Fix Spearbit issue where governance fees are included in Share reserv…

…es (#520) * . * added test for Spearbit fix * initial pass at review comments * update comment * fixed tests according to @jhrea 's reccomendation * add comment * Update test/units/hyperdrive/OpenShortTest.t.sol Co-authored-by: Alex Towle <[email protected]> * Update test/units/hyperdrive/OpenShortTest.t.sol Co-authored-by: Alex Towle <[email protected]> * Update test/units/hyperdrive/OpenShortTest.t.sol Co-authored-by: Alex Towle <[email protected]> * nits --------- Co-authored-by: Alex Towle <[email protected]>
delvtech · Jul 24, 2023 · 4730953 · 4730953
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Showing 4 changed files with 94 additions and 8 deletions.
diff --git a/contracts/src/HyperdriveDataProvider.sol b/contracts/src/HyperdriveDataProvider.sol
@@ -101,6 +101,20 @@ abstract contract HyperdriveDataProvider is
         _revert(abi.encode(poolInfo));
     }
 
+    /// @notice Gets info about the fees presently accrued by the pool
+    /// @return Governance fees denominated in shares yet to be collected
+    function getUncollectedGovernanceFees() external view returns (uint256) {
+        _revert(abi.encode(_governanceFeesAccrued));
+    }
+
+    function getMarketState()
+        external
+        view
+        returns (IHyperdrive.MarketState memory)
+    {
+        _revert(abi.encode(_marketState));
+    }
+
     /// @notice Allows plugin data libs to provide getters or other complex
     ///         logic instead of the main.
     /// @param _slots The storage slots the caller wants the data from

diff --git a/contracts/src/HyperdriveShort.sol b/contracts/src/HyperdriveShort.sol
@@ -449,13 +449,13 @@ abstract contract HyperdriveShort is HyperdriveLP {
             _sharePrice
         );
 
-        // Remove the curve fee from the amount of shares to remove from the shareReserves.
-        // We do this bc the shareReservesDelta represents how many shares to remove
-        // from the shareReserves.  Making the shareReservesDelta smaller pays out the
-        // totalCurveFee to the LPs.
-        // The shareReservesDelta and the totalCurveFee are both in terms of shares
-        // shares -= shares
-        shareReservesDelta -= totalCurveFee;
+        // ShareReservesDelta is the number of shares to remove from the shareReserves and
+        // since the totalCurveFee includes the totalGovernanceFee it needs to be added back
+        // to so that it is removed from the shareReserves. The shareReservesDelta,
+        // totalCurveFee and totalGovernanceFee are all in terms of shares:
+
+        // shares -= shares - shares
+        shareReservesDelta -= totalCurveFee - totalGovernanceFee;
         return (shareReservesDelta, totalGovernanceFee);
     }
 

diff --git a/contracts/src/interfaces/IHyperdriveRead.sol b/contracts/src/interfaces/IHyperdriveRead.sol
@@ -21,6 +21,13 @@ interface IHyperdriveRead is IMultiTokenRead {
         view
         returns (IHyperdrive.PoolConfig memory);
 
+    function getMarketState()
+        external
+        view
+        returns (IHyperdrive.MarketState memory);
+
+    function getUncollectedGovernanceFees() external view returns (uint256);
+
     function getPoolInfo() external view returns (IHyperdrive.PoolInfo memory);
 
     function load(

diff --git a/test/units/hyperdrive/OpenShortTest.t.sol b/test/units/hyperdrive/OpenShortTest.t.sol
@@ -6,7 +6,7 @@ import { IHyperdrive } from "contracts/src/interfaces/IHyperdrive.sol";
 import { AssetId } from "contracts/src/libraries/AssetId.sol";
 import { FixedPointMath } from "contracts/src/libraries/FixedPointMath.sol";
 import { HyperdriveMath } from "contracts/src/libraries/HyperdriveMath.sol";
-import { HyperdriveTest, HyperdriveUtils } from "../../utils/HyperdriveTest.sol";
+import { HyperdriveTest, HyperdriveUtils, IERC20, MockHyperdrive, MockHyperdriveDataProvider } from "../../utils/HyperdriveTest.sol";
 import { Lib } from "../../utils/Lib.sol";
 
 contract OpenShortTest is HyperdriveTest {
@@ -179,6 +179,71 @@ contract OpenShortTest is HyperdriveTest {
         //I think we could trigger this with big short, open long, and short?
     }
 
+    function test_governance_fees_excluded_share_reserves() public {
+        uint256 apr = 0.05e18;
+        uint256 contribution = 500_000_000e18;
+
+        // 1. Deploy a pool with zero fees
+        IHyperdrive.PoolConfig memory config = testConfig(apr);
+        deploy(address(deployer), config);
+        // Initialize the pool with a large amount of capital.
+        initialize(alice, apr, contribution);
+
+        // 2. Open a short
+        uint256 bondAmount = (hyperdrive.calculateMaxShort() * 90) / 100;
+        openShort(bob, bondAmount);
+
+        // 3. Record Share Reserves
+        IHyperdrive.MarketState memory zeroFeeState = hyperdrive
+            .getMarketState();
+
+        // 4. deploy a pool with 100% curve fees and 100% gov fees (this is nice bc
+        // it ensures that all the fees are credited to governance and thus subtracted
+        // from the shareReserves
+        config = testConfig(apr);
+        config.fees = IHyperdrive.Fees({
+            curve: 1e18,
+            flat: 1e18,
+            governance: 1e18
+        });
+        deploy(address(deployer), config);
+        initialize(alice, apr, contribution);
+
+        // 5. Open a Short
+        bondAmount = (hyperdrive.calculateMaxShort() * 90) / 100;
+        openShort(bob, bondAmount);
+
+        // 6. Record Share Reserves
+        IHyperdrive.MarketState memory maxFeeState = hyperdrive
+            .getMarketState();
+
+        // Since the fees are subtracted from reserves and accounted for
+        // seperately, so this will be true
+        assertEq(zeroFeeState.shareReserves, maxFeeState.shareReserves);
+
+        uint256 govFees = hyperdrive.getUncollectedGovernanceFees();
+        // Governance fees collected are non-zero
+        assert(govFees > 1e5);
+
+        // 7. deploy a pool with 100% curve fees and 0% gov fees
+        config = testConfig(apr);
+        config.fees = IHyperdrive.Fees({ curve: 1e18, flat: 0, governance: 0 });
+        // Deploy and initialize the new pool
+        deploy(address(deployer), config);
+        initialize(alice, apr, contribution);
+
+        // 8. Open a Short
+        bondAmount = (hyperdrive.calculateMaxShort() * 90) / 100;
+        openShort(bob, bondAmount);
+
+        // 9. Record Share Reserves
+        IHyperdrive.MarketState memory maxCurveFeeState = hyperdrive
+            .getMarketState();
+
+        // shareReserves should be greater here because there is no Gov being deducted
+        assertGe(maxCurveFeeState.shareReserves, maxFeeState.shareReserves);
+    }
+
     function verifyOpenShort(
         IHyperdrive.PoolInfo memory poolInfoBefore,
         uint256 contribution,