Files
trade-drift-dlob/src/utils/tests/auctionParams.test.ts
2025-07-15 13:06:42 -07:00

695 lines
22 KiB
TypeScript

import { describe, it, expect, jest, beforeEach } from '@jest/globals';
import {
BN,
PositionDirection,
MarketType,
ZERO,
QUOTE_PRECISION,
PRICE_PRECISION,
BASE_PRECISION,
} from '@drift-labs/sdk';
import {
createMarketBasedAuctionParams,
mapToMarketOrderParams,
formatAuctionParamsForResponse,
} from '../utils';
describe('Auction Parameters Functions', () => {
describe('createMarketBasedAuctionParams', () => {
it('should apply market-based logic for major PERP markets (0, 1, 2)', () => {
[0, 1, 2].forEach((marketIndex) => {
const args = {
marketIndex,
marketType: 'perp' as any,
direction: 'long' as any,
amount: '100',
assetType: 'base' as any,
auctionStartPriceOffsetFrom: 'marketBased' as any,
auctionStartPriceOffset: 'marketBased' as any,
};
const result = createMarketBasedAuctionParams(args);
expect(result.auctionStartPriceOffsetFrom).toBe('mark');
expect(result.auctionStartPriceOffset).toBe(0);
});
});
it('should apply market-based logic for minor PERP markets (>2)', () => {
[3, 4, 5, 10].forEach((marketIndex) => {
const args = {
marketIndex,
marketType: 'perp' as any,
direction: 'long' as any,
amount: '100',
assetType: 'base' as any,
auctionStartPriceOffsetFrom: 'marketBased' as any,
auctionStartPriceOffset: 'marketBased' as any,
};
const result = createMarketBasedAuctionParams(args);
expect(result.auctionStartPriceOffsetFrom).toBe('bestOffer');
expect(result.auctionStartPriceOffset).toBe(-0.1);
});
});
it('should apply market-based logic for SPOT markets when "marketBased" is passed', () => {
[0, 1, 2, 5, 10].forEach((marketIndex) => {
const args = {
marketIndex,
marketType: 'spot' as any,
direction: 'long' as any,
amount: '100',
assetType: 'base' as any,
auctionStartPriceOffsetFrom: 'marketBased' as any,
auctionStartPriceOffset: 'marketBased' as any,
};
const result = createMarketBasedAuctionParams(args);
expect(result.auctionStartPriceOffsetFrom).toBe('bestOffer');
expect(result.auctionStartPriceOffset).toBe(-0.1);
});
});
it('should treat undefined values the same as "marketBased"', () => {
const majorMarketArgs = {
marketIndex: 0,
marketType: 'perp' as any,
direction: 'long' as any,
amount: '100',
assetType: 'base' as any,
// auctionStartPriceOffsetFrom and auctionStartPriceOffset are undefined
};
const minorMarketArgs = {
marketIndex: 5,
marketType: 'perp' as any,
direction: 'long' as any,
amount: '100',
assetType: 'base' as any,
// auctionStartPriceOffsetFrom and auctionStartPriceOffset are undefined
};
const majorResult = createMarketBasedAuctionParams(majorMarketArgs);
const minorResult = createMarketBasedAuctionParams(minorMarketArgs);
// Major market behavior
expect(majorResult.auctionStartPriceOffsetFrom).toBe('mark');
expect(majorResult.auctionStartPriceOffset).toBe(0);
// Minor market behavior
expect(minorResult.auctionStartPriceOffsetFrom).toBe('bestOffer');
expect(minorResult.auctionStartPriceOffset).toBe(-0.1);
});
it('should preserve explicit values over market-based defaults', () => {
const args = {
marketIndex: 0, // Major market
marketType: 'perp' as any,
direction: 'long' as any,
amount: '100',
assetType: 'base' as any,
auctionStartPriceOffsetFrom: 'oracle' as any,
auctionStartPriceOffset: 0.5,
auctionEndPriceOffset: 0.2,
auctionDuration: 45,
};
const result = createMarketBasedAuctionParams(args);
// Should use explicit values, not market-based defaults
