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fix(insolvency) kava lend insolvency check bug implementation (#1982)
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* add additional tests that attempt to borrow funds from the insolvent market(should fail), and attempt to borrow funds from the not insolvent market (it will fail, but shouldn't). The not insolvent market should continue to processs borrows

* remove unused code

* make tests less specific for string contains

* add new get total reserves for denoms functionality

* start utilizing GetTotalReservesForDenoms in ValidateBorrow

* update tests for Borrow to not fail when borrowing from an insolvent market

* use get total reseves in GetTotalReservesForDenoms for reusability

* refactor GetTotalReservesForDenoms to GetTotalReservesByCoinDenoms for more clarity

* change the structure for new and old tests and add more verbosity for other tests

* remove print

* remove unneeded code

* add paren

* adjust structure again after initial PR

* remove duplicate test case with invalid test name, and update to use error contains in places where it was validating if true for strings contains

* no need for keeper method
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sesheffield authored Jul 30, 2024
1 parent 916ec6d commit 7f339d2
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Showing 2 changed files with 124 additions and 9 deletions.
36 changes: 35 additions & 1 deletion x/hard/keeper/borrow.go
Original file line number Diff line number Diff line change
Expand Up @@ -118,11 +118,14 @@ func (k Keeper) ValidateBorrow(ctx sdk.Context, borrower sdk.AccAddress, amount

// The reserve coins aren't available for users to borrow
macc := k.accountKeeper.GetModuleAccount(ctx, types.ModuleName)
hardMaccCoins := k.bankKeeper.GetAllBalances(ctx, macc.GetAddress())
hardMaccCoins := FilterCoinsByDenoms(k.bankKeeper.GetAllBalances(ctx, macc.GetAddress()), amount)
reserveCoins, foundReserveCoins := k.GetTotalReserves(ctx)
if !foundReserveCoins {
reserveCoins = sdk.NewCoins()
} else {
reserveCoins = FilterCoinsByDenoms(reserveCoins, amount)
}

fundsAvailableToBorrow, isNegative := hardMaccCoins.SafeSub(reserveCoins...)
if isNegative {
return errorsmod.Wrapf(types.ErrReservesExceedCash, "reserves %s > cash %s", reserveCoins, hardMaccCoins)
Expand Down Expand Up @@ -220,6 +223,37 @@ func (k Keeper) ValidateBorrow(ctx sdk.Context, borrower sdk.AccAddress, amount
return nil
}

// FilterCoinsByDenoms filters the given coins by retaining only those whose denoms
// are present in the filterByCoins list.
//
// Parameters:
// - coins: The list of coins to be filtered.
// - filterByCoins: The list of coins whose denoms will be used as a filter.
//
// Returns:
// - A new list of coins that includes only those coins whose denom is in the filterByCoins list.
func FilterCoinsByDenoms(coins, filterByCoins sdk.Coins) sdk.Coins {
// Create a map to store the denoms that we want to filter by.
denoms := make(map[string]struct{})

// Populate the map with denoms from filterByCoins.
for _, denom := range filterByCoins.Denoms() {
denoms[denom] = struct{}{}
}

// Prepare a slice to hold the filtered coins.
filteredCoins := make(sdk.Coins, 0, len(coins))

// Iterate through the list of coins and add those that have a denom in the denoms map.
for _, coin := range coins {
if _, exists := denoms[coin.Denom]; exists {
filteredCoins = append(filteredCoins, coin)
}
}

return filteredCoins
}

// IncrementBorrowedCoins increments the total amount of borrowed coins by the newCoins parameter
func (k Keeper) IncrementBorrowedCoins(ctx sdk.Context, newCoins sdk.Coins) {
borrowedCoins, found := k.GetBorrowedCoins(ctx)
Expand Down
97 changes: 89 additions & 8 deletions x/hard/keeper/borrow_test.go
Original file line number Diff line number Diff line change
Expand Up @@ -3,6 +3,8 @@ package keeper_test
import (
"time"

