Merge pull request #102 from SundaeSwap-finance/luivatra/fix-protocol-fees-management

Move protocol fee management to treasury admin

Author: Luivatra

aiken.lock

@@ -46,4 +46,4 @@ requirements = []
 source = "github"
 
 [etags]
-"aiken-lang/fuzz@main" = [{ secs_since_epoch = 1753181341, nanos_since_epoch = 812689792 }, "9843473958e51725a9274b487d2d4aac0395ec1a2e30f090724fa737226bc127"]
+"aiken-lang/fuzz@main" = [{ secs_since_epoch = 1758102049, nanos_since_epoch = 210673971 }, "9843473958e51725a9274b487d2d4aac0395ec1a2e30f090724fa737226bc127"]

lib/tests/examples/ex_settings.ak

@@ -1,11 +1,10 @@
-use aiken/cbor
 use cardano/address.{Address, Script, VerificationKey}
 use cardano/assets
 use cardano/transaction.{InlineDatum, Input, Output}
 use sundae/multisig
 use tests/examples/ex_shared.{mk_output_reference,
   print_example, script_address}
-use types/settings.{SettingsDatum}
+use types/settings.{ProtocolFeeBasisPointsExtension, SettingsDatum}
 
 pub const example_settings_admin =
   #"6313a1d2c296eb3341e159b6c5c6991de11e81062b95108c9aa024ad"
@@ -32,7 +31,14 @@ pub fn mk_valid_settings_datum(scoopers: List<ByteArray>) -> SettingsDatum {
     simple_fee: 2_500_000,
     strategy_fee: 5_000_000,
     pool_creation_fee: 0,
-    extensions: Void,
+    extensions: [
+      Pair(
+        0,
+        as_data(
+          ProtocolFeeBasisPointsExtension { protocol_fee_basis_points: (0, 0) },
+        ),
+      ),
+    ],
   }
 }
 
@@ -57,9 +63,7 @@ pub fn mk_valid_settings_input(scoopers: List<ByteArray>, ix: Int) -> Input {
 }
 
 test example_settings_datum() {
-  print_example(
-    cbor.serialise(mk_valid_settings_datum([example_settings_admin])),
-  )
+  print_example(mk_valid_settings_datum([example_settings_admin]))
 }
 
 test example_big_settings_datum() {
@@ -207,7 +211,16 @@ test example_mainnet_boot_settings_datum() {
       simple_fee: 168_000,
       strategy_fee: 168_000,
       pool_creation_fee: 0,
-      extensions: 0,
+      extensions: [
+        Pair(
+          0,
+          as_data(
+            ProtocolFeeBasisPointsExtension {
+              protocol_fee_basis_points: (0, 0),
+            },
+          ),
+        ),
+      ],
     },
   )
 }

lib/types/settings.ak

@@ -1,5 +1,6 @@
 use aiken/builtin
 use aiken/collection/dict
+use aiken/collection/pairs
 use aiken/crypto.{VerificationKey}
 use cardano/address.{Address, Credential}
 use cardano/assets.{AssetName, PolicyId}
@@ -67,7 +68,12 @@ pub type SettingsDatum {
   /// - publish data for convenient and canonical access by off-chain actors
   /// - expose data to the script conditions in the multisig scripts of the two administrator roles
   /// - expose additional settings for more advanced pool and order types to operate off of
-  extensions: Data,
+  extensions: Pairs<Int, Data>,
+}
+
+pub type ProtocolFeeBasisPointsExtension {
+  /// The default protocol fee basis points to charge on each trade for bid (A -> B) and ask (B -> A) orders, for pools that don't override it
+  protocol_fee_basis_points: (Int, Int),
 }
 
 /// The settings redeemer can be spent for two different purposes
@@ -81,6 +87,19 @@ pub type SettingsRedeemer {
 /// The name of the token that authenticates the settings UTXO
 pub const settings_nft_name: AssetName = "settings"
 
