@defisaver/positions-sdk 2.1.14 → 2.1.16

package/package.json

@@ -1,6 +1,6 @@
 {
   "name": "@defisaver/positions-sdk",
-  "version": "2.1.14",
+  "version": "2.1.16",
   "description": "",
   "main": "./cjs/index.js",
   "module": "./esm/index.js",

package/src/liquityV2/index.ts

@@ -264,23 +264,69 @@ const getAllMarketsUnbackedDebts = async (markets: Record<LiquityV2Versions, Liq
   return Object.fromEntries(allMarketsUnbackedDebt) as Record<LiquityV2Versions, string>;
 };
 
-const calculateDebtInFrontLiquityV2 = (markets: Record<LiquityV2Versions, LiquityV2MarketData>, selectedMarket: LiquityV2Versions, allMarketsUnbackedDebts: Record<LiquityV2Versions, string>, interestRateDebtInFront: string): string => {
+export const calculateDebtInFrontLiquityV2 = (markets: Record<LiquityV2Versions, LiquityV2MarketData>, selectedMarket: LiquityV2Versions, allMarketsUnbackedDebts: Record<LiquityV2Versions, string>, interestRateDebtInFront: string): string => {
+  // Sanity check to avoid division by 0. Very unlikely to ever happen.
+  const selectedMarketTotalBorrow = new Dec(markets[selectedMarket].assetsData[LiquityV2Markets(NetworkNumber.Eth)[selectedMarket].debtToken].totalBorrow);
+  if (selectedMarketTotalBorrow.eq(0)) return new Dec(0).toString();
+
   const selectedMarketUnbackedDebt = new Dec(allMarketsUnbackedDebts[selectedMarket]);
   const { isLegacy } = LiquityV2Markets(NetworkNumber.Eth)[selectedMarket];
-  if (selectedMarketUnbackedDebt.eq(0)) return interestRateDebtInFront;
+  const totalUnbackedDebt = Object.values(allMarketsUnbackedDebts).reduce((acc, val) => acc.plus(new Dec(val)), new Dec(0));
+
+  // When totalUnbackedDebt is 0, redemptions will be proportional with the branch size and not to unbacked debt.
+  // When unbacked debt is 0 for branch, next redemption call won't touch that branch, so in order to estimate total debt in front we will:
+  // - First add up all the unbacked debt from other branches, as that will be the only debt that will be redeemed on the fist redemption call
+  // - Perform split the same way as we would do when totalUnbackedDebt == 0, this would represent the second call to the redemption function
+  if (selectedMarketUnbackedDebt.eq(0)) {
+    // Special case if the branch debt in front is 0, it means that all debt in front is unbacked debt from other branches.
+    if (new Dec(interestRateDebtInFront).eq(0)) return totalUnbackedDebt.toString();
+
+    // Then calculate how much of that estimated amount would go to each branch
+    // Second redemption call - calculate proportional redemption based on updated total debt
+    const amountBeingRedeemedOnEachMarketByTotalBorrow = Object.entries(markets).map(([version, market]) => {
+      const { isLegacy: isLegacyMarket } = LiquityV2Markets(NetworkNumber.Eth)[version as LiquityV2Versions];
+      if (version === selectedMarket && isLegacyMarket !== isLegacy) return new Dec(interestRateDebtInFront);
+      const { assetsData } = market;
+      const { debtToken } = LiquityV2Markets(NetworkNumber.Eth)[version as LiquityV2Versions];
+      // For other markets, subtract their unbacked debt as it will be cleared in first redemption call
+      const marketUnbackedDebt = new Dec(allMarketsUnbackedDebts[version as LiquityV2Versions]);
+      const totalBorrow = new Dec(assetsData[debtToken].totalBorrow).sub(marketUnbackedDebt);
+      const amountToRedeem = new Dec(interestRateDebtInFront).mul(totalBorrow).div(selectedMarketTotalBorrow);
+      return Dec.min(amountToRedeem, totalBorrow);
+    });
 
