Merge pull request #822 from galacticcouncil/feat/add-omnipool-liquid…

…ty-limits

feat: add omnipool liquidity limits

pallets/omnipool/Cargo.toml

@@ -1,6 +1,6 @@
 [package]
 name = "pallet-omnipool"
-version = "4.2.2"
+version = "4.3.0"
 authors = ['GalacticCouncil']
 edition = "2021"
 license = "Apache-2.0"

pallets/omnipool/src/lib.rs

@@ -426,6 +426,8 @@ pub mod pallet {
 		ZeroAmountOut,
 		/// Existential deposit of asset is not available.
 		ExistentialDepositNotAvailable,
+		/// Slippage protection
+		SlippageLimit,
 	}
 
 	#[pallet::call]
@@ -580,6 +582,44 @@ pub mod pallet {
 		)]
 		#[transactional]
 		pub fn add_liquidity(origin: OriginFor<T>, asset: T::AssetId, amount: Balance) -> DispatchResult {
+			Self::add_liquidity_with_limit(origin, asset, amount, Balance::MIN)
+		}
+
+		/// Add liquidity of asset `asset` in quantity `amount` to Omnipool.
+		///
+		/// Limit protection is applied.
+		///
+		/// `add_liquidity` adds specified asset amount to Omnipool and in exchange gives the origin
+		/// corresponding shares amount in form of NFT at current price.
+		///
+		/// Asset's tradable state must contain ADD_LIQUIDITY flag, otherwise `NotAllowed` error is returned.
+		///
+		/// NFT is minted using NTFHandler which implements non-fungibles traits from frame_support.
+		///
+		/// Asset weight cap must be respected, otherwise `AssetWeightExceeded` error is returned.
+		/// Asset weight is ratio between new HubAsset reserve and total reserve of Hub asset in Omnipool.
+		///
+		/// Add liquidity fails if price difference between spot price and oracle price is higher than allowed by `PriceBarrier`.
+		///
+		/// Parameters:
+		/// - `asset`: The identifier of the new asset added to the pool. Must be already in the pool
+		/// - `amount`: Amount of asset added to omnipool
+		/// - `min_shares_limit`: The min amount of delta share asset the user should receive in the position
+		///
+		/// Emits `LiquidityAdded` event when successful.
+		///
+		#[pallet::call_index(13)]
+		#[pallet::weight(<T as Config>::WeightInfo::add_liquidity()
+		.saturating_add(T::OmnipoolHooks::on_liquidity_changed_weight()
+		.saturating_add(T::ExternalPriceOracle::get_price_weight()))
+		)]
+		#[transactional]
+		pub fn add_liquidity_with_limit(
+			origin: OriginFor<T>,
+			asset: T::AssetId,
+			amount: Balance,
+			min_shares_limit: Balance,
+		) -> DispatchResult {
 			let who = ensure_signed(origin.clone())?;
 
 			ensure!(
@@ -625,6 +665,11 @@ pub mod pallet {
 			)
 			.ok_or(ArithmeticError::Overflow)?;
 
+			ensure!(
+				*state_changes.asset.delta_shares >= min_shares_limit,
+				Error::<T>::SlippageLimit
+			);
+
 			let new_asset_state = asset_state
 				.delta_update(&state_changes.asset)
 				.ok_or(ArithmeticError::Overflow)?;
@@ -724,6 +769,40 @@ pub mod pallet {
 			origin: OriginFor<T>,
 			position_id: T::PositionItemId,
 			amount: Balance,
+		) -> DispatchResult {
+			Self::remove_liquidity_with_limit(origin, position_id, amount, Balance::MIN)
+		}
+
+		/// Remove liquidity of asset `asset` in quantity `amount` from Omnipool
+		///
+		/// Limit protection is applied.
+		///
+		/// `remove_liquidity` removes specified shares amount from given PositionId (NFT instance).
+		///
+		/// Asset's tradable state must contain REMOVE_LIQUIDITY flag, otherwise `NotAllowed` error is returned.
+		///
+		/// if all shares from given position are removed, position is destroyed and NFT is burned.
+		///
+		/// Remove liquidity fails if price difference between spot price and oracle price is higher than allowed by `PriceBarrier`.
+		///
+		/// Dynamic withdrawal fee is applied if withdrawal is not safe. It is calculated using spot price and external price oracle.
+		/// Withdrawal is considered safe when trading is disabled.
+		///
+		/// Parameters:
+		/// - `position_id`: The identifier of position which liquidity is removed from.
+		/// - `amount`: Amount of shares removed from omnipool
+		/// - `min_limit`: The min amount of asset to be removed for the user
+		///
+		/// Emits `LiquidityRemoved` event when successful.
+		///
+		#[pallet::call_index(14)]
+		#[pallet::weight(<T as Config>::WeightInfo::remove_liquidity().saturating_add(T::OmnipoolHooks::on_liquidity_changed_weight()))]
+		#[transactional]
+		pub fn remove_liquidity_with_limit(
+			origin: OriginFor<T>,
+			position_id: T::PositionItemId,
+			amount: Balance,
+			min_limit: Balance,
 		) -> DispatchResult {
 			let who = ensure_signed(origin.clone())?;
 
