Permissionless Bad Debt handling (#207)

* feat: add permissionless bad debt flag * fix: changed account names * fix: fuzz + tests --------- Co-authored-by: Jakob <[email protected]>
mrgnlabs · May 8, 2024 · ce714ea · ce714ea
1 parent 5828906
commit ce714ea
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Showing 13 changed files with 286 additions and 28 deletions.
diff --git a/clients/rust/marginfi-cli/src/entrypoint.rs b/clients/rust/marginfi-cli/src/entrypoint.rs
@@ -251,6 +251,11 @@ pub enum BankCommand {
         usd_init_limit: Option<u64>,
         #[clap(long, help = "Oracle max age in seconds, 0 to use default value (60s)")]
         oracle_max_age: Option<u16>,
+        #[clap(
+            long,
+            help = "Permissionless bad debt settlement, if true the group admin is not required to settle bad debt"
+        )]
+        permissionless_bad_debt_settlement: Option<bool>,
     },
     #[cfg(feature = "dev")]
     InspectPriceOracle {
@@ -614,6 +619,7 @@ fn bank(subcmd: BankCommand, global_options: &GlobalOptions) -> Result<()> {
             oracle_key,
             usd_init_limit,
             oracle_max_age,
+            permissionless_bad_debt_settlement,
         } => {
             let bank = config
                 .mfi_program
@@ -661,6 +667,7 @@ fn bank(subcmd: BankCommand, global_options: &GlobalOptions) -> Result<()> {
                     risk_tier: risk_tier.map(|x| x.into()),
                     total_asset_value_init_limit: usd_init_limit,
                     oracle_max_age,
+                    permissionless_bad_debt_settlement,
                 },
             )
         }

diff --git a/clients/rust/marginfi-cli/src/processor/mod.rs b/clients/rust/marginfi-cli/src/processor/mod.rs
@@ -197,7 +197,7 @@ Last Update: {:?}h ago ({})
         bank.config.oracle_setup,
         bank.config.oracle_keys,
         bank.config.get_oracle_max_age(),
-        bank.emissions_flags,
+        bank.flags,
         I80F48::from(bank.emissions_rate),
         bank.emissions_mint,
         I80F48::from(bank.emissions_remaining),
@@ -736,7 +736,7 @@ fn handle_bankruptcy_for_an_account(
         program_id: config.program_id,
         accounts: marginfi::accounts::LendingPoolHandleBankruptcy {
             marginfi_group: profile.marginfi_group.unwrap(),
-            admin: config.authority(),
+            signer: config.authority(),
             bank: bank_pk,
             marginfi_account: marginfi_account_pk,
             liquidity_vault: find_bank_vault_pda(
@@ -881,7 +881,7 @@ fn make_bankruptcy_ix(
         program_id: config.program_id,
         accounts: marginfi::accounts::LendingPoolHandleBankruptcy {
             marginfi_group: profile.marginfi_group.unwrap(),
-            admin: config.fee_payer.pubkey(),
+            signer: config.fee_payer.pubkey(),
             bank: bank_pk,
             marginfi_account: marginfi_account_pk,
             liquidity_vault: find_bank_vault_pda(

diff --git a/programs/marginfi/fuzz/src/lib.rs b/programs/marginfi/fuzz/src/lib.rs
@@ -665,7 +665,7 @@ impl<'bump> MarginfiFuzzContext<'bump> {
             &marginfi::ID,
             &mut marginfi::instructions::LendingPoolHandleBankruptcy {
                 marginfi_group: AccountLoader::try_from(&self.marginfi_group.clone())?,
-                admin: Signer::try_from(&self.owner)?,
+                signer: Signer::try_from(&self.owner)?,
                 bank: AccountLoader::try_from(&bank.bank.clone())?,
                 marginfi_account: AccountLoader::try_from(
                     &marginfi_account.margin_account.clone(),

diff --git a/programs/marginfi/src/constants.rs b/programs/marginfi/src/constants.rs
@@ -60,6 +60,10 @@ pub const ZERO_AMOUNT_THRESHOLD: I80F48 = I80F48!(0.0001);
 
 pub const EMISSIONS_FLAG_BORROW_ACTIVE: u64 = 1 << 0;
 pub const EMISSIONS_FLAG_LENDING_ACTIVE: u64 = 1 << 1;
+pub const PERMISSIONLESS_BAD_DEBT_SETTLEMENT_FLAG: u64 = 1 << 2;
+
+pub(crate) const EMISSION_FLAGS: u64 = EMISSIONS_FLAG_BORROW_ACTIVE | EMISSIONS_FLAG_LENDING_ACTIVE;
+pub(crate) const GROUP_FLAGS: u64 = PERMISSIONLESS_BAD_DEBT_SETTLEMENT_FLAG;
 