-  const amountBeingReedemedOnEachMarket = Object.entries(markets).map(([version, market]) => {
+    const redemptionAmount = amountBeingRedeemedOnEachMarketByTotalBorrow.reduce((acc, val) => acc.plus(val), new Dec(0));
+    return totalUnbackedDebt.plus(redemptionAmount).toString();
+  }
+
+  const amountBeingRedeemedOnEachMarketByUnbackedDebt = Object.entries(markets).map(([version, market]) => {
     const { isLegacy: isLegacyMarket } = LiquityV2Markets(NetworkNumber.Eth)[version as LiquityV2Versions];
     if (version === selectedMarket && isLegacyMarket !== isLegacy) return new Dec(interestRateDebtInFront);
     const { assetsData } = market;
     const { debtToken } = LiquityV2Markets(NetworkNumber.Eth)[version as LiquityV2Versions];
     const unbackedDebt = new Dec(allMarketsUnbackedDebts[version as LiquityV2Versions]);
     const totalBorrow = new Dec(assetsData[debtToken].totalBorrow);
-    const amountToReedem = new Dec(interestRateDebtInFront).mul(unbackedDebt).div(selectedMarketUnbackedDebt);
-    return Dec.min(amountToReedem, totalBorrow);
+    const amountToRedeem = new Dec(interestRateDebtInFront).mul(unbackedDebt).div(selectedMarketUnbackedDebt);
+    return Dec.min(amountToRedeem, totalBorrow);
   });
 
-  return amountBeingReedemedOnEachMarket.reduce((acc, val) => acc.plus(val), new Dec(0)).toString();
+  return amountBeingRedeemedOnEachMarketByUnbackedDebt.reduce((acc, val) => acc.plus(val), new Dec(0)).toString();
+};
+
+// @dev The amount redeemed on each branch depends on the unbacked debt of every branch (the difference between total borrow and stability pool deposits).
+// When new debt is generated on the selected market, the unbacked debt will increase, resulting in a higher redemption amount on that branch.
+// This function accepts the new debt that's about to be generated (e.g., trove creation) and estimates the debt in front based on the new state.
+export const getDebtInFrontForInterestRateIncludingNewDebtLiquityV2 = async (newDebt: string, markets: Record<LiquityV2Versions, LiquityV2MarketData>, selectedMarket: LiquityV2Versions, provider: Client, network: NetworkNumber, interestRate: string) => {
+  const marketsWithNewDebt = structuredClone(markets);
+  const selectedMarketDebtToken = LiquityV2Markets(network)[selectedMarket].debtToken;
+  const currentTotalBorrow = new Dec(marketsWithNewDebt[selectedMarket].assetsData[selectedMarketDebtToken].totalBorrow);
+  marketsWithNewDebt[selectedMarket].assetsData[selectedMarketDebtToken].totalBorrow = currentTotalBorrow.add(newDebt).toString();
+
+  const { isLegacy } = LiquityV2Markets(NetworkNumber.Eth)[selectedMarket];
+  const allMarketsUnbackedDebts = await getAllMarketsUnbackedDebts(marketsWithNewDebt, isLegacy, provider, network);
+  const interestRateDebtInFront = new Dec(await getDebtInFrontForInterestRateSingleMarketLiquityV2(provider, network, isLegacy, LiquityV2Markets(network)[selectedMarket].marketAddress, interestRate));
+
+  return calculateDebtInFrontLiquityV2(marketsWithNewDebt, selectedMarket, allMarketsUnbackedDebts, interestRateDebtInFront.toString());
 };
 
 const getDebtInFrontLiquityV2 = async (markets: Record<LiquityV2Versions, LiquityV2MarketData>, selectedMarket: LiquityV2Versions, provider: Client, network: NetworkNumber, viewContract: any, troveId: string) => {