expect(result.auctionStartPriceOffsetFrom).toBe('oracle');
expect(result.auctionStartPriceOffset).toBe(0.5);
expect(result.auctionEndPriceOffset).toBe(0.2);
expect(result.auctionDuration).toBe(45);
});
it('should handle mixed explicit and market-based values', () => {
const args = {
marketIndex: 0,
marketType: 'perp' as any,
direction: 'long' as any,
amount: '100',
assetType: 'base' as any,
auctionStartPriceOffsetFrom: 'oracle' as any, // explicit
auctionStartPriceOffset: 'marketBased' as any, // market-based
auctionDuration: 45, // explicit
};
const result = createMarketBasedAuctionParams(args);
expect(result.auctionStartPriceOffsetFrom).toBe('oracle'); // explicit value
expect(result.auctionStartPriceOffset).toBe(0); // market-based for major market
expect(result.auctionDuration).toBe(45); // explicit value
});
it('should include all original parameters in the result', () => {
const args = {
marketIndex: 3,
marketType: 'perp' as any,
direction: 'short' as any,
amount: '250',
assetType: 'quote' as any,
reduceOnly: true,
allowInfSlippage: false,
slippageTolerance: 0.02,
userOrderId: 12345,
auctionStartPriceOffsetFrom: 'marketBased' as any,
auctionStartPriceOffset: 'marketBased' as any,
};
const result = createMarketBasedAuctionParams(args);
// Should preserve all original parameters
expect(result.marketIndex).toBe(3);
expect(result.marketType).toBe('perp');
expect(result.direction).toBe('short');
expect(result.amount).toBe('250');
expect(result.assetType).toBe('quote');
expect(result.reduceOnly).toBe(true);
expect(result.allowInfSlippage).toBe(false);
expect(result.slippageTolerance).toBe(0.02);
expect(result.userOrderId).toBe(12345);
// Should apply market-based logic
expect(result.auctionStartPriceOffsetFrom).toBe('bestOffer');
expect(result.auctionStartPriceOffset).toBe(-0.1);
});
});
describe('mapToMarketOrderParams with Mock L2 Data', () => {
const mockDriftClient = {
getOracleDataForPerpMarket: jest.fn(),
getOracleDataForSpotMarket: jest.fn(),
};
const mockFetchFromRedis = jest.fn() as any;
const mockSelectMostRecentBySlot = jest.fn() as any;
const validParams = {
marketIndex: 0,
marketType: 'perp' as any,
direction: 'long' as any,
amount: new BN(100).mul(BASE_PRECISION).toString(), // 100 in BASE_PRECISION
assetType: 'base' as any,
auctionDuration: 30,
auctionStartPriceOffset: 0,
auctionEndPriceOffset: 0.1,
auctionStartPriceOffsetFrom: 'mark' as any,
auctionEndPriceOffsetFrom: 'mark' as any,
};
beforeEach(() => {
jest.clearAllMocks();
});
it('should successfully calculate prices with mock L2 orderbook data', async () => {
const solPrice = 160; // $160 SOL price
mockDriftClient.getOracleDataForPerpMarket.mockReturnValue({
price: new BN(solPrice).mul(PRICE_PRECISION),
});
// Mock realistic L2 orderbook data
mockFetchFromRedis.mockImplementation(async (key: string) => {
if (key.includes('dlob_orderbook')) {
return {
bids: [
{ price: '159950000', size: '1000000000' }, // $159.95, 1 SOL
{ price: '159900000', size: '2000000000' }, // $159.90, 2 SOL
{ price: '159850000', size: '1500000000' }, // $159.85, 1.5 SOL
],
asks: [
{ price: '160050000', size: '1500000000' }, // $160.05, 1.5 SOL
{ price: '160100000', size: '1000000000' }, // $160.10, 1 SOL
{ price: '160150000', size: '2000000000' }, // $160.15, 2 SOL
],
};
}
return null;
});
const result = await mapToMarketOrderParams(
validParams,
mockDriftClient as any,
mockFetchFromRedis as any,
mockSelectMostRecentBySlot as any
);
expect(result.success).toBe(true);
