merged

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feat(vaults)!: refactor Vaults to use an Auction for Liquidation #7047

feat(vaults)!: refactor Vaults to use an Auction for Liquidation #7047

Chris-Hibbert commented Feb 22, 2023 •

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turadg Feb 22, 2023

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dckc commented Mar 16, 2023

dckc commented Mar 16, 2023 •

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dckc Mar 16, 2023

feat(vaults)!: refactor Vaults to use an Auction for Liquidation #7047

feat(vaults)!: refactor Vaults to use an Auction for Liquidation #7047

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Chris-Hibbert commented Feb 22, 2023 • edited Loading

Description

Security Considerations

Scaling Considerations

Documentation Considerations

Testing Considerations

turadg Feb 22, 2023

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dckc commented Mar 16, 2023

E(auctioneerCreator).addBrand() missing

dckc commented Mar 16, 2023 • edited Loading

scaledBidBook not durable?

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Chris-Hibbert commented Feb 22, 2023 •

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`scaledBidBook` not durable?