@defisaver/positions-sdk 2.1.5 → 2.1.6-dev-debt-in-front

package/cjs/fluid/index.js

@@ -98,6 +98,7 @@ const getChainLinkPricesForTokens = (tokens, network, client) => __awaiter(void
     const btcPriceChainlink = new decimal_js_1.default(results[1].result).div(1e8).toString();
     let offset = 2; // wstETH and weETH has 3 calls, while others have only 1, so we need to keep track. First 2 are static calls for eth and btc prices
     return noDuplicateTokens.reduce((acc, token, i) => {
+        var _a;
         const assetInfo = (0, tokens_1.getAssetInfoByAddress)(token, network);
         switch (assetInfo.symbol) {
             case 'USDA':
@@ -142,7 +143,7 @@ const getChainLinkPricesForTokens = (tokens, network, client) => __awaiter(void
             }
             default:
                 // @ts-ignore
-                if (results[i + offset].result[1]) {
+                if ((_a = results[i + offset].result) === null || _a === void 0 ? void 0 : _a[1]) {
                     // @ts-ignore
                     acc[token] = new decimal_js_1.default(results[i + offset].result[1].toString()).div(1e8).toString();
                 }

package/cjs/liquityV2/index.d.ts

@@ -23,6 +23,8 @@ export declare const getLiquityV2UserTroveIds: (provider: EthereumProvider, netw
     }[];
     nextFreeTroveIndex: string;
 }>;
+export declare const calculateDebtInFrontLiquityV2: (markets: Record<LiquityV2Versions, LiquityV2MarketData>, selectedMarket: LiquityV2Versions, allMarketsUnbackedDebts: Record<LiquityV2Versions, string>, interestRateDebtInFront: string) => string;
+export declare const getDebtInFrontForInterestRateIncludingNewDebtLiquityV2: (newDebt: string, markets: Record<LiquityV2Versions, LiquityV2MarketData>, selectedMarket: LiquityV2Versions, provider: Client, network: NetworkNumber, interestRate: string) => Promise<string>;
 export declare const getDebtInFrontForInterestRateLiquityV2: (markets: Record<LiquityV2Versions, LiquityV2MarketData>, selectedMarket: LiquityV2Versions, provider: EthereumProvider, network: NetworkNumber, isLegacy: boolean, interestRate: string, debtInFrontBeingMoved?: string) => Promise<string>;
 export declare const _getLiquityV2TroveData: (provider: Client, network: NetworkNumber, { selectedMarket, assetsData, troveId, allMarketsData, }: {
     selectedMarket: LiquityV2MarketInfo;