expect(result.data).toBeDefined();
expect(result.data?.marketOrderParams).toBeDefined();
expect(result.data?.estimatedPrices).toBeDefined();
expect(result.error).toBeUndefined();
// Verify price calculations
const prices = result.data?.estimatedPrices;
expect(prices?.entryPrice.gt(ZERO)).toBe(true);
expect(prices?.bestPrice.gt(ZERO)).toBe(true);
expect(prices?.worstPrice.gt(ZERO)).toBe(true);
expect(prices?.oraclePrice.gt(ZERO)).toBe(true);
// Verify market order params structure
const marketOrderParams = result.data?.marketOrderParams;
expect(marketOrderParams?.marketType).toBe(MarketType.PERP);
expect(marketOrderParams?.direction).toBe(PositionDirection.LONG);
expect(marketOrderParams?.baseAmount).toBeDefined();
expect(marketOrderParams?.baseAmount.gt(ZERO)).toBe(true);
});
it('should handle quote-to-base conversion with realistic prices', async () => {
const solPrice = 160; // $160 SOL price
const quoteAmount = 1000; // $1,000 worth
const quoteAmountInPrecision = new BN(quoteAmount).mul(QUOTE_PRECISION); // Convert to quote precision
mockDriftClient.getOracleDataForPerpMarket.mockReturnValue({
price: new BN(solPrice).mul(PRICE_PRECISION),
});
mockFetchFromRedis.mockImplementation(async (key: string) => {
if (key.includes('dlob_orderbook')) {
return {
bids: [
{ price: '160000000', size: '1000000000' }, // $160.00, 1 SOL
],
asks: [
{ price: '160000000', size: '1000000000' }, // $160.00, 1 SOL
],
};
}
return null;
});
const quoteParams = {
...validParams,
amount: quoteAmountInPrecision.toString(),
assetType: 'quote' as any,
};
const result = await mapToMarketOrderParams(
quoteParams,
mockDriftClient as any,
mockFetchFromRedis as any,
mockSelectMostRecentBySlot as any
);
expect(result.success).toBe(true);
// With $1,000 at $160 per SOL, we should get ~6.25 SOL
const baseAmount = result.data?.marketOrderParams.baseAmount;
expect(baseAmount).toBeDefined();
expect(baseAmount.gt(ZERO)).toBe(true);
// Calculate expected base amount: (amount * BASE_PRECISION) / entryPrice
const expectedBaseAmount = quoteAmountInPrecision
.mul(BASE_PRECISION)
.div(result.data?.estimatedPrices.entryPrice);
expect(baseAmount.toString()).toBe(expectedBaseAmount.toString());
});
it('should handle different market types correctly', async () => {
const usdcPrice = 1; // $1 USDC price
mockDriftClient.getOracleDataForSpotMarket.mockReturnValue({
price: new BN(usdcPrice).mul(PRICE_PRECISION),
});
mockFetchFromRedis.mockImplementation(async (key: string) => {
if (key.includes('dlob_orderbook')) {
return {
bids: [
{ price: '1000000', size: '10000000000' }, // $1.00, 10,000 USDC
],
asks: [
{ price: '1000000', size: '10000000000' }, // $1.00, 10,000 USDC
],
};
}
return null;
});
const spotParams = {
...validParams,
marketType: 'spot' as any,
};
const result = await mapToMarketOrderParams(
spotParams,
mockDriftClient as any,
mockFetchFromRedis as any,
mockSelectMostRecentBySlot as any
);
expect(result.success).toBe(true);
expect(result.data?.marketOrderParams.marketType).toBe(MarketType.SPOT);
expect(result.data?.estimatedPrices.entryPrice.gt(ZERO)).toBe(true);
});
it('should handle different directions correctly', async () => {
const solPrice = 160; // $160 SOL price
mockDriftClient.getOracleDataForPerpMarket.mockReturnValue({
price: new BN(solPrice).mul(PRICE_PRECISION),
});
mockFetchFromRedis.mockImplementation(async (key: string) => {
if (key.includes('dlob_orderbook')) {
return {
bids: [
{ price: '159950000', size: '1000000000' }, // $159.95, 1 SOL