+pub fn find_protocol_fee_extension(
+  settings: SettingsDatum,
+) -> Option<ProtocolFeeBasisPointsExtension> {
+  let maybe_extension = pairs.get_first(settings.extensions, 0)
+  when maybe_extension is {
+    Some(extension_data) -> {
+      expect extension: ProtocolFeeBasisPointsExtension = extension_data
+      Some(extension)
+    }
+    None -> None
+  }
+}
+
 /// Scan over the list of reference inputs to find the settings datum, and ensure it's the correct one
 /// Note that this makes the assumption that the settings datum is the first reference input, for performance
 /// This means that when storing reference scripts on-chain, there needs to be a small amount of "farming" to select

validators/pool.ak

@@ -24,7 +24,10 @@ use types/pool.{
   MintLP, PoolMintRedeemer, PoolRedeemer, PoolScoop, StablePoolDatum,
   UpdatePoolFees, WithdrawFees,
 } as types_pool
-use types/settings.{SettingsDatum, find_settings_datum}
+use types/settings.{
+  ProtocolFeeBasisPointsExtension, SettingsDatum, find_protocol_fee_extension,
+  find_settings_datum,
+}
 
 /// An implementation of a curve-like "Stableswap" invariant that enables more efficient trades for stablecoin pairs.
 ///
@@ -461,9 +464,9 @@ validator pool(
             reserve_a
           }
 
-        // We follow Curve's model for initial liquidity, by setting it to the initial sum invariant
+        // We follow Curve's model for initial liquidity, by setting it to the initial sum invariant, but divide by precision to avoid very large numbers potentially causing overflow
         expect
-          pool_output_datum.sum_invariant == pool_output_datum.circulating_lp
+          pool_output_datum.sum_invariant / calc_precision == pool_output_datum.circulating_lp
 
         // And check that we mint the correct tokens, and nothing else.
         let expected_mint =
@@ -518,6 +521,9 @@ validator pool(
         //    and potentially even on access UIs for the Sundae protocol
         expect metadata_output.datum == InlineDatum(Void)
 
+        expect Some(protocol_fee_extension) =
+          find_protocol_fee_extension(settings_datum)
+
         // And check that the datum is initialized correctly; This is part of why we have a minting policy handling this,
         // as it allows us to authenticate the providence of the datum.
         // A datum is valid so long as
@@ -541,6 +547,7 @@ validator pool(
             shared.fees_in_legal_range(
               pool_output_datum.protocol_fee_basis_points.2nd,
             ),
+            protocol_fee_extension.protocol_fee_basis_points == pool_output_datum.protocol_fee_basis_points,
             pool_output_datum.linear_amplification > 0,
             liquidity_invariant(
               reserve_a * calc_precision,
@@ -901,7 +908,8 @@ validator manage(settings_policy_id: PolicyId) {
             pool_output_address.payment_credential == Script(pool_script_hash)
 
           // As part of withdrawing, we should decrease the protocol fees by the amount we're withdrawing
-          // but, importantly, *nothing else*; so we construct a datum with everything from the initial datum, plus the protofol fees updated
+          // but, the treasury admin is also allowed to update the protocol fees basis points, but nothing else in the datum
+          // is allowed to be changed.
           let expected_datum =
             StablePoolDatum {
               ..datum,
@@ -910,6 +918,7 @@ validator manage(settings_policy_id: PolicyId) {
                 initial_fee_a - amount.2nd,
                 initial_fee_b - amount.3rd,
               ),
+              protocol_fee_basis_points: output_datum.protocol_fee_basis_points,
             }
           expect output_datum == expected_datum
 
@@ -957,17 +966,13 @@ validator manage(settings_policy_id: PolicyId) {
 
         let StablePoolDatum {
           lp_fee_basis_points,
-          protocol_fee_basis_points,
-          protocol_fees,
           fee_manager: output_fee_manager,
           ..
         } = pool_output_datum
 
         // Make sure we don't update the fees to negative or above 100%
         expect shared.fees_in_legal_range(lp_fee_basis_points.1st)
         expect shared.fees_in_legal_range(lp_fee_basis_points.2nd)
-        expect shared.fees_in_legal_range(protocol_fee_basis_points.1st)
-        expect shared.fees_in_legal_range(protocol_fee_basis_points.2nd)
 
         // Check that the *current* fee manager approves the update
         expect Some(fee_manager) = datum.fee_manager
@@ -983,12 +988,11 @@ validator manage(settings_policy_id: PolicyId) {
           StablePoolDatum {
             ..datum,
             protocol_fees: (
-              protocol_fees.1st + lovelace_diff,
-              protocol_fees.2nd,
-              protocol_fees.3rd,
+              datum.protocol_fees.1st + lovelace_diff,
+              datum.protocol_fees.2nd,
+              datum.protocol_fees.3rd,
             ),
             lp_fee_basis_points: lp_fee_basis_points,
-            protocol_fee_basis_points: protocol_fee_basis_points,
             fee_manager: output_fee_manager,
           }
         pool_output_datum == expected_datum
@@ -1010,7 +1014,6 @@ validator manage(settings_policy_id: PolicyId) {
         // We need the pool output to check that only the fees or fee manager are updated
         let StablePoolDatum {
           assets,
-          protocol_fees,
           linear_amplification,
           sum_invariant,
           linear_amplification_manager: output_linear_amplification_manager,
@@ -1020,7 +1023,7 @@ validator manage(settings_policy_id: PolicyId) {
         let
           pool_quantity_a,
           pool_quantity_b,
-        <- pool_input_to_asset_reserves(assets, protocol_fees, pool_input)
+        <- pool_input_to_asset_reserves(assets, datum.protocol_fees, pool_input)
 
