Feat: liquidation cap and grace period timelock in recovery mode

script/upgrade/GracePeriodUpgradeTest.t.sol

@@ -0,0 +1,83 @@
+// test/upgrade/GracePeriodUpgradeTest.t.sol
+
+import { UpgradeGracePeriodLib } from "../../script/upgrade/UpgradeGracePeriod.s.sol";
+import { TroveManager } from "../../src/core/TroveManager.sol";
+import { ISatoshiPeriphery, LzSendParam } from "../../src/core/helpers/interfaces/ISatoshiPeriphery.sol";
+import { IBorrowerOperationsFacet } from "../../src/core/interfaces/IBorrowerOperationsFacet.sol";
+import { ILiquidationFacet } from "../../src/core/interfaces/ILiquidationFacet.sol";
+import { IPriceFeedAggregatorFacet } from "../../src/core/interfaces/IPriceFeedAggregatorFacet.sol";
+import { ITroveManager } from "../../src/core/interfaces/ITroveManager.sol";
+
+import { IERC20 } from "@openzeppelin/contracts/token/ERC20/IERC20.sol";
+import { Test } from "forge-std/Test.sol";
+import { console } from "forge-std/console.sol";
+
+interface IBeacon {
+    function upgradeTo(address newImplementation) external;
+    function implementation() external view returns (address);
+}
+
+contract GracePeriodUpgradeTest is Test {
+    // Base network
+    address payable constant SATOSHI_X_APP_ADDRESS = payable(0x9a3c724ee9603A7550499bE73DC743B371811dd3);
+    address payable constant OWNER_ADDRESS = payable(0xd3e87B4B76E6F8bFf454AAFc2AD3271C5b317d47);
+    address payable constant TM_BEACON_ADDRESS = payable(0xefAa8B485355066fA0993A605466eEf0ec026860);
+    IERC20 constant WETH = IERC20(0x4200000000000000000000000000000000000006);
+    ISatoshiPeriphery constant SATOSHI_PERIPHERY = ISatoshiPeriphery(0x9d9f0D9a13d3bA201003DD2e8950059d2c08D782);
+    ITroveManager constant TROVE_MANAGER = ITroveManager(0xddac7d4e228c205197FE9961865FFE20173dE56B);
+
+    function setUp() public {
+        vm.createSelectFork(vm.envString("RPC_URL_BASE"), 31_529_675);
+    }
+
+    function beforeTestSetup(bytes4 testSelector) public returns (bytes[] memory beforeTestCalldata) {
+        if (
+            testSelector == this.testFork_NormalLiquidationAfterUpgrade.selector
+                || testSelector == this.testFork_SetGracePeriod.selector
+                || testSelector == this.testFork_SyncGracePeriod.selector
+        ) {
+            beforeTestCalldata = new bytes[](1);
+            beforeTestCalldata[0] = abi.encodeWithSelector(this.testFork_UpgradeGracePeriod.selector);
+        }
+    }
+
+    function testFork_UpgradeGracePeriod() public {
+        vm.startPrank(OWNER_ADDRESS);
+
+        UpgradeGracePeriodLib.upgradeGracePeriod(SATOSHI_X_APP_ADDRESS);
+        IBeacon troveManagerBeacon = IBeacon(TM_BEACON_ADDRESS);
+        address newTroveManagerImpl = address(new TroveManager());
+        troveManagerBeacon.upgradeTo(address(newTroveManagerImpl));
+    }
+
+    function testFork_NormalLiquidationAfterUpgrade() public {
+        address user = makeAddr("user");
+        deal(address(WETH), user, 1000 ether);
+
+        vm.startPrank(user);
+
+        LzSendParam memory sendParam;
+        IBorrowerOperationsFacet(SATOSHI_X_APP_ADDRESS).setDelegateApproval(address(SATOSHI_PERIPHERY), true);
+        WETH.approve(address(SATOSHI_PERIPHERY), 1000 ether);
+        SATOSHI_PERIPHERY.openTrove(TROVE_MANAGER, 1e18, 1 ether, 2000e18, address(0), address(0), sendParam);
+
+        // ICR < MCR
+        vm.mockCall(
+            address(SATOSHI_X_APP_ADDRESS),
+            abi.encodeWithSelector(IPriceFeedAggregatorFacet.fetchPrice.selector, address(WETH)),
+            abi.encode(2200e18)
+        );
+
+        ILiquidationFacet(SATOSHI_X_APP_ADDRESS).liquidate(TROVE_MANAGER, user);
+    }
+
+    function testFork_SetGracePeriod() public {
+        vm.startPrank(OWNER_ADDRESS);
+
+        ILiquidationFacet(SATOSHI_X_APP_ADDRESS).setGracePeriod(15 minutes);
+    }
+
+    function testFork_SyncGracePeriod() public {
+        IBorrowerOperationsFacet(SATOSHI_X_APP_ADDRESS).syncGracePeriod();
+    }
+}

