Liquidation Verification #12

m30m · 2024-02-04T20:32:14Z

Implement multiple separate logics for verifying liquidation opportunities and bids:

Remove stale opportunities (older than 60 seconds)
Try to simulate the opportunities via token spoofing upon submission and inside a verification loop
A single bidder can not bid multiple times on a single opportunity

The first 30 commits of this PR are irrelevant and they are here because there were squashed in the other PR when merged to main.

…actual pyth contract

vault monitor needs to include value and WETH if necessary searcher uses the new endpoint for bidding

Now we run a separate loop to keep the liq opportunities valid. This happens in 2 ways: - We remove opportunities that are more than 60 seconds old - We remove opportunities that fail our liquidation simulation We also verify the opportunities before saving them

…nity

anihamde · 2024-02-05T11:23:34Z

auction-server/src/api/marketplace.rs


    if liquidation.id != opportunity_bid.opportunity_id {
        return Err(RestError::BadParameters(
            "Invalid opportunity_id".to_string(),
        ));
    }

+    if liquidation.bidders.contains(&opportunity_bid.liquidator) {


should desired behavior be failure? why not just update the bid of the liquidator? e.g. someone sends a bid and wants to update it with a higher or lower bid due to price movements?

I agree, this should be implemented on the client side if necessary. I will remove it when moved to the other side.

anihamde · 2024-02-05T11:35:30Z

auction-server/src/liquidation_adapter.rs

+/// Simulation is done by spoofing the balances and allowances of a random liquidator
+/// Returns Ok(()) if the simulation is successful or if the tokens cannot be spoofed
+pub async fn verify_opportunity(
+    opportunity: VerifiedLiquidationOpportunity,


some of this code could be reused for verifying submissions by searchers to auction server later on, can we separate the part of this that does the simulation from the part that does the setup of the fake wallet, calldata, and signatures and the spoofing?

I am not sure which part is reusable there. Most of the logic here is for the liquidation adapter contract but on the lower level, we don't have that contract and we directly simulate against PER without spoofing.

i think just lines 180 onward are the simulation part, everything before is spoofing. i think there's a fair argument to keep all this as is and just recreate another separate simulation function for the searcher submission side. but that function may look exactly like lines 180 down, so may be good to consolidate the simulation and error handling in one function.

I refactored a bit and extracted out the duplicate logic.

anihamde · 2024-02-05T11:54:47Z

auction-server/src/token_spoof.rs

+) -> anyhow::Result<U256> {
+    let contract = ERC20::new(token, client.clone());
+    let fake_owner = LocalWallet::new(&mut rand::thread_rng());
+    for balance_slot in 0..32 {


i read a bit on finding the storage slot for non-null entries in mappings in solidity, but i'm still confused by the iteration here... can you add some more comments about what's going on here? e.g. why the iteration from 0 to 32

anihamde · 2024-02-05T11:56:45Z

auction-server/src/liquidation_adapter.rs

+            }
+        };
+        match spoof_info {
+            SpoofInfo::UnableToSpoof => return Ok(()), // unable to spoof, so we can't verify


should we approve if we can't verify? not sure either way, there are probably tradeoffs

we know for sure that we can't spoof some important tokens. I don't think we want to limit our selves here. The main benefit of this is easier debugging on the protocol side.

anihamde · 2024-02-05T12:09:40Z

auction-server/src/liquidation_adapter.rs

+) -> Result<()> {
+    let current_time = SystemTime::now().duration_since(UNIX_EPOCH)?.as_secs() as UnixTimestamp;
+
+    if current_time - opportunity.creation_time > MAX_STALE_OPPORTUNITY_SECS {


why does this check matter? as long as the simulation works, isn't that sufficient to know the opportunity is still valid? there could be a more fresh Opportunity, but once that's created and submitted we can just update it in the store instead of removing ones that are old here

I agree in the case that we were able to verify, there is no need to remove but otherwise we may store garbage indefinitely.

