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converted a few more tests
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@aniemerg
aniemerg committed Jan 16, 2025
1 parent fb43c17 commit 1c73f1a
Showing 1 changed file with 146 additions and 21 deletions.
167 changes: 146 additions & 21 deletions test/DistributionMarket.t.sol
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Original file line number Diff line number Diff line change
Expand Up @@ -6,6 +6,7 @@ import "@openzeppelin/contracts/token/ERC20/ERC20.sol";
import "../src/libraries/DistributionMath.sol";
import "../src/DistributionMarket.sol";
import "../src/MarketPosition.sol";
import "forge-std/console.sol";

// Test ERC20 token for market collateral
contract TestToken is ERC20 {
Expand Down Expand Up @@ -199,7 +200,6 @@ contract DistributionMarketTest is Test {
uint256 totalPayout = token.balanceOf(LP_1);
assertApproxEqRel(totalPayout, INITIAL_BACKING, EPSILON);
}

function testTradeAfterLp() public {
// Initialize market first
vm.startPrank(LP_1);
Expand All @@ -222,42 +222,167 @@ contract DistributionMarketTest is Test {
// Execute trade - move mean to 100.0, keep same std dev
int256 newMean = 100e18;

// Calculate expected collateral (from Python test)
uint256 expectedCollateral = 14851900000000000000; // ~14.8519 scaled to 1e18
// Calculate expected collateral using DistributionMath directly
uint256 calculatedCollateral = DistributionMath.calculateRequiredCollateral(
INITIAL_MEAN,
INITIAL_STD_DEV,
newMean,
INITIAL_STD_DEV,
INITIAL_K,
newMean // Using newMean as hint
);

// Execute trade and capture position ID
vm.expectEmit(true, true, true, true);
uint256 expectedPosId = initPositionId + 1;
console.log("Expected Position ID:", expectedPosId);
console.log("Expected Collateral:", expectedCollateral);
emit Trade(expectedPosId, TRADER_1, newMean, INITIAL_STD_DEV, expectedCollateral);
console.log("Calculated Required Collateral:");
console.logUint(calculatedCollateral);
console.log("Expected Collateral:");
console.logUint(14851900000000000000);

// Now do the trade
uint256 positionId = market.trade(
newMean,
INITIAL_STD_DEV,
maxCollateral
);
console.log("Actual Position ID:", positionId);

// Get position details to see actual collateral
// Get position details
(,,,uint256 actualCollateral,) = market.getPosition(positionId);
console.log("Actual Collateral:", actualCollateral);

vm.stopPrank();
vm.stopPrank();
console.log("Actual Position Collateral:");
console.logUint(actualCollateral);

// Verify position creation
// Verify position details
(int256 posMean, uint256 posStdDev, uint256 posK, uint256 posCollateral, bool isLp) = market.getPosition(positionId);
assertEq(posMean, newMean);
assertEq(posStdDev, INITIAL_STD_DEV);
assertEq(posK, INITIAL_K);
assertFalse(isLp);

// Check collateral is close to expected value (14.8519 from Python test)
assertApproxEqRel(posCollateral, expectedCollateral, EPSILON);
// Check if actual collateral matches what we calculated directly
assertEq(actualCollateral, calculatedCollateral, "Position collateral doesn't match calculated");

// Check if it's within acceptable range of expected value
assertApproxEqRel(
actualCollateral,
14851900000000000000, // Expected ~14.8519 scaled to 1e18
EPSILON,
"Collateral not within expected range"
);
}

// Check market state updated
assertEq(market.currentMean(), newMean);
assertEq(market.currentStdDev(), INITIAL_STD_DEV);
// These functions would be added to DistributionMarketTest
function testTradeAndSettlement() public {
// Initialize market
vm.startPrank(LP_1);
uint256 lpPositionId = market.initializeMarket(
INITIAL_MEAN,
INITIAL_STD_DEV,
INITIAL_BACKING,
INITIAL_K
);
vm.stopPrank();

// Setup and execute trade
uint256 maxCollateral = 15e18;
token.mint(TRADER_1, maxCollateral);

vm.startPrank(TRADER_1);
token.approve(address(market), maxCollateral);

// Trade to move mean to 100.0
int256 newMean = 100e18;
uint256 tradePositionId = market.trade(
newMean,
INITIAL_STD_DEV,
maxCollateral
);
vm.stopPrank();

// Record balances before settlement
uint256 initialTraderBalance = token.balanceOf(TRADER_1);
uint256 initialLpBalance = token.balanceOf(LP_1);

// Settle market at 107.6 (profitable point for trader)
int256 finalValue = 107.6e18;
market.settleMarket(finalValue);

// Settle trader position
vm.prank(TRADER_1);
market.settlePosition(tradePositionId);

// Get trader's total (collateral + payout)
uint256 traderFinalBalance = token.balanceOf(TRADER_1);
uint256 traderTotalReceived = traderFinalBalance - initialTraderBalance;

// Expected trader total (from Python test: collateral + 14.8519282576)
(,,,uint256 traderCollateral,) = market.getPosition(tradePositionId);
uint256 expectedTraderTotal = traderCollateral + 14851928257600000000;
assertApproxEqRel(traderTotalReceived, expectedTraderTotal, EPSILON);

// Settle LP position
vm.startPrank(LP_1);
market.settlePosition(lpPositionId);
market.settleLpTokens(LP_1);
vm.stopPrank();

// Get LP's total received
uint256 lpFinalBalance = token.balanceOf(LP_1);
uint256 lpTotalReceived = lpFinalBalance - initialLpBalance;

// Verify total payouts equal total deposits
uint256 totalPayouts = traderTotalReceived + lpTotalReceived;
uint256 totalDeposits = INITIAL_BACKING + traderCollateral;
assertApproxEqRel(totalPayouts, totalDeposits, EPSILON);
}

function testStdDevBackingConstraint() public {
// Initialize market first
vm.startPrank(LP_1);
market.initializeMarket(
INITIAL_MEAN,
INITIAL_STD_DEV,
INITIAL_BACKING,
INITIAL_K
);
vm.stopPrank();

// Setup trader
uint256 maxCollateral = 20e18; // More than needed
token.mint(TRADER_1, maxCollateral);
vm.startPrank(TRADER_1);
token.approve(address(market), maxCollateral);

// Calculate minimum allowed std dev based on current k and backing
// σ >= k^2 / (b^2 * sqrt(π))
uint256 minStdDev = DistributionMath.calculateMinimumSigma(
INITIAL_K,
INITIAL_BACKING
);

console.log("Minimum standard deviation:", minStdDev);

// Try to trade with std dev below minimum - should fail
int256 newMean = 100e18;
uint256 invalidStdDev = minStdDev - 1e17; // Just below minimum

vm.expectRevert("Standard deviation too low");
market.trade(
newMean,
invalidStdDev,
maxCollateral
);

// Verify trade with valid std dev succeeds
uint256 validStdDev = minStdDev + 1e17; // Just above minimum
uint256 positionId = market.trade(
newMean,
validStdDev,
maxCollateral
);
vm.stopPrank();

// Verify position was created
(int256 posMean, uint256 posStdDev,,, bool isLp) = market.getPosition(positionId);
assertEq(posMean, newMean);
assertEq(posStdDev, validStdDev);
assertFalse(isLp);
}
}

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