OrderBook: market maker network fee (#762)

Signed-off-by: Mikhail Tagirov <[email protected]>

pallets/order-book/src/fee_calculator.rs

@@ -0,0 +1,83 @@
+// This file is part of the SORA network and Polkaswap app.
+
+// Copyright (c) 2020, 2021, Polka Biome Ltd. All rights reserved.
+// SPDX-License-Identifier: BSD-4-Clause
+
+// Redistribution and use in source and binary forms, with or without modification,
+// are permitted provided that the following conditions are met:
+
+// Redistributions of source code must retain the above copyright notice, this list
+// of conditions and the following disclaimer.
+// Redistributions in binary form must reproduce the above copyright notice, this
+// list of conditions and the following disclaimer in the documentation and/or other
+// materials provided with the distribution.
+//
+// All advertising materials mentioning features or use of this software must display
+// the following acknowledgement: This product includes software developed by Polka Biome
+// Ltd., SORA, and Polkaswap.
+//
+// Neither the name of the Polka Biome Ltd. nor the names of its contributors may be used
+// to endorse or promote products derived from this software without specific prior written permission.
+
+// THIS SOFTWARE IS PROVIDED BY Polka Biome Ltd. AS IS AND ANY EXPRESS OR IMPLIED WARRANTIES,
+// INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR
+// A PARTICULAR PURPOSE ARE DISCLAIMED. IN NO EVENT SHALL Polka Biome Ltd. BE LIABLE FOR ANY
+// DIRECT, INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES (INCLUDING,
+// BUT NOT LIMITED TO, PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES; LOSS OF USE, DATA, OR PROFITS;
+// OR BUSINESS INTERRUPTION) HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY, WHETHER IN CONTRACT,
+// STRICT LIABILITY, OR TORT (INCLUDING NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY OUT OF THE
+// USE OF THIS SOFTWARE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.
+
+use crate::Config;
+use common::prelude::FixedWrapper;
+use common::Balance;
+use sp_std::marker::PhantomData;
+
+use common::prelude::constants::SMALL_FEE as BASE_FEE;
+
+/// Calculator for order book custom fees
+pub struct FeeCalculator<T: Config>(PhantomData<T>);
+
+impl<T: Config> FeeCalculator<T> {
+    /// Calculates the fee for `place_limit_order` extrinsic.
+    ///
+    /// The idea is to provide the reduced fee for market maker.
+    /// If extrinsic is successfull, user pays maximum half network fee.
+    /// If extrinsic failed, user pays full network fee.
+    ///
+    /// The actual fee contains two parts: constant and dynamic.
+    /// Dynamic part depends on limit order lifetime. The longer the lifetime, the higher the dynamic fee.
+    ///
+    /// const part = (4 / 7) * (base fee / 2)
+    /// dynamic part = (3 / 7) * (base fee / 2) * (lifetime / max_lifetime)
+    pub fn place_limit_order_fee(
+        lifetime: Option<u64>,
+        has_weight: bool,
+        is_err: bool,
+    ) -> Option<Balance> {
+        // if place_limit_order() doesn't return a weight, it means that the limit order was converted into market order and the exchange fee should be taken
+        // if some error occurred, it means we don't prvide the reduced market maker fee for this call
+        if !has_weight || is_err {
+            return Some(BASE_FEE);
+        }
+
+        let market_maker_max_fee = BASE_FEE.checked_div(2)?;
+
+        // Maximum lifetime is used if `None` was supplied
+        let Some(lifetime) = lifetime else {
+            return Some(market_maker_max_fee);
+        };
+
+        let max_lifetime: u64 = T::MAX_ORDER_LIFESPAN.try_into().ok()?;
+
+        let life_ratio = FixedWrapper::from(lifetime) / FixedWrapper::from(max_lifetime);
+
+        let const_part = (FixedWrapper::from(market_maker_max_fee) / FixedWrapper::from(7))
+            * FixedWrapper::from(4);
+        let dynamic_part = (FixedWrapper::from(market_maker_max_fee) / FixedWrapper::from(7))
+            * FixedWrapper::from(3)
+            * life_ratio;
+
+        (const_part + dynamic_part).try_into_balance().ok()
+    }
+}

pallets/order-book/src/lib.rs

@@ -66,6 +66,7 @@ mod tests;
 mod benchmarking;
 
 pub mod cache_data_layer;
+pub mod fee_calculator;
 mod limit_order;
 mod market_order;
 mod order_book;
@@ -1093,7 +1094,8 @@ impl<T: Config> LiquiditySource<T::DEXId, T::AccountId, T::AssetId, Balance, Dis
 
         ensure!(deal_info.is_valid(), Error::<T>::PriceCalculationFailed);
 
-        let fee = 0; // todo (m.tagirov)
+        // order-book doesn't take fee
+        let fee = Balance::zero();
 
         match amount {
             QuoteAmount::WithDesiredInput { .. } => Ok((
@@ -1161,7 +1163,8 @@ impl<T: Config> LiquiditySource<T::DEXId, T::AccountId, T::AssetId, Balance, Dis
         let (input_amount, output_amount, executed_orders_count) =
             order_book.execute_market_order(market_order, &mut data)?;
 