script/upgrade/UpgradeGracePeriod.s.sol

@@ -0,0 +1,148 @@
+// SPDX-License-Identifier: UNLICENSED
+pragma solidity ^0.8.13;
+
+import { Initializer } from "../../src/core/Initializer.sol";
+import { TroveManager } from "../../src/core/TroveManager.sol";
+import { BorrowerOperationsFacet } from "../../src/core/facets/BorrowerOperationsFacet.sol";
+import { LiquidationFacet } from "../../src/core/facets/LiquidationFacet.sol";
+import { IBorrowerOperationsFacet } from "../../src/core/interfaces/IBorrowerOperationsFacet.sol";
+import { IFactoryFacet } from "../../src/core/interfaces/IFactoryFacet.sol";
+import { ILiquidationFacet } from "../../src/core/interfaces/ILiquidationFacet.sol";
+
+import { ISatoshiXApp } from "../../src/core/interfaces/ISatoshiXApp.sol";
+import { ITroveManager } from "../../src/core/interfaces/ITroveManager.sol";
+import { IERC2535DiamondCutInternal } from "@solidstate/contracts/interfaces/IERC2535DiamondCutInternal.sol";
+import { Script, console } from "forge-std/Script.sol";
+
+address payable constant SATOSHI_X_APP_ADDRESS = payable(0x07BbC5A83B83a5C440D1CAedBF1081426d0AA4Ec);
+address payable constant TM_BEACON_ADDRESS = payable(0x00);
+
+interface IBeacon {
+    function upgradeTo(address newImplementation) external;
+    function implementation() external view returns (address);
+}
+
+library UpgradeGracePeriodLib {
+    function upgradeGracePeriod(address payable satoshiXApp) internal {
+        IERC2535DiamondCutInternal.FacetCut[] memory facetCuts = new IERC2535DiamondCutInternal.FacetCut[](6);
+
+        // BorrowerOperationsFacet
+        address newBorrowerOperationsImpl = address(new BorrowerOperationsFacet());
+        facetCuts[0] = IERC2535DiamondCutInternal.FacetCut({
+            target: newBorrowerOperationsImpl,
+            action: IERC2535DiamondCutInternal.FacetCutAction.REPLACE,
+            selectors: getBOSelectors()
+        });
+        facetCuts[1] = IERC2535DiamondCutInternal.FacetCut({
+            target: newBorrowerOperationsImpl,
+            action: IERC2535DiamondCutInternal.FacetCutAction.ADD,
+            selectors: getBONewSelectors()
+        });
+
+        // LiquidationFacet
+        address newLiquidationFacetImpl = address(new LiquidationFacet());
+        facetCuts[2] = IERC2535DiamondCutInternal.FacetCut({
+            target: newLiquidationFacetImpl,
+            action: IERC2535DiamondCutInternal.FacetCutAction.REPLACE,
+            selectors: getLiquidationSelectors()
+        });
+        facetCuts[3] = IERC2535DiamondCutInternal.FacetCut({
+            target: newLiquidationFacetImpl,
+            action: IERC2535DiamondCutInternal.FacetCutAction.ADD,
+            selectors: getLiquidationNewSelectors()
+        });
+
+        // Initializer
+        address newInitializerImpl = address(new Initializer());
+        facetCuts[4] = IERC2535DiamondCutInternal.FacetCut({
+            target: newInitializerImpl,
+            action: IERC2535DiamondCutInternal.FacetCutAction.REPLACE,
+            selectors: getInitializerSelectors()
+        });
+        facetCuts[5] = IERC2535DiamondCutInternal.FacetCut({
+            target: newInitializerImpl,
+            action: IERC2535DiamondCutInternal.FacetCutAction.ADD,
+            selectors: getInitializerNewSelectors()
+        });
+
+        // Upgrade and run initV2
+        ISatoshiXApp XAPP = ISatoshiXApp(satoshiXApp);
+        bytes memory data = abi.encodeWithSelector(Initializer.initV2.selector);
+        XAPP.diamondCut(facetCuts, satoshiXApp, data);