         expect
           liquidity_invariant(
@@ -1048,9 +1051,9 @@ validator manage(settings_policy_id: PolicyId) {
           StablePoolDatum {
             ..datum,
             protocol_fees: (
-              protocol_fees.1st + lovelace_diff,
-              protocol_fees.2nd,
-              protocol_fees.3rd,
+              datum.protocol_fees.1st + lovelace_diff,
+              datum.protocol_fees.2nd,
+              datum.protocol_fees.3rd,
             ),
             linear_amplification: linear_amplification,
             sum_invariant: sum_invariant,

validators/tests/pool.ak

@@ -15,7 +15,7 @@ use cardano/transaction.{
   Transaction, Withdraw,
 }
 use pool as pool_validator
-use shared.{get_D, pool_lp_name}
+use shared.{calc_precision, get_D, pool_lp_name}
 use sundae/multisig
 use tests/constants
 use tests/examples/ex_settings.{
@@ -36,7 +36,9 @@ use types/pool.{
   BurnPool, CreatePool, Manage, PoolMintRedeemer, PoolScoop, StablePoolDatum,
   UpdatePoolFees, WithdrawFees,
 }
-use types/settings.{SettingsDatum, settings_nft_name}
+use types/settings.{
+  SettingsDatum, settings_nft_name,
+}
 
 type ScoopTestOptions {
   edit_order_1_in_value: Option<Value>,
@@ -381,7 +383,7 @@ test scooper_not_in_settings() fail {
             simple_fee: 2_500_000,
             strategy_fee: 5_000_000,
             pool_creation_fee: 0,
-            extensions: Void,
+            extensions: [],
           },
         ),
       ),
@@ -1345,6 +1347,7 @@ fn mint_test_modify(
   let reserve_b = 1_000_000_000
   let linear_amplification = 10
   let sum_invariant = get_D(linear_amplification, reserve_a, reserve_b)
+  let initial_lp = sum_invariant / calc_precision
   let inline_pool_datum =
     modify_datum(
       InlineDatum(
@@ -1354,7 +1357,7 @@ fn mint_test_modify(
             (ada_policy_id, ada_asset_name),
             (constants.rberry_policy, constants.rberry_asset_name),
           ),
-          circulating_lp: sum_invariant,
+          circulating_lp: initial_lp,
           lp_fee_basis_points: (5, 5),
           protocol_fee_basis_points: (0, 0),
           fee_manager: None,
@@ -1384,7 +1387,7 @@ fn mint_test_modify(
     assets.from_asset(
       constants.pool_script_hash,
       pool_lp_name(pool_id),
-      sum_invariant,
+      initial_lp,
     )
       |> assets.merge(assets.from_lovelace(2_000_000))
   let lp_output =
@@ -1424,7 +1427,7 @@ fn mint_test_modify(
             |> assets.add(
                 constants.pool_script_hash,
                 new_pool_lp_token,
-                sum_invariant,
+                initial_lp,
               )
             |> assets.add(constants.pool_script_hash, new_pool_nft_token, 1)
             |> assets.add(constants.pool_script_hash, new_pool_ref_token, 1),

validators/tests/pool.manage.ak

@@ -388,7 +388,7 @@ fn scenario_settings_input_baseline(
           simple_fee: 2_500_000,
           strategy_fee: 5_000_000,
           pool_creation_fee: 0,
-          extensions: Void,
+          extensions: [],
         }
       },
     )

validators/tests/settings.ak

@@ -92,7 +92,7 @@ fn mk_valid_settings_datum(scoopers: List<ByteArray>) -> SettingsDatum {
     simple_fee: 2_500_000,
     strategy_fee: 5_000_000,
     pool_creation_fee: 0,
-    extensions: Void,
+    extensions: [],
   }
 }