@@ -790,6 +869,11 @@ pub mod pallet {
 			)
 			.ok_or(ArithmeticError::Overflow)?;
 
+			ensure!(
+				*state_changes.asset.delta_reserve >= min_limit,
+				Error::<T>::SlippageLimit
+			);
+
 			let new_asset_state = asset_state
 				.delta_update(&state_changes.asset)
 				.ok_or(ArithmeticError::Overflow)?;

pallets/omnipool/src/tests/add_liquidity_with_limit.rs

@@ -0,0 +1,248 @@
+use super::*;
+use frame_support::assert_noop;
+
+#[test]
+fn add_liquidity_should_work_when_asset_exists_in_pool() {
+	ExtBuilder::default()
+		.add_endowed_accounts((LP1, 1_000, 5000 * ONE))
+		.add_endowed_accounts((LP2, 1_000, 5000 * ONE))
+		.with_initial_pool(FixedU128::from_float(0.5), FixedU128::from(1))
+		.with_token(1_000, FixedU128::from_float(0.65), LP2, 2000 * ONE)
+		.build()
+		.execute_with(|| {
+			let token_amount = 2000 * ONE;
+			let liq_added = 400 * ONE;
+
+			// ACT
+			let position_id = last_position_id();
+			assert_ok!(Omnipool::add_liquidity_with_limit(
+				RuntimeOrigin::signed(LP1),
+				1_000,
+				liq_added,
+				liq_added
+			));
+
+			// ASSERT - asset state, pool state, position
+			assert_asset_state!(
+				1_000,
+				AssetReserveState {
+					reserve: token_amount + liq_added,
+					hub_reserve: 1560 * ONE,
+					shares: 2400 * ONE,
+					protocol_shares: Balance::zero(),
+					cap: DEFAULT_WEIGHT_CAP,
+					tradable: Tradability::default(),
+				}
+			);
+
+			let position = Positions::<Test>::get(position_id).unwrap();
+
+			let expected = Position::<Balance, AssetId> {
+				asset_id: 1_000,
+				amount: liq_added,
+				shares: liq_added,
+				price: (1560 * ONE, token_amount + liq_added),
+			};
+
+			assert_eq!(position, expected);
+
+			assert_pool_state!(12_060 * ONE, 24_120 * ONE, SimpleImbalance::default());
+
+			assert_balance!(LP1, 1_000, 4600 * ONE);
+
+			let minted_position = POSITIONS.with(|v| v.borrow().get(&position_id).copied());
+
+			assert_eq!(minted_position, Some(LP1));
+		});
+}
+
+#[test]
+fn add_stable_asset_liquidity_works() {
+	ExtBuilder::default()
+		.add_endowed_accounts((LP1, DAI, 5000 * ONE))
+		.add_endowed_accounts((LP2, 1_000, 5000 * ONE))
+		.with_initial_pool(FixedU128::from_float(0.5), FixedU128::from(1))
+		.build()
+		.execute_with(|| {
+			let liq_added = 400 * ONE;
+			let position_id = <NextPositionId<Test>>::get();
+			assert_ok!(Omnipool::add_liquidity_with_limit(
+				RuntimeOrigin::signed(LP1),
+				DAI,
+				liq_added,
+				liq_added
+			));
+
+			assert_asset_state!(
+				DAI,
+				AssetReserveState {
+					reserve: 1000 * ONE + liq_added,
+					hub_reserve: 700000000000000,
+					shares: 1400000000000000,
+					protocol_shares: 0,
+					cap: DEFAULT_WEIGHT_CAP,
+					tradable: Tradability::default(),
+				}
+			);
+
+			let position = Positions::<Test>::get(position_id).unwrap();