+    }
+
+    function getBOSelectors() internal pure returns (bytes4[] memory) {
+        bytes4[] memory selectors = new bytes4[](19);
+        selectors[0] = IBorrowerOperationsFacet.addColl.selector;
+        selectors[1] = IBorrowerOperationsFacet.adjustTrove.selector;
+        selectors[2] = IBorrowerOperationsFacet.checkRecoveryMode.selector;
+        selectors[3] = IBorrowerOperationsFacet.closeTrove.selector;
+        selectors[4] = IBorrowerOperationsFacet.fetchBalances.selector;
+        selectors[5] = IBorrowerOperationsFacet.getCompositeDebt.selector;
+        selectors[6] = IBorrowerOperationsFacet.getGlobalSystemBalances.selector;
+        selectors[7] = IBorrowerOperationsFacet.getTCR.selector;
+        selectors[8] = IBorrowerOperationsFacet.isApprovedDelegate.selector;
+        selectors[9] = IBorrowerOperationsFacet.minNetDebt.selector;
+        selectors[10] = IBorrowerOperationsFacet.openTrove.selector;
+        selectors[11] = IBorrowerOperationsFacet.removeTroveManager.selector;
+        selectors[12] = IBorrowerOperationsFacet.repayDebt.selector;
+        selectors[13] = IBorrowerOperationsFacet.setDelegateApproval.selector;
+        selectors[14] = IBorrowerOperationsFacet.setMinNetDebt.selector;
+        selectors[15] = IBorrowerOperationsFacet.troveManagersData.selector;
+        selectors[16] = IBorrowerOperationsFacet.withdrawColl.selector;
+        selectors[17] = IBorrowerOperationsFacet.withdrawDebt.selector;
+        selectors[18] = IBorrowerOperationsFacet.forceResetTM.selector;
+        return selectors;
+    }
+
+    function getBONewSelectors() internal pure returns (bytes4[] memory) {
+        bytes4[] memory newSelectors = new bytes4[](1);
+        newSelectors[0] = IBorrowerOperationsFacet.syncGracePeriod.selector;
+        return newSelectors;
+    }
+
+    function getLiquidationSelectors() internal pure returns (bytes4[] memory) {
+        bytes4[] memory selectors = new bytes4[](3);
+        selectors[0] = ILiquidationFacet.batchLiquidateTroves.selector;
+        selectors[1] = ILiquidationFacet.liquidate.selector;
+        selectors[2] = ILiquidationFacet.liquidateTroves.selector;
+        return selectors;
+    }
+
+    function getLiquidationNewSelectors() internal pure returns (bytes4[] memory) {
+        bytes4[] memory newSelectors = new bytes4[](1);
+        newSelectors[0] = ILiquidationFacet.setGracePeriod.selector;
+        return newSelectors;
+    }
+
+    function getInitializerSelectors() internal pure returns (bytes4[] memory) {
+        bytes4[] memory selectors = new bytes4[](1);
+        selectors[0] = Initializer.init.selector;
+        return selectors;
+    }
+
+    function getInitializerNewSelectors() internal pure returns (bytes4[] memory) {
+        bytes4[] memory newSelectors = new bytes4[](1);
+        newSelectors[0] = Initializer.initV2.selector;
+        return newSelectors;
+    }
+}
+
+contract UpgradeGracePeriodScript is Script {
+    uint256 internal OWNER_PRIVATE_KEY;
+
+    function setUp() public {
+        OWNER_PRIVATE_KEY = uint256(vm.envBytes32("OWNER_PRIVATE_KEY"));
+    }
+
+    function run() public {
+        vm.startBroadcast(OWNER_PRIVATE_KEY);
+
+        UpgradeGracePeriodLib.upgradeGracePeriod(SATOSHI_X_APP_ADDRESS);
+        IBeacon troveManagerBeacon = IBeacon(TM_BEACON_ADDRESS);
+        address newTroveManagerImpl = address(new TroveManager());
+        troveManagerBeacon.upgradeTo(address(newTroveManagerImpl));
+
+        vm.stopBroadcast();
+    }
+}