package/cjs/liquityV2/index.js

@@ -12,7 +12,7 @@ var __importDefault = (this && this.__importDefault) || function (mod) {
     return (mod && mod.__esModule) ? mod : { "default": mod };
 };
 Object.defineProperty(exports, "__esModule", { value: true });
-exports.getLiquitySAndYBold = exports.getLiquityV2Staking = exports.getLiquityV2ClaimableCollateral = exports.getLiquityV2TroveData = exports._getLiquityV2TroveData = exports.getDebtInFrontForInterestRateLiquityV2 = exports.getLiquityV2UserTroveIds = exports._getLiquityV2UserTroveIds = exports.getLiquityV2MarketData = exports._getLiquityV2MarketData = void 0;
+exports.getLiquitySAndYBold = exports.getLiquityV2Staking = exports.getLiquityV2ClaimableCollateral = exports.getLiquityV2TroveData = exports._getLiquityV2TroveData = exports.getDebtInFrontForInterestRateLiquityV2 = exports.getDebtInFrontForInterestRateIncludingNewDebtLiquityV2 = exports.calculateDebtInFrontLiquityV2 = exports.getLiquityV2UserTroveIds = exports._getLiquityV2UserTroveIds = exports.getLiquityV2MarketData = exports._getLiquityV2MarketData = void 0;
 const decimal_js_1 = __importDefault(require("decimal.js"));
 const tokens_1 = require("@defisaver/tokens");
 const contracts_1 = require("../contracts");
@@ -201,11 +201,39 @@ const getAllMarketsUnbackedDebts = (markets, isLegacy, provider, network) => __a
     return Object.fromEntries(allMarketsUnbackedDebt);
 });
 const calculateDebtInFrontLiquityV2 = (markets, selectedMarket, allMarketsUnbackedDebts, interestRateDebtInFront) => {
+    // Sanity check to avoid division by 0. Very unlikely to ever happen.
+    const selectedMarketTotalBorrow = new decimal_js_1.default(markets[selectedMarket].assetsData[(0, markets_1.LiquityV2Markets)(common_1.NetworkNumber.Eth)[selectedMarket].debtToken].totalBorrow);
+    if (selectedMarketTotalBorrow.eq(0))
+        return new decimal_js_1.default(0).toString();
     const selectedMarketUnbackedDebt = new decimal_js_1.default(allMarketsUnbackedDebts[selectedMarket]);
     const { isLegacy } = (0, markets_1.LiquityV2Markets)(common_1.NetworkNumber.Eth)[selectedMarket];
-    if (selectedMarketUnbackedDebt.eq(0))
-        return interestRateDebtInFront;
-    const amountBeingReedemedOnEachMarket = Object.entries(markets).map(([version, market]) => {
+    const totalUnbackedDebt = Object.values(allMarketsUnbackedDebts).reduce((acc, val) => acc.plus(new decimal_js_1.default(val)), new decimal_js_1.default(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 decimal_js_1.default(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 } = (0, markets_1.LiquityV2Markets)(common_1.NetworkNumber.Eth)[version];
+            if (version === selectedMarket && isLegacyMarket !== isLegacy)
+                return new decimal_js_1.default(interestRateDebtInFront);
+            const { assetsData } = market;
+            const { debtToken } = (0, markets_1.LiquityV2Markets)(common_1.NetworkNumber.Eth)[version];
+            // For other markets, subtract their unbacked debt as it will be cleared in first redemption call
+            const marketUnbackedDebt = new decimal_js_1.default(allMarketsUnbackedDebts[version]);
+            const totalBorrow = new decimal_js_1.default(assetsData[debtToken].totalBorrow).sub(marketUnbackedDebt);
+            const amountToRedeem = new decimal_js_1.default(interestRateDebtInFront).mul(totalBorrow).div(selectedMarketTotalBorrow);
+            return decimal_js_1.default.min(amountToRedeem, totalBorrow);
+        });
+        const redemptionAmount = amountBeingRedeemedOnEachMarketByTotalBorrow.reduce((acc, val) => acc.plus(val), new decimal_js_1.default(0));
+        return totalUnbackedDebt.plus(redemptionAmount).toString();
+    }
+    const amountBeingRedeemedOnEachMarketByUnbackedDebt = Object.entries(markets).map(([version, market]) => {
         const { isLegacy: isLegacyMarket } = (0, markets_1.LiquityV2Markets)(common_1.NetworkNumber.Eth)[version];
         if (version === selectedMarket && isLegacyMarket !== isLegacy)
             return new decimal_js_1.default(interestRateDebtInFront);
@@ -213,16 +241,31 @@ const calculateDebtInFrontLiquityV2 = (markets, selectedMarket, allMarketsUnback
         const { debtToken } = (0, markets_1.LiquityV2Markets)(common_1.NetworkNumber.Eth)[version];
         const unbackedDebt = new decimal_js_1.default(allMarketsUnbackedDebts[version]);
         const totalBorrow = new decimal_js_1.default(assetsData[debtToken].totalBorrow);