],
asks: [
{ price: '160050000', size: '1000000000' }, // $160.05, 1 SOL
],
};
}
return null;
});
const shortParams = {
...validParams,
direction: 'short' as any,
};
const result = await mapToMarketOrderParams(
shortParams,
mockDriftClient as any,
mockFetchFromRedis as any,
mockSelectMostRecentBySlot as any
);
expect(result.success).toBe(true);
expect(result.data?.marketOrderParams.direction).toBe(
PositionDirection.SHORT
);
expect(result.data?.estimatedPrices.entryPrice.gt(ZERO)).toBe(true);
});
it('should handle various order sizes with L2 depth', async () => {
const solPrice = 160; // $160 SOL price
mockDriftClient.getOracleDataForPerpMarket.mockReturnValue({
price: new BN(solPrice).mul(PRICE_PRECISION),
});
// Mock L2 with multiple levels of depth
mockFetchFromRedis.mockImplementation(async (key: string) => {
if (key.includes('dlob_orderbook')) {
return {
bids: [
{ price: '159950000', size: '500000000' }, // $159.95, 0.5 SOL
{ price: '159900000', size: '1000000000' }, // $159.90, 1 SOL
{ price: '159850000', size: '2000000000' }, // $159.85, 2 SOL
],
asks: [
{ price: '160050000', size: '500000000' }, // $160.05, 0.5 SOL
{ price: '160100000', size: '1000000000' }, // $160.10, 1 SOL
{ price: '160150000', size: '2000000000' }, // $160.15, 2 SOL
],
};
}
return null;
});
// Test small order
const smallOrderParams = {
...validParams,
amount: new BN(10).mul(BASE_PRECISION).toString(), // 10 in BASE_PRECISION
};
const smallResult = await mapToMarketOrderParams(
smallOrderParams,
mockDriftClient as any,
mockFetchFromRedis as any,
mockSelectMostRecentBySlot as any
);
expect(smallResult.success).toBe(true);
expect(smallResult.data?.estimatedPrices.entryPrice.gt(ZERO)).toBe(true);
// Test large order
const largeOrderParams = {
...validParams,
amount: new BN(1000).mul(BASE_PRECISION).toString(), // 1000 in BASE_PRECISION
};
const largeResult = await mapToMarketOrderParams(
largeOrderParams,
mockDriftClient as any,
mockFetchFromRedis as any,
mockSelectMostRecentBySlot as any
);
expect(largeResult.success).toBe(true);
expect(largeResult.data?.estimatedPrices.entryPrice.gt(ZERO)).toBe(true);
// Large orders should have higher price impact
expect(
largeResult.data?.estimatedPrices.priceImpact.gte(
smallResult.data?.estimatedPrices.priceImpact
)
).toBe(true);
});
it('should handle zero oracle price scenario', async () => {
mockDriftClient.getOracleDataForPerpMarket.mockReturnValue({
price: ZERO,
});
mockFetchFromRedis.mockImplementation(async (key: string) => {
if (key.includes('dlob_orderbook')) {
return {
bids: [
{ price: '159950000', size: '1000000000' }, // $159.95, 1 SOL
],
asks: [
{ price: '160050000', size: '1000000000' }, // $160.05, 1 SOL
],
};
}
return null;
});
const result = await mapToMarketOrderParams(
validParams,
mockDriftClient as any,
mockFetchFromRedis as any,
mockSelectMostRecentBySlot as any
);
expect(result.success).toBe(true);
expect(result.data).toBeDefined();
expect(result.data?.estimatedPrices.oraclePrice.eq(ZERO)).toBe(true);
// Entry price should be calculated from L2 data even if oracle price is zero
expect(result.data?.estimatedPrices.entryPrice).toBeDefined();
});
});
describe('formatAuctionParamsForResponse', () => {
it('should format BN values to strings', () => {
const mockAuctionParams = {
auctionStartPriceOffsetFrom: 'mark',
auctionStartPriceOffset: new BN(0),
auctionEndPriceOffsetFrom: 'best',
auctionEndPriceOffset: new BN(100000), // 0.1 with PRICE_PRECISION (1e6)