 /// Cutoff timestamp for balance last_update used in accounting collected emissions.
 /// Any balance updates before this timestamp are ignored, and current_timestamp is used instead.

diff --git a/programs/marginfi/src/errors.rs b/programs/marginfi/src/errors.rs
@@ -91,6 +91,8 @@ pub enum MarginfiError {
     IllegalBalanceState,
     #[msg("Illegal account authority transfer")] // 6044
     IllegalAccountAuthorityTransfer,
+    #[msg("Unauthorized")] // 6045
+    Unauthorized,
 }
 
 impl From<MarginfiError> for ProgramError {

diff --git a/programs/marginfi/src/instructions/marginfi_group/configure_bank.rs b/programs/marginfi/src/instructions/marginfi_group/configure_bank.rs
@@ -65,7 +65,9 @@ pub fn lending_pool_setup_emissions(
     );
 
     bank.emissions_mint = ctx.accounts.emissions_mint.key();
-    bank.emissions_flags = emissions_flags;
+
+    bank.override_emissions_flag(emissions_flags);
+
     bank.emissions_rate = emissions_rate;
     bank.emissions_remaining = I80F48::from_num(total_emissions).into();
 
@@ -155,7 +157,7 @@ pub fn lending_pool_update_emissions_parameters(
 
     if let Some(flags) = emissions_flags {
         msg!("Updating emissions flags to {:#010b}", flags);
-        bank.emissions_flags = flags;
+        bank.flags = flags;
     }
 
     if let Some(rate) = emissions_rate {

diff --git a/programs/marginfi/src/instructions/marginfi_group/handle_bankruptcy.rs b/programs/marginfi/src/instructions/marginfi_group/handle_bankruptcy.rs
@@ -1,4 +1,4 @@
-use crate::constants::ZERO_AMOUNT_THRESHOLD;
+use crate::constants::{PERMISSIONLESS_BAD_DEBT_SETTLEMENT_FLAG, ZERO_AMOUNT_THRESHOLD};
 use crate::events::{AccountEventHeader, LendingPoolBankHandleBankruptcyEvent};
 use crate::state::marginfi_account::DISABLED_FLAG;
 use crate::{
@@ -29,8 +29,19 @@ pub fn lending_pool_handle_bankruptcy(ctx: Context<LendingPoolHandleBankruptcy>)
         insurance_vault,
         token_program,
         bank: bank_loader,
+        marginfi_group: marginfi_group_loader,
         ..
     } = ctx.accounts;
+    let bank = bank_loader.load()?;
+
+    if !bank.get_flag(PERMISSIONLESS_BAD_DEBT_SETTLEMENT_FLAG) {
+        check!(
+            ctx.accounts.signer.key() == marginfi_group_loader.load()?.admin,
+            MarginfiError::Unauthorized
+        );
+    }
+
+    drop(bank);
 
     let mut marginfi_account = marginfi_account_loader.load_mut()?;
 
@@ -107,7 +118,7 @@ pub fn lending_pool_handle_bankruptcy(ctx: Context<LendingPoolHandleBankruptcy>)
 
     emit!(LendingPoolBankHandleBankruptcyEvent {
         header: AccountEventHeader {
-            signer: Some(ctx.accounts.admin.key()),
+            signer: Some(ctx.accounts.signer.key()),
             marginfi_account: marginfi_account_loader.key(),
             marginfi_account_authority: marginfi_account.authority,
             marginfi_group: marginfi_account.group,
@@ -126,8 +137,8 @@ pub fn lending_pool_handle_bankruptcy(ctx: Context<LendingPoolHandleBankruptcy>)
 pub struct LendingPoolHandleBankruptcy<'info> {
     pub marginfi_group: AccountLoader<'info, MarginfiGroup>,
 
-    #[account(address = marginfi_group.load()?.admin)]
-    pub admin: Signer<'info>,
+    // #[account(address = marginfi_group.load()?.admin)]
+    pub signer: Signer<'info>,
 