-        const amountToReedem = new decimal_js_1.default(interestRateDebtInFront).mul(unbackedDebt).div(selectedMarketUnbackedDebt);
-        return decimal_js_1.default.min(amountToReedem, totalBorrow);
+        const amountToRedeem = new decimal_js_1.default(interestRateDebtInFront).mul(unbackedDebt).div(selectedMarketUnbackedDebt);
+        return decimal_js_1.default.min(amountToRedeem, totalBorrow);
     });
-    return amountBeingReedemedOnEachMarket.reduce((acc, val) => acc.plus(val), new decimal_js_1.default(0)).toString();
+    return amountBeingRedeemedOnEachMarketByUnbackedDebt.reduce((acc, val) => acc.plus(val), new decimal_js_1.default(0)).toString();
 };
+exports.calculateDebtInFrontLiquityV2 = calculateDebtInFrontLiquityV2;
+// @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.
+const getDebtInFrontForInterestRateIncludingNewDebtLiquityV2 = (newDebt, markets, selectedMarket, provider, network, interestRate) => __awaiter(void 0, void 0, void 0, function* () {
+    const marketsWithNewDebt = structuredClone(markets);
+    const selectedMarketDebtToken = (0, markets_1.LiquityV2Markets)(network)[selectedMarket].debtToken;
+    const currentTotalBorrow = new decimal_js_1.default(marketsWithNewDebt[selectedMarket].assetsData[selectedMarketDebtToken].totalBorrow);
+    marketsWithNewDebt[selectedMarket].assetsData[selectedMarketDebtToken].totalBorrow = currentTotalBorrow.add(newDebt).toString();
+    const { isLegacy } = (0, markets_1.LiquityV2Markets)(common_1.NetworkNumber.Eth)[selectedMarket];
+    const allMarketsUnbackedDebts = yield getAllMarketsUnbackedDebts(marketsWithNewDebt, isLegacy, provider, network);
+    const interestRateDebtInFront = new decimal_js_1.default(yield getDebtInFrontForInterestRateSingleMarketLiquityV2(provider, network, isLegacy, (0, markets_1.LiquityV2Markets)(network)[selectedMarket].marketAddress, interestRate));
+    return (0, exports.calculateDebtInFrontLiquityV2)(marketsWithNewDebt, selectedMarket, allMarketsUnbackedDebts, interestRateDebtInFront.toString());
+});
+exports.getDebtInFrontForInterestRateIncludingNewDebtLiquityV2 = getDebtInFrontForInterestRateIncludingNewDebtLiquityV2;
 const getDebtInFrontLiquityV2 = (markets, selectedMarket, provider, network, viewContract, troveId) => __awaiter(void 0, void 0, void 0, function* () {
     const { isLegacy } = (0, markets_1.LiquityV2Markets)(common_1.NetworkNumber.Eth)[selectedMarket];
     const allMarketsUnbackedDebts = yield getAllMarketsUnbackedDebts(markets, isLegacy, provider, network);
     const interestRateDebtInFront = yield getDebtInFrontForSingleMarketLiquityV2(provider, network, isLegacy, (0, markets_1.LiquityV2Markets)(network)[selectedMarket].marketAddress, troveId);
-    return calculateDebtInFrontLiquityV2(markets, selectedMarket, allMarketsUnbackedDebts, interestRateDebtInFront.toString());
+    return (0, exports.calculateDebtInFrontLiquityV2)(markets, selectedMarket, allMarketsUnbackedDebts, interestRateDebtInFront.toString());
 });
 /**
  * @param markets
@@ -237,7 +280,7 @@ const _getDebtInFrontForInterestRateLiquityV2 = (markets_2, selectedMarket_1, pr
     const allMarketsUnbackedDebts = yield getAllMarketsUnbackedDebts(markets, isLegacy, provider, network);
     const interestRateDebtInFront = new decimal_js_1.default(yield getDebtInFrontForInterestRateSingleMarketLiquityV2(provider, network, isLegacy, (0, markets_1.LiquityV2Markets)(network)[selectedMarket].marketAddress, interestRate))
         .sub(debtInFrontBeingMoved);
-    return calculateDebtInFrontLiquityV2(markets, selectedMarket, allMarketsUnbackedDebts, interestRateDebtInFront.toString());
+    return (0, exports.calculateDebtInFrontLiquityV2)(markets, selectedMarket, allMarketsUnbackedDebts, interestRateDebtInFront.toString());
 });
 const getDebtInFrontForInterestRateLiquityV2 = (markets_2, selectedMarket_1, provider_1, network_1, isLegacy_1, interestRate_1, ...args_1) => __awaiter(void 0, [markets_2, selectedMarket_1, provider_1, network_1, isLegacy_1, interestRate_1, ...args_1], void 0, function* (markets, selectedMarket, provider, network, isLegacy, interestRate, debtInFrontBeingMoved = '0') { return _getDebtInFrontForInterestRateLiquityV2(markets, selectedMarket, (0, viem_1.getViemProvider)(provider, network), network, isLegacy, interestRate, debtInFrontBeingMoved); });
 exports.getDebtInFrontForInterestRateLiquityV2 = getDebtInFrontForInterestRateLiquityV2;