auctionDuration: 30,
slippageTolerance: 0.05,
additionalEndPriceBuffer: new BN(50000), // 0.05 with PRICE_PRECISION
userOrderId: 123,
isOracleOrder: false,
};
const result = formatAuctionParamsForResponse(mockAuctionParams);
expect(result.auctionStartPriceOffsetFrom).toBe('mark');
expect(result.auctionStartPriceOffset).toBe('0');
expect(result.auctionEndPriceOffsetFrom).toBe('best');
expect(result.auctionEndPriceOffset).toBe('100000');
expect(result.auctionDuration).toBe(30);
expect(result.slippageTolerance).toBe(0.05);
expect(result.additionalEndPriceBuffer).toBe('50000');
expect(result.userOrderId).toBe(123);
expect(result.isOracleOrder).toBe(false);
});
it('should handle different BN values correctly', () => {
const mockAuctionParams = {
auctionStartPriceOffsetFrom: 'oracle',
auctionStartPriceOffset: new BN(250000), // 0.25 with PRICE_PRECISION
auctionEndPriceOffsetFrom: 'worst',
auctionEndPriceOffset: new BN(1500000), // 1.5 with PRICE_PRECISION
auctionDuration: 60,
slippageTolerance: 0.1,
additionalEndPriceBuffer: new BN(0), // 0 with PRICE_PRECISION
userOrderId: 456,
isOracleOrder: true,
};
const result = formatAuctionParamsForResponse(mockAuctionParams);
expect(result.auctionStartPriceOffset).toBe('250000');
expect(result.auctionEndPriceOffset).toBe('1500000');
expect(result.additionalEndPriceBuffer).toBe('0');
expect(result.isOracleOrder).toBe(true);
});
it('should handle undefined/null values gracefully', () => {
const mockAuctionParams = {
auctionStartPriceOffsetFrom: 'mark',
auctionStartPriceOffset: new BN(0),
auctionEndPriceOffsetFrom: 'mark',
auctionEndPriceOffset: new BN(100000),
auctionDuration: 30,
slippageTolerance: undefined,
additionalEndPriceBuffer: undefined,
userOrderId: undefined,
isOracleOrder: undefined,
};
const result = formatAuctionParamsForResponse(mockAuctionParams);
expect(result.auctionStartPriceOffsetFrom).toBe('mark');
expect(result.auctionStartPriceOffset).toBe('0');
expect(result.auctionEndPriceOffsetFrom).toBe('mark');
expect(result.auctionEndPriceOffset).toBe('100000');
expect(result.auctionDuration).toBe(30);
expect(result.slippageTolerance).toBeUndefined();
expect(result.additionalEndPriceBuffer).toBeUndefined();
expect(result.userOrderId).toBeUndefined();
expect(result.isOracleOrder).toBeUndefined();
});
});
describe('Business Logic Integration', () => {
it('should demonstrate complete parameter flow for different market types', () => {
const scenarios = [
{
name: 'Major PERP market with market-based params',
input: {
marketIndex: 0,
marketType: 'perp' as any,
direction: 'long' as any,
amount: new BN(100).mul(BASE_PRECISION).toString(), // 100 in BASE_PRECISION
assetType: 'base' as any,
auctionStartPriceOffsetFrom: 'marketBased' as any,
auctionStartPriceOffset: 'marketBased' as any,
},
expectedOffset: { from: 'mark', value: 0 },
},
{
name: 'Minor PERP market with market-based params',
input: {
marketIndex: 5,
marketType: 'perp' as any,
direction: 'short' as any,
amount: new BN(500).mul(QUOTE_PRECISION).toString(), // 500 in QUOTE_PRECISION
assetType: 'quote' as any,
auctionStartPriceOffsetFrom: 'marketBased' as any,
auctionStartPriceOffset: 'marketBased' as any,
},
expectedOffset: { from: 'bestOffer', value: -0.1 },
},
{
name: 'SPOT market with market-based params',
input: {
marketIndex: 2,
marketType: 'spot' as any,
direction: 'long' as any,
amount: new BN(1000).mul(BASE_PRECISION).toString(), // 1000 in BASE_PRECISION
assetType: 'base' as any,