anihamde · 2024-02-05T12:14:42Z

auction-server/src/liquidation_adapter.rs

+    while !SHOULD_EXIT.load(Ordering::Acquire) {
+        let all_opportunities = store.liquidation_store.opportunities.read().await.clone();
+        for (permission_key, opportunity) in all_opportunities.iter() {
+            let should_remove = verify_with_store(opportunity.clone(), &store).await;


better variable name here may be stillValid? since ok response from verify_with_store indicates shouldn't remove

anihamde · 2024-02-06T15:25:02Z

auction-server/src/liquidation_adapter.rs

+/// Simulation is done by spoofing the balances and allowances of a random liquidator
+/// Returns Ok(()) if the simulation is successful or if the tokens cannot be spoofed
+pub async fn verify_opportunity(
+    opportunity: VerifiedLiquidationOpportunity,


i think just lines 180 onward are the simulation part, everything before is spoofing. i think there's a fair argument to keep all this as is and just recreate another separate simulation function for the searcher submission side. but that function may look exactly like lines 180 down, so may be good to consolidate the simulation and error handling in one function.

anihamde · 2024-02-06T15:34:04Z

auction-server/src/liquidation_adapter.rs

+            let current_time =
+                SystemTime::now().duration_since(UNIX_EPOCH)?.as_secs() as UnixTimestamp;
+            if current_time - opportunity.creation_time > MAX_STALE_OPPORTUNITY_SECS {
+                Err(anyhow!("Opportunity is stale and unverifiable"))


i like the check here

m30m added 30 commits January 23, 2024 11:34

Fix comment

32871f1

Initialize project

95111ff

First version of the simulator

dbee4dc

Add to pre-commit formatting

bbce0ee

Refactor setup script

c6295bf

Add setupTestnet script

aa5d4be

Small changes to TokenVault contract for easier integration with the …

41e5fff

…actual pyth contract

Use price feed id as the name of WETH contract for consistency

f481b5f

Update docs

20cb96a

Update .gitignore

1087605

Update token vault searcher

80cef21

Add value field to Adapter structs and logic

2efc4eb

Add new command to setup an already funded searcher account

a7bb735

Clean up errros and add signatures

d7b2c21

Implement bid on opportunity endpoint

6d43b0b

Fix on searcher and vault monitor

c843126

vault monitor needs to include value and WETH if necessary searcher uses the new endpoint for bidding

Setup poetry and replace autopep8 with black

f4ff294

Rename beacon server to liquidation server

de0a858

Fix ci for poetry

3bb95dd

Fix CI part 2

5894023

Update poetry version

139c010

Adjust requirements

596054d

Adjust versioning again

326975e

Final fix

2869b88

Get hermes endpoint as parameter in simulator

5903deb

Setup the new account from scratch

fb20273

Add interval option for simulator to create vaults periodically

0e4d3e0

Improve logging on per_sdk

8d13521

Reduce ETH amounts to be more reasonable in actual testnets

6a80dac

Correct usage of chain_id in scripts

84407e9

m30m added 10 commits February 1, 2024 17:09

Minor refactor

d3c0d07

Fix api docs

f407a48

Remove the opportunity upon sucessfull submission

dc17445

Move over documentations from the other PR

28d0a88

Do not allow multiple bids by a single liquidator on a single opportu…

17feca8

…nity

Remove useless dependency

6040dba

Merge branch 'main' into verification

67536bc

Move spoof logic to separate module

8edea62

Small docs fix

f3a8621

m30m changed the title ~~Verification~~ Liquidation Verification Feb 5, 2024

m30m added 2 commits February 5, 2024 10:05

Remove TODO

f9ca357

Small refactor

b265a8f

anihamde reviewed Feb 5, 2024

View reviewed changes

Address comments

a7b5d66

anihamde approved these changes Feb 6, 2024

View reviewed changes

Refactor evaluation logic

ceeab44

m30m merged commit a5a8b6e into main Feb 6, 2024
1 check passed

m30m deleted the verification branch February 6, 2024 16:31

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Liquidation Verification #12

Liquidation Verification #12

m30m commented Feb 4, 2024 •

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Liquidation Verification #12

Liquidation Verification #12

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m30m commented Feb 4, 2024 • edited Loading

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m30m commented Feb 4, 2024 •

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