-        let fee = 0; // todo (m.tagirov)
+        // order-book doesn't take fee
+        let fee = Balance::zero();
 
         let result = match desired_amount {
             SwapAmount::WithDesiredInput { min_amount_out, .. } => {
@@ -1277,7 +1280,8 @@ impl<T: Config> LiquiditySource<T::DEXId, T::AccountId, T::AssetId, Balance, Dis
             Error::<T>::InvalidOrderAmount
         );
 
-        let fee = 0; // todo (m.tagirov)
+        // order-book doesn't take fee
+        let fee = Balance::zero();
 
         Ok(SwapOutcome::new(*target_amount.balance(), fee))
     }

pallets/order-book/src/tests/fee_calculator.rs

@@ -0,0 +1,112 @@
+// This file is part of the SORA network and Polkaswap app.
+
+// Copyright (c) 2020, 2021, Polka Biome Ltd. All rights reserved.
+// SPDX-License-Identifier: BSD-4-Clause
+
+// Redistribution and use in source and binary forms, with or without modification,
+// are permitted provided that the following conditions are met:
+
+// Redistributions of source code must retain the above copyright notice, this list
+// of conditions and the following disclaimer.
+// Redistributions in binary form must reproduce the above copyright notice, this
+// list of conditions and the following disclaimer in the documentation and/or other
+// materials provided with the distribution.
+//
+// All advertising materials mentioning features or use of this software must display
+// the following acknowledgement: This product includes software developed by Polka Biome
+// Ltd., SORA, and Polkaswap.
+//
+// Neither the name of the Polka Biome Ltd. nor the names of its contributors may be used
+// to endorse or promote products derived from this software without specific prior written permission.
+
+// THIS SOFTWARE IS PROVIDED BY Polka Biome Ltd. AS IS AND ANY EXPRESS OR IMPLIED WARRANTIES,
+// INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR
+// A PARTICULAR PURPOSE ARE DISCLAIMED. IN NO EVENT SHALL Polka Biome Ltd. BE LIABLE FOR ANY
+// DIRECT, INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES (INCLUDING,
+// BUT NOT LIMITED TO, PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES; LOSS OF USE, DATA, OR PROFITS;
+// OR BUSINESS INTERRUPTION) HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY, WHETHER IN CONTRACT,
+// STRICT LIABILITY, OR TORT (INCLUDING NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY OUT OF THE
+// USE OF THIS SOFTWARE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.
+
+#![cfg(feature = "wip")] // order-book
+
+use common::balance;
+use common::prelude::constants::SMALL_FEE;
+use framenode_runtime::order_book::fee_calculator::FeeCalculator;
+use framenode_runtime::order_book::Config;
+use framenode_runtime::Runtime;
+
+#[test]
+fn should_calculate_place_limit_order_fee() {
+    let max_lifetime = <Runtime as Config>::MAX_ORDER_LIFESPAN;
+
+    assert_eq!(
+        FeeCalculator::<Runtime>::place_limit_order_fee(Some(0), true, false).unwrap(),
+        balance!(0.0002)
+    );
+
+    assert_eq!(
+        FeeCalculator::<Runtime>::place_limit_order_fee(Some(max_lifetime / 10), true, false)
+            .unwrap(),
+        balance!(0.000215)
+    );
+
+    assert_eq!(
+        FeeCalculator::<Runtime>::place_limit_order_fee(Some(max_lifetime / 5), true, false)
+            .unwrap(),
+        balance!(0.00023)
+    );
+
+    assert_eq!(
+        FeeCalculator::<Runtime>::place_limit_order_fee(Some(max_lifetime / 2), true, false)
+            .unwrap(),
+        balance!(0.000275)
+    );
+
+    assert_eq!(
+        FeeCalculator::<Runtime>::place_limit_order_fee(Some(max_lifetime), true, false).unwrap(),
+        SMALL_FEE / 2
+    );
+}
+
+#[test]
+fn should_calculate_place_limit_order_fee_without_weight() {
+    assert_eq!(
+        FeeCalculator::<Runtime>::place_limit_order_fee(Some(1000), false, false).unwrap(),
+        SMALL_FEE
+    );
+    assert_eq!(
+        FeeCalculator::<Runtime>::place_limit_order_fee(Some(0), false, false).unwrap(),
+        SMALL_FEE
+    );
+    assert_eq!(
+        FeeCalculator::<Runtime>::place_limit_order_fee(Some(1000000000000000), false, false)
+            .unwrap(),
+        SMALL_FEE
+    );
+    assert_eq!(
+        FeeCalculator::<Runtime>::place_limit_order_fee(None, false, false).unwrap(),
+        SMALL_FEE
+    );
+}
+
+#[test]
+fn should_calculate_place_limit_order_fee_with_error() {
+    assert_eq!(
+        FeeCalculator::<Runtime>::place_limit_order_fee(Some(1000), true, true).unwrap(),
+        SMALL_FEE
+    );
+    assert_eq!(
+        FeeCalculator::<Runtime>::place_limit_order_fee(Some(0), true, true).unwrap(),
+        SMALL_FEE
+    );
+    assert_eq!(
+        FeeCalculator::<Runtime>::place_limit_order_fee(Some(1000000000000000), true, true)
+            .unwrap(),
+        SMALL_FEE
+    );
+    assert_eq!(
+        FeeCalculator::<Runtime>::place_limit_order_fee(None, true, true).unwrap(),
+        SMALL_FEE
+    );
+}