+
+			let expected = Position::<Balance, AssetId> {
+				asset_id: DAI,
+				amount: liq_added,
+				shares: liq_added,
+				price: (700 * ONE, 1400 * ONE),
+			};
+
+			assert_eq!(position, expected);
+
+			assert_pool_state!(10_700 * ONE, 21_400 * ONE, SimpleImbalance::default());
+
+			assert_balance!(LP1, DAI, 4600 * ONE);
+
+			let minted_position = POSITIONS.with(|v| v.borrow().get(&position_id).copied());
+
+			assert_eq!(minted_position, Some(LP1));
+		});
+}
+
+#[test]
+fn add_liquidity_for_non_pool_token_fails() {
+	ExtBuilder::default()
+		.add_endowed_accounts((LP1, 1_000, 5000 * ONE))
+		.with_initial_pool(FixedU128::from_float(0.5), FixedU128::from(1))
+		.build()
+		.execute_with(|| {
+			assert_noop!(
+				Omnipool::add_liquidity_with_limit(RuntimeOrigin::signed(LP1), 1_000, 2000 * ONE, 2000 * ONE),
+				Error::<Test>::AssetNotFound
+			);
+		});
+}
+
+#[test]
+fn add_liquidity_with_insufficient_balance_fails() {
+	ExtBuilder::default()
+		.add_endowed_accounts((LP1, 1_000, 5000 * ONE))
+		.with_initial_pool(FixedU128::from_float(0.5), FixedU128::from(1))
+		.with_token(1_000, FixedU128::from_float(0.65), LP1, 2000 * ONE)
+		.build()
+		.execute_with(|| {
+			assert_noop!(
+				Omnipool::add_liquidity_with_limit(RuntimeOrigin::signed(LP3), 1_000, 2000 * ONE, 2000 * ONE),
+				Error::<Test>::InsufficientBalance
+			);
+		});
+}
+
+#[test]
+fn add_liquidity_exceeding_weight_cap_fails() {
+	ExtBuilder::default()
+		.add_endowed_accounts((LP1, 1_000, 5000 * ONE))
+		.with_asset_weight_cap(Permill::from_float(0.1))
+		.with_initial_pool(FixedU128::from_float(0.5), FixedU128::from(1))
+		.with_token(1_000, FixedU128::from_float(0.65), LP1, 100 * ONE)
+		.build()
+		.execute_with(|| {
+			assert_noop!(
+				Omnipool::add_liquidity_with_limit(RuntimeOrigin::signed(LP1), 1_000, 2000 * ONE, 2000 * ONE),
+				Error::<Test>::AssetWeightCapExceeded
+			);
+		});
+}
+
+#[test]
+fn add_insufficient_liquidity_fails() {
+	ExtBuilder::default()
+		.add_endowed_accounts((LP1, 1_000, 5000 * ONE))
+		.with_min_added_liquidity(5 * ONE)
+		.with_asset_weight_cap(Permill::from_float(0.1))
+		.with_initial_pool(FixedU128::from_float(0.5), FixedU128::from(1))
+		.with_token(1_000, FixedU128::from_float(0.65), LP1, 2000 * ONE)
+		.build()
+		.execute_with(|| {
+			assert_noop!(
+				Omnipool::add_liquidity_with_limit(RuntimeOrigin::signed(LP3), 1_000, ONE, ONE),
+				Error::<Test>::InsufficientLiquidity
+			);
+		});
+}
+
+#[test]
+fn add_liquidity_should_fail_when_asset_state_does_not_include_add_liquidity() {
+	ExtBuilder::default()
+		.add_endowed_accounts((LP1, 1_000, 5000 * ONE))
+		.with_min_added_liquidity(ONE)
+		.with_asset_weight_cap(Permill::from_float(0.1))
+		.with_initial_pool(FixedU128::from_float(0.5), FixedU128::from(1))