     #[account(
         mut,

diff --git a/programs/marginfi/src/state/marginfi_account.rs b/programs/marginfi/src/state/marginfi_account.rs
@@ -1150,8 +1150,8 @@ impl<'a> BankAccountWrapper<'a> {
     pub fn claim_emissions(&mut self, current_timestamp: u64) -> MarginfiResult {
         if let Some(balance_amount) = match (
             self.balance.get_side(),
-            self.bank.get_emissions_flag(EMISSIONS_FLAG_LENDING_ACTIVE),
-            self.bank.get_emissions_flag(EMISSIONS_FLAG_BORROW_ACTIVE),
+            self.bank.get_flag(EMISSIONS_FLAG_LENDING_ACTIVE),
+            self.bank.get_flag(EMISSIONS_FLAG_BORROW_ACTIVE),
         ) {
             (Some(BalanceSide::Assets), true, _) => Some(
                 self.bank

diff --git a/programs/marginfi/src/state/marginfi_group.rs b/programs/marginfi/src/state/marginfi_group.rs
@@ -7,9 +7,10 @@ use crate::events::{GroupEventHeader, LendingPoolBankAccrueInterestEvent};
 use crate::{
     assert_struct_align, assert_struct_size, check,
     constants::{
-        FEE_VAULT_AUTHORITY_SEED, FEE_VAULT_SEED, INSURANCE_VAULT_AUTHORITY_SEED,
-        INSURANCE_VAULT_SEED, LIQUIDITY_VAULT_AUTHORITY_SEED, LIQUIDITY_VAULT_SEED,
-        MAX_ORACLE_KEYS, MAX_PRICE_AGE_SEC, PYTH_ID, SECONDS_PER_YEAR,
+        EMISSION_FLAGS, FEE_VAULT_AUTHORITY_SEED, FEE_VAULT_SEED, GROUP_FLAGS,
+        INSURANCE_VAULT_AUTHORITY_SEED, INSURANCE_VAULT_SEED, LIQUIDITY_VAULT_AUTHORITY_SEED,
+        LIQUIDITY_VAULT_SEED, MAX_ORACLE_KEYS, MAX_PRICE_AGE_SEC,
+        PERMISSIONLESS_BAD_DEBT_SETTLEMENT_FLAG, PYTH_ID, SECONDS_PER_YEAR,
         TOTAL_ASSET_VALUE_INIT_LIMIT_INACTIVE,
     },
     debug, math_error,
@@ -316,12 +317,13 @@ pub struct Bank {
 
     pub config: BankConfig,
 
-    /// Emissions Config Flags
+    /// Bank Config Flags
     ///
     /// - EMISSIONS_FLAG_BORROW_ACTIVE: 1
     /// - EMISSIONS_FLAG_LENDING_ACTIVE: 2
+    /// - PERMISSIONLESS_BAD_DEBT_SETTLEMENT: 4
     ///
-    pub emissions_flags: u64,
+    pub flags: u64,
     /// Emissions APR.
     /// Number of emitted tokens (emissions_mint) per 1e(bank.mint_decimal) tokens (bank mint) (native amount) per 1 YEAR.
     pub emissions_rate: u64,
@@ -371,7 +373,7 @@ impl Bank {
             total_asset_shares: I80F48::ZERO.into(),
             last_update: current_timestamp,
             config,
-            emissions_flags: 0,
+            flags: 0,
             emissions_rate: 0,
             emissions_remaining: I80F48::ZERO.into(),
             emissions_mint: Pubkey::default(),
@@ -541,6 +543,10 @@ impl Bank {
 
         set_if_some!(self.config.oracle_max_age, config.oracle_max_age);
 
+        if let Some(flag) = config.permissionless_bad_debt_settlement {
+            self.update_flag(flag, PERMISSIONLESS_BAD_DEBT_SETTLEMENT_FLAG);
+        }
+
         self.config.validate()?;
 
         Ok(())
@@ -717,8 +723,31 @@ impl Bank {
         }
     }
 
-    pub fn get_emissions_flag(&self, flag: u64) -> bool {
-        (self.emissions_flags & flag) == flag
+    pub fn get_flag(&self, flag: u64) -> bool {
+        (self.flags & flag) == flag
+    }
+
+    pub(crate) fn override_emissions_flag(&mut self, flag: u64) {
+        assert!(Self::verify_emissions_flags(flag));
+        self.flags = flag;
+    }
+
+    pub(crate) fn update_flag(&mut self, value: bool, flag: u64) {
+        assert!(Self::verify_group_flags(flag));
+
+        if value {
+            self.flags |= flag;
+        } else {
+            self.flags &= !flag;
+        }
+    }
+
+    const fn verify_emissions_flags(flags: u64) -> bool {
+        flags & EMISSION_FLAGS == flags
+    }
+
+    const fn verify_group_flags(flags: u64) -> bool {
+        flags & GROUP_FLAGS == flags
     }
 }
 
@@ -1151,6 +1180,8 @@ pub struct BankConfigOpt {
     pub total_asset_value_init_limit: Option<u64>,
 
     pub oracle_max_age: Option<u16>,
+
+    pub permissionless_bad_debt_settlement: Option<bool>,
 }
 
 #[cfg_attr(