package/esm/fluid/index.js

@@ -92,6 +92,7 @@ const getChainLinkPricesForTokens = (tokens, network, client) => __awaiter(void
     const btcPriceChainlink = new Dec(results[1].result).div(1e8).toString();
     let offset = 2; // wstETH and weETH has 3 calls, while others have only 1, so we need to keep track. First 2 are static calls for eth and btc prices
     return noDuplicateTokens.reduce((acc, token, i) => {
+        var _a;
         const assetInfo = getAssetInfoByAddress(token, network);
         switch (assetInfo.symbol) {
             case 'USDA':
@@ -136,7 +137,7 @@ const getChainLinkPricesForTokens = (tokens, network, client) => __awaiter(void
             }
             default:
                 // @ts-ignore
-                if (results[i + offset].result[1]) {
+                if ((_a = results[i + offset].result) === null || _a === void 0 ? void 0 : _a[1]) {
                     // @ts-ignore
                     acc[token] = new Dec(results[i + offset].result[1].toString()).div(1e8).toString();
                 }

package/esm/liquityV2/index.d.ts

@@ -23,6 +23,8 @@ export declare const getLiquityV2UserTroveIds: (provider: EthereumProvider, netw
     }[];
     nextFreeTroveIndex: string;
 }>;
+export declare const calculateDebtInFrontLiquityV2: (markets: Record<LiquityV2Versions, LiquityV2MarketData>, selectedMarket: LiquityV2Versions, allMarketsUnbackedDebts: Record<LiquityV2Versions, string>, interestRateDebtInFront: string) => string;
+export declare const getDebtInFrontForInterestRateIncludingNewDebtLiquityV2: (newDebt: string, markets: Record<LiquityV2Versions, LiquityV2MarketData>, selectedMarket: LiquityV2Versions, provider: Client, network: NetworkNumber, interestRate: string) => Promise<string>;
 export declare const getDebtInFrontForInterestRateLiquityV2: (markets: Record<LiquityV2Versions, LiquityV2MarketData>, selectedMarket: LiquityV2Versions, provider: EthereumProvider, network: NetworkNumber, isLegacy: boolean, interestRate: string, debtInFrontBeingMoved?: string) => Promise<string>;
 export declare const _getLiquityV2TroveData: (provider: Client, network: NetworkNumber, { selectedMarket, assetsData, troveId, allMarketsData, }: {
     selectedMarket: LiquityV2MarketInfo;

package/esm/liquityV2/index.js

@@ -190,12 +190,40 @@ const getAllMarketsUnbackedDebts = (markets, isLegacy, provider, network) => __a
     })));
     return Object.fromEntries(allMarketsUnbackedDebt);
 });
-const calculateDebtInFrontLiquityV2 = (markets, selectedMarket, allMarketsUnbackedDebts, interestRateDebtInFront) => {
+export const calculateDebtInFrontLiquityV2 = (markets, selectedMarket, allMarketsUnbackedDebts, interestRateDebtInFront) => {
+    // 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 amountBeingReedemedOnEachMarket = Object.entries(markets).map(([version, market]) => {
+    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];
+            if (version === selectedMarket && isLegacyMarket !== isLegacy)
+                return new Dec(interestRateDebtInFront);
+            const { assetsData } = market;
+            const { debtToken } = LiquityV2Markets(NetworkNumber.Eth)[version];
+            // For other markets, subtract their unbacked debt as it will be cleared in first redemption call
+            const marketUnbackedDebt = new Dec(allMarketsUnbackedDebts[version]);
+            const totalBorrow = new Dec(assetsData[debtToken].totalBorrow).sub(marketUnbackedDebt);
+            const amountToRedeem = new Dec(interestRateDebtInFront).mul(totalBorrow).div(selectedMarketTotalBorrow);
+            return Dec.min(amountToRedeem, totalBorrow);
+        });
+        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];
         if (version === selectedMarket && isLegacyMarket !== isLegacy)
             return new Dec(interestRateDebtInFront);
@@ -203,11 +231,24 @@ const calculateDebtInFrontLiquityV2 = (markets, selectedMarket, allMarketsUnback
         const { debtToken } = LiquityV2Markets(NetworkNumber.Eth)[version];
         const unbackedDebt = new Dec(allMarketsUnbackedDebts[version]);
         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 = (newDebt, markets, selectedMarket, provider, network, interestRate) => __awaiter(void 0, void 0, void 0, function* () {
+    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 = yield getAllMarketsUnbackedDebts(marketsWithNewDebt, isLegacy, provider, network);
+    const interestRateDebtInFront = new Dec(yield getDebtInFrontForInterestRateSingleMarketLiquityV2(provider, network, isLegacy, LiquityV2Markets(network)[selectedMarket].marketAddress, interestRate));
+    return calculateDebtInFrontLiquityV2(marketsWithNewDebt, selectedMarket, allMarketsUnbackedDebts, interestRateDebtInFront.toString());
+});
 const getDebtInFrontLiquityV2 = (markets, selectedMarket, provider, network, viewContract, troveId) => __awaiter(void 0, void 0, void 0, function* () {
     const { isLegacy } = LiquityV2Markets(NetworkNumber.Eth)[selectedMarket];
     const allMarketsUnbackedDebts = yield getAllMarketsUnbackedDebts(markets, isLegacy, provider, network);

package/package.json

@@ -1,6 +1,6 @@
 {
   "name": "@defisaver/positions-sdk",
-  "version": "2.1.5",
+  "version": "2.1.6-dev-debt-in-front",
   "description": "",
   "main": "./cjs/index.js",
   "module": "./esm/index.js",
@@ -21,7 +21,7 @@
   "author": "",
   "license": "ISC",
   "dependencies": {
-    "@defisaver/tokens": "^1.7.1",
+    "@defisaver/tokens": "^1.7.5",
     "@types/lodash": "^4.17.15",
     "@types/memoizee": "^0.4.12",
     "decimal.js": "^10.6.0",

package/src/fluid/index.ts

@@ -195,7 +195,7 @@ const getChainLinkPricesForTokens = async (
 
       default:
         // @ts-ignore
-        if (results[i + offset].result[1]) {
+        if (results[i + offset].result?.[1]) {
           // @ts-ignore
           acc[token] = new Dec(results[i + offset].result[1]!.toString() as string).div(1e8).toString();
         } else if (results[i + offset].result) {

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) => {