pallets/order-book/src/tests/mod.rs

@@ -30,6 +30,7 @@
 
 mod data_layer;
 mod extrinsics;
+mod fee_calculator;
 mod order_book;
 mod orders;
 mod pallet;

pallets/order-book/src/tests/pallet.rs

@@ -1120,7 +1120,6 @@ fn should_quote() {
             SwapOutcome::new(balance!(251.66326).into(), 0)
         );
 
-        // todo (m.tagirov) remake when fee introduced
         // with fee
         assert_eq!(
             OrderBookPallet::quote(
@@ -1390,7 +1389,6 @@ fn should_quote_without_impact() {
             SwapOutcome::new(balance!(250).into(), 0)
         );
 
-        // todo (m.tagirov) remake when fee introduced
         // with fee
         assert_eq!(
             OrderBookPallet::quote_without_impact(

runtime/src/migrations.rs

@@ -1,3 +1,33 @@
+// This file is part of the SORA network and Polkaswap app.
+
+// Copyright (c) 2020, 2021, Polka Biome Ltd. All rights reserved.
+// SPDX-License-Identifier: BSD-4-Clause
+
+// Redistribution and use in source and binary forms, with or without modification,
+// are permitted provided that the following conditions are met:
+
+// Redistributions of source code must retain the above copyright notice, this list
+// of conditions and the following disclaimer.
+// Redistributions in binary form must reproduce the above copyright notice, this
+// list of conditions and the following disclaimer in the documentation and/or other
+// materials provided with the distribution.
+//
+// All advertising materials mentioning features or use of this software must display
+// the following acknowledgement: This product includes software developed by Polka Biome
+// Ltd., SORA, and Polkaswap.
+//
+// Neither the name of the Polka Biome Ltd. nor the names of its contributors may be used
+// to endorse or promote products derived from this software without specific prior written permission.
+
+// THIS SOFTWARE IS PROVIDED BY Polka Biome Ltd. AS IS AND ANY EXPRESS OR IMPLIED WARRANTIES,
+// INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR
+// A PARTICULAR PURPOSE ARE DISCLAIMED. IN NO EVENT SHALL Polka Biome Ltd. BE LIABLE FOR ANY
+// DIRECT, INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES (INCLUDING,
+// BUT NOT LIMITED TO, PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES; LOSS OF USE, DATA, OR PROFITS;
+// OR BUSINESS INTERRUPTION) HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY, WHETHER IN CONTRACT,
+// STRICT LIABILITY, OR TORT (INCLUDING NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY OUT OF THE
+// USE OF THIS SOFTWARE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.
+
 use crate::*;
 use bridge_types::GenericNetworkId;
 use sp_runtime::traits::Zero;

runtime/src/mock.rs

@@ -1,3 +1,33 @@
+// This file is part of the SORA network and Polkaswap app.
+
+// Copyright (c) 2020, 2021, Polka Biome Ltd. All rights reserved.
+// SPDX-License-Identifier: BSD-4-Clause
+
+// Redistribution and use in source and binary forms, with or without modification,
+// are permitted provided that the following conditions are met:
+
+// Redistributions of source code must retain the above copyright notice, this list
+// of conditions and the following disclaimer.
+// Redistributions in binary form must reproduce the above copyright notice, this
+// list of conditions and the following disclaimer in the documentation and/or other
+// materials provided with the distribution.
+//
+// All advertising materials mentioning features or use of this software must display
+// the following acknowledgement: This product includes software developed by Polka Biome
+// Ltd., SORA, and Polkaswap.
+//
+// Neither the name of the Polka Biome Ltd. nor the names of its contributors may be used
+// to endorse or promote products derived from this software without specific prior written permission.
+
+// THIS SOFTWARE IS PROVIDED BY Polka Biome Ltd. AS IS AND ANY EXPRESS OR IMPLIED WARRANTIES,
+// INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR
+// A PARTICULAR PURPOSE ARE DISCLAIMED. IN NO EVENT SHALL Polka Biome Ltd. BE LIABLE FOR ANY
+// DIRECT, INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES (INCLUDING,
+// BUT NOT LIMITED TO, PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES; LOSS OF USE, DATA, OR PROFITS;
+// OR BUSINESS INTERRUPTION) HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY, WHETHER IN CONTRACT,
+// STRICT LIABILITY, OR TORT (INCLUDING NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY OUT OF THE
+// USE OF THIS SOFTWARE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.
+
 use common::mock::alice;
 use common::PriceVariant;
 use price_tools::AVG_BLOCK_SPAN;