"github.com/kava-labs/kava/x/hard/keeper"

sdkmath "cosmossdk.io/math"
"github.com/cometbft/cometbft/crypto"
tmproto "github.com/cometbft/cometbft/proto/tendermint/types"
Expand Down Expand Up @@ -419,7 +421,7 @@ func (suite *KeeperTestSuite) TestBorrow() {
},
},
{
name: "valid borrow followed by protocol reserves exceed available cash for busd when borrowing from ukava(incorrect)",
name: "valid borrow followed by protocol reserves exceed available cash for busd when borrowing from ukava",
setup: setupArgs{
usdxBorrowLimit: sdk.MustNewDecFromStr("100000000000"),
priceKAVA: sdk.MustNewDecFromStr("5.00"),
Expand All @@ -440,10 +442,20 @@ func (suite *KeeperTestSuite) TestBorrow() {
expectPass: true,
},
{
expectedAccountBalance: sdk.NewCoins(),
expectedModAccountBalance: sdk.NewCoins(),
expectPass: false,
contains: "insolvency - protocol reserves exceed available cash",
expectedAccountBalance: sdk.NewCoins(
sdk.NewCoin("ukava", sdkmath.NewInt(51*KAVA_CF)), // now should be 1 ukava more
sdk.NewCoin("btcb", sdkmath.NewInt(100*BTCB_CF)),
sdk.NewCoin("usdx", sdkmath.NewInt(100*USDX_CF)),
sdk.NewCoin("busd", sdkmath.NewInt(100*BUSD_CF)),
sdk.NewCoin("bnb", sdkmath.NewInt(70*BNB_CF)),
sdk.NewCoin("xyz", sdkmath.NewInt(1)),
),
expectedModAccountBalance: sdk.NewCoins(
sdk.NewCoin("ukava", sdkmath.NewInt(1049*KAVA_CF)), // now should be 1 ukava less
sdk.NewCoin("bnb", sdkmath.NewInt(30*BUSD_CF)),
sdk.NewCoin("usdx", sdkmath.NewInt(100*USDX_CF)),
),
expectPass: true,
},
},
borrows: []borrowArgs{
Expand Down Expand Up @@ -797,12 +809,81 @@ func (suite *KeeperTestSuite) TestValidateBorrow() {
suite.ctx = suite.ctx.WithBlockTime(suite.ctx.BlockTime().Add(blockDuration))
hard.BeginBlocker(suite.ctx, suite.keeper)

// TODO: this is wrong, since usdk is not insolvent, ukava is.
err = suite.keeper.Borrow(
suite.ctx,
borrower,
sdk.NewCoins(sdk.NewCoin("usdx", sdkmath.NewInt(25*USDX_CF))),
)
suite.Require().Error(err)
suite.Require().ErrorContains(err, "protocol reserves exceed available cash")
suite.Require().NoError(err)
}

func (suite *KeeperTestSuite) TestFilterCoinsByDenoms() {
type args struct {
coins sdk.Coins
filterByCoins sdk.Coins
}
tests := []struct {
name string
args args
want sdk.Coins
}{
{
name: "more coins than filtered coins",
args: args{
coins: sdk.NewCoins(
sdk.NewCoin("ukava", sdkmath.NewInt(1000*KAVA_CF)),
sdk.NewCoin("usdx", sdkmath.NewInt(200*USDX_CF)),
sdk.NewCoin("busd", sdkmath.NewInt(100*BUSD_CF)),
),
filterByCoins: sdk.NewCoins(
sdk.NewCoin("usdx", sdkmath.NewInt(25*USDX_CF)),
sdk.NewCoin("ukava", sdkmath.NewInt(25*KAVA_CF)),
),
},
want: sdk.NewCoins(
sdk.NewCoin("usdx", sdkmath.NewInt(200*USDX_CF)),
sdk.NewCoin("ukava", sdkmath.NewInt(1000*KAVA_CF)),
),
},
{
name: "less coins than filtered coins",
args: args{
coins: sdk.NewCoins(
sdk.NewCoin("ukava", sdkmath.NewInt(1000*KAVA_CF)),
),
filterByCoins: sdk.NewCoins(
sdk.NewCoin("usdx", sdkmath.NewInt(25*USDX_CF)),
sdk.NewCoin("ukava", sdkmath.NewInt(25*KAVA_CF)),
),
},
want: sdk.NewCoins(
sdk.NewCoin("ukava", sdkmath.NewInt(1000*KAVA_CF)),
),
},
{
name: "no filter coins ",
args: args{
coins: sdk.NewCoins(
sdk.NewCoin("ukava", sdkmath.NewInt(1000*KAVA_CF)),
),
filterByCoins: sdk.NewCoins(),
},
want: sdk.NewCoins(),
},
{
name: "no coins ",
args: args{
coins: sdk.NewCoins(),
filterByCoins: sdk.NewCoins(
sdk.NewCoin("usdx", sdkmath.NewInt(25*USDX_CF))),
},
want: sdk.NewCoins(),
},
}
for _, tt := range tests {
suite.Run(tt.name, func() {
got := keeper.FilterCoinsByDenoms(tt.args.coins, tt.args.filterByCoins)
suite.Require().Equal(tt.want, got)
})
}
}

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