auctionStartPriceOffsetFrom: 'marketBased' as any,
auctionStartPriceOffset: 'marketBased' as any,
},
expectedOffset: { from: 'bestOffer', value: -0.1 },
},
];
scenarios.forEach((scenario) => {
const result = createMarketBasedAuctionParams(scenario.input);
expect(result.auctionStartPriceOffsetFrom).toBe(
scenario.expectedOffset.from
);
expect(result.auctionStartPriceOffset).toBe(
scenario.expectedOffset.value
);
// Verify all original parameters are preserved
expect(result.marketIndex).toBe(scenario.input.marketIndex);
expect(result.marketType).toBe(scenario.input.marketType);
expect(result.direction).toBe(scenario.input.direction);
expect(result.amount).toBe(scenario.input.amount);
expect(result.assetType).toBe(scenario.input.assetType);
});
});
it('should handle parameter precedence correctly', () => {
// Test that explicit values always take precedence over market-based logic
const input = {
marketIndex: 0, // Major market - would normally get 'mark' and 0
marketType: 'perp' as any,
direction: 'long' as any,
amount: new BN(100).mul(BASE_PRECISION).toString(), // 100 in BASE_PRECISION
assetType: 'base' as any,
auctionStartPriceOffsetFrom: 'oracle' as any, // explicit value
auctionStartPriceOffset: 0.25, // explicit value
auctionEndPriceOffset: 0.5, // explicit value
auctionDuration: 45, // explicit value
};
const result = createMarketBasedAuctionParams(input);
// Should use explicit values, not market-based defaults
expect(result.auctionStartPriceOffsetFrom).toBe('oracle');
expect(result.auctionStartPriceOffset).toBe(0.25);
expect(result.auctionEndPriceOffset).toBe(0.5);
expect(result.auctionDuration).toBe(45);
});
it('should demonstrate end-to-end parameter formatting', () => {
// Create auction params with market-based logic
const input = {
marketIndex: 1,
marketType: 'perp' as any,
direction: 'long' as any,
amount: new BN(100).mul(BASE_PRECISION).toString(), // 100 in BASE_PRECISION
assetType: 'base' as any,
auctionStartPriceOffsetFrom: 'marketBased' as any,
auctionStartPriceOffset: 'marketBased' as any,
auctionDuration: 30,
};
const auctionParams = createMarketBasedAuctionParams(input);
// Simulate the structure that would come from deriveMarketOrderParams
const mockDerivedParams = {
auctionStartPriceOffsetFrom: auctionParams.auctionStartPriceOffsetFrom,
auctionStartPriceOffset: new BN(0), // 0 for major market
auctionEndPriceOffsetFrom: auctionParams.auctionEndPriceOffsetFrom,
auctionEndPriceOffset: new BN(100000), // 0.1 with PRICE_PRECISION
auctionDuration: auctionParams.auctionDuration,
slippageTolerance: 0.05,
additionalEndPriceBuffer: new BN(50000), // 0.05 with PRICE_PRECISION
userOrderId: 123,
isOracleOrder: true,
};
const formattedResponse =
formatAuctionParamsForResponse(mockDerivedParams);
// Verify the complete flow
expect(formattedResponse.auctionStartPriceOffsetFrom).toBe('mark'); // Market-based for major market
expect(formattedResponse.auctionStartPriceOffset).toBe('0'); // Market-based for major market
expect(formattedResponse.auctionEndPriceOffset).toBe('100000'); // Formatted from BN
expect(formattedResponse.auctionDuration).toBe(30); // Preserved from input
expect(formattedResponse.slippageTolerance).toBe(0.05); // Preserved as number
expect(formattedResponse.additionalEndPriceBuffer).toBe('50000'); // Formatted from BN
expect(formattedResponse.userOrderId).toBe(123); // Preserved as number
expect(formattedResponse.isOracleOrder).toBe(true); // Preserved as boolean
});
});
});