src/core/AppStorage.sol

@@ -102,6 +102,9 @@ library AppStorage {
         mapping(address => AssetConfig) assetConfigs;
         mapping(address => bool) isAssetSupported;
         mapping(address => uint256) dailyMintCount;
+        // Recovery mode liquidation grace period
+        uint128 lastGracePeriodStartTimestamp;
+        uint128 recoveryModeGracePeriodDuration;
     }
 
     function layout() internal pure returns (Layout storage s) {

src/core/Config.sol

@@ -29,6 +29,8 @@ library Config {
     /* Liquidation */
     uint256 internal constant _100_PCT = 1_000_000_000_000_000_000; // 1e18 == 100%
 
+    uint256 internal constant _110_PCT = 1_100_000_000_000_000_000; // 110%
+
     /* PriceFeedAggregator */
     uint256 public constant PRICE_TARGET_DIGITS = 18;
 
@@ -45,4 +47,8 @@ library Config {
      * Farming
      */
     uint256 constant FARMING_PRECISION = 1e4;
+
+    /* Recovery mode grace period */
+    uint128 constant UNSET_TIMESTAMP = type(uint128).max;
+    uint128 constant MINIMUM_GRACE_PERIOD = 15 minutes;
 }

src/core/Initializer.sol

@@ -108,5 +108,20 @@ contract Initializer is Initializable, AccessControlInternal, OwnableInternal {
          */
         // debtToken
         // rewardManager
+
+        /**
+         * LiquidationFacet
+         */
+        initV2();
+    }
+
+    function initV2() public reinitializer(2) {
+        AppStorage.Layout storage s = AppStorage.layout();
+
+        /**
+         * LiquidationFacet
+         */
+        s.lastGracePeriodStartTimestamp = Config.UNSET_TIMESTAMP;
+        s.recoveryModeGracePeriodDuration = Config.MINIMUM_GRACE_PERIOD;
     }
 }

src/core/TroveManager.sol

@@ -678,6 +678,8 @@ contract TroveManager is ITroveManager, Initializable, OwnableUpgradeable {
         _sendCollateral(msg.sender, totals.collateralToSendToRedeemer);
         _resetState();
 
+        IBorrowerOperationsFacet(satoshiXApp).syncGracePeriod();
+
         if (interestPayable > 0) {
             collectInterests();
         }
@@ -1109,6 +1111,7 @@ contract TroveManager is ITroveManager, Initializable, OwnableUpgradeable {
         external
     {
         _requireCallerIsSatoshiXapp();
+
         // redistribute debt and collateral
         _redistributeDebtAndColl(_debt, _coll);
 
@@ -1134,6 +1137,8 @@ contract TroveManager is ITroveManager, Initializable, OwnableUpgradeable {
             collateralToken.safeIncreaseAllowance(rewardManager, collGasCompToFeeReceiver);
         }
         IRewardManager(rewardManager).increaseCollPerUintStaked(collGasCompToFeeReceiver);
+
+        IBorrowerOperationsFacet(satoshiXApp).syncGracePeriod();
     }
 
     function _redistributeDebtAndColl(uint256 _debt, uint256 _coll) internal {