+		.with_token(1_000, FixedU128::from_float(0.65), LP1, 2000 * ONE)
+		.build()
+		.execute_with(|| {
+			assert_ok!(Omnipool::set_asset_tradable_state(
+				RuntimeOrigin::root(),
+				1000,
+				Tradability::SELL | Tradability::BUY | Tradability::REMOVE_LIQUIDITY
+			));
+
+			assert_noop!(
+				Omnipool::add_liquidity_with_limit(RuntimeOrigin::signed(LP1), 1_000, 2 * ONE, 2 * ONE),
+				Error::<Test>::NotAllowed
+			);
+		});
+}
+
+#[test]
+fn add_liquidity_should_fail_when_prices_differ_and_is_higher() {
+	ExtBuilder::default()
+		.add_endowed_accounts((LP1, 1_000, 5000 * ONE))
+		.add_endowed_accounts((LP2, 1_000, 5000 * ONE))
+		.with_initial_pool(FixedU128::from_float(0.5), FixedU128::from(1))
+		.with_token(1_000, FixedU128::from_float(0.65), LP2, 2000 * ONE)
+		.with_max_allowed_price_difference(Permill::from_percent(1))
+		.with_external_price_adjustment((3, 100, false))
+		.build()
+		.execute_with(|| {
+			assert_noop!(
+				Omnipool::add_liquidity_with_limit(RuntimeOrigin::signed(LP1), 1_000, 400 * ONE, 400 * ONE),
+				Error::<Test>::PriceDifferenceTooHigh
+			);
+		});
+}
+
+#[test]
+fn add_liquidity_should_fail_when_prices_differ_and_is_lower() {
+	ExtBuilder::default()
+		.add_endowed_accounts((LP1, 1_000, 5000 * ONE))
+		.add_endowed_accounts((LP2, 1_000, 5000 * ONE))
+		.with_initial_pool(FixedU128::from_float(0.5), FixedU128::from(1))
+		.with_token(1_000, FixedU128::from_float(0.65), LP2, 2000 * ONE)
+		.with_max_allowed_price_difference(Permill::from_percent(1))
+		.with_external_price_adjustment((3, 100, true))
+		.build()
+		.execute_with(|| {
+			assert_noop!(
+				Omnipool::add_liquidity_with_limit(RuntimeOrigin::signed(LP1), 1_000, 400 * ONE, 400 * ONE),
+				Error::<Test>::PriceDifferenceTooHigh
+			);
+		});
+}
+
+#[test]
+fn add_liquidity_should_fail_when_doesnt_reach_min_limit() {
+	ExtBuilder::default()
+		.add_endowed_accounts((LP1, 1_000, 5000 * ONE))
+		.add_endowed_accounts((LP2, 1_000, 5000 * ONE))
+		.with_initial_pool(FixedU128::from_float(0.5), FixedU128::from(1))
+		.with_token(1_000, FixedU128::from_float(0.65), LP2, 2000 * ONE)
+		.build()
+		.execute_with(|| {
+			//Do some trade not to have parity between liquidity and shares
+			assert_ok!(Omnipool::sell(RuntimeOrigin::signed(LP1), 1_000, DAI, 20 * ONE, 0));
+
+			// ACT
+			assert_noop!(
+				Omnipool::add_liquidity_with_limit(RuntimeOrigin::signed(LP1), 1_000, 500 * ONE, 496 * ONE), //user received 495, so below limit
+				Error::<Test>::SlippageLimit
+			);
+		});
+}

pallets/omnipool/src/tests/mod.rs

@@ -10,11 +10,13 @@ mod invariants;
 mod remove_liquidity;
 mod sell;
 
+mod add_liquidity_with_limit;
 mod barrier;
 mod imbalance;
 pub(crate) mod mock;
 mod positions;
 mod refund;
+mod remove_liquidity_with_limit;
 mod remove_token;
 mod spot_price;
 mod tradability;