ore/program/src/reset.rs

use ore_api::prelude::*;
use steel::*;

/// Reset tops up the bus balances, updates the base reward rate, and sets up the ORE program for the next epoch.
pub fn process_reset(accounts: &[AccountInfo<'_>], _data: &[u8]) -> ProgramResult {
    // Load accounts.
    let [signer_info, bus_0_info, bus_1_info, bus_2_info, bus_3_info, bus_4_info, bus_5_info, bus_6_info, bus_7_info, config_info, mint_info, treasury_info, treasury_tokens_info, token_program] =
        accounts
    else {
        return Err(ProgramError::NotEnoughAccountKeys);
    };
    signer_info.is_signer()?;
    let bus_0 = bus_0_info
        .to_account_mut::<Bus>(&ore_api::ID)?
        .check_mut(|b| b.id == 0)?;
    let bus_1 = bus_1_info
        .to_account_mut::<Bus>(&ore_api::ID)?
        .check_mut(|b| b.id == 1)?;
    let bus_2 = bus_2_info
        .to_account_mut::<Bus>(&ore_api::ID)?
        .check_mut(|b| b.id == 2)?;
    let bus_3 = bus_3_info
        .to_account_mut::<Bus>(&ore_api::ID)?
        .check_mut(|b| b.id == 3)?;
    let bus_4 = bus_4_info
        .to_account_mut::<Bus>(&ore_api::ID)?
        .check_mut(|b| b.id == 4)?;
    let bus_5 = bus_5_info
        .to_account_mut::<Bus>(&ore_api::ID)?
        .check_mut(|b| b.id == 5)?;
    let bus_6 = bus_6_info
        .to_account_mut::<Bus>(&ore_api::ID)?
        .check_mut(|b| b.id == 6)?;
    let bus_7 = bus_7_info
        .to_account_mut::<Bus>(&ore_api::ID)?
        .check_mut(|b| b.id == 7)?;
    let config = config_info
        .is_config()?
        .to_account_mut::<Config>(&ore_api::ID)?;
    let mint = mint_info
        .has_address(&MINT_ADDRESS)?
        .is_writable()?
        .to_mint()?;
    treasury_info.is_treasury()?.is_writable()?;
    treasury_tokens_info.is_treasury_tokens()?.is_writable()?;
    token_program.is_program(&spl_token::ID)?;

    // Validate enough time has passed since the last reset.
    let clock = Clock::get()?;
    if config
        .last_reset_at
        .saturating_add(EPOCH_DURATION)
        .gt(&clock.unix_timestamp)
    {
        return Ok(());
    }

    // Update timestamp.
    config.last_reset_at = clock.unix_timestamp;

    // Reset bus accounts and calculate actual rewards mined since last reset.
    let busses = [bus_0, bus_1, bus_2, bus_3, bus_4, bus_5, bus_6, bus_7];
    let mut total_remaining_rewards = 0u64;
    let mut total_theoretical_rewards = 0u64;
    let mut top_balance = 0u64;
    for bus in busses {
        // Track top balance.
        if bus.top_balance.gt(&top_balance) {
            top_balance = bus.top_balance;
        }

        // Track accumulators.
        total_remaining_rewards = total_remaining_rewards.saturating_add(bus.rewards);
        total_theoretical_rewards =
            total_theoretical_rewards.saturating_add(bus.theoretical_rewards);

        // Reset bus account for new epoch.
        bus.rewards = BUS_EPOCH_REWARDS;
        bus.theoretical_rewards = 0;
        bus.top_balance = 0;
    }
    let total_epoch_rewards = MAX_EPOCH_REWARDS.saturating_sub(total_remaining_rewards);

    // Update global top balance.
    config.top_balance = top_balance;

    // Update base reward rate for next epoch.
    config.base_reward_rate =
        calculate_new_reward_rate(config.base_reward_rate, total_theoretical_rewards);

    // If base reward rate is too low, increment min difficulty by 1 and double base reward rate.
    if config.base_reward_rate.le(&BASE_REWARD_RATE_MIN_THRESHOLD) {
        config.min_difficulty = config.min_difficulty.checked_add(1).unwrap();
        config.base_reward_rate = config.base_reward_rate.checked_mul(2).unwrap();
    }

    // If base reward rate is too high, decrement min difficulty by 1 and halve base reward rate.
    if config.base_reward_rate.ge(&BASE_REWARD_RATE_MAX_THRESHOLD) && config.min_difficulty.gt(&1) {
        config.min_difficulty = config.min_difficulty.checked_sub(1).unwrap();
        config.base_reward_rate = config.base_reward_rate.checked_div(2).unwrap();
    }

    // Max supply check.
    if mint.supply.ge(&MAX_SUPPLY) {
        return Err(OreError::MaxSupply.into());
    }

    // Fund the treasury token account.
    let amount = MAX_SUPPLY
        .saturating_sub(mint.supply)
        .min(total_epoch_rewards);
    solana_program::program::invoke_signed(
        &spl_token::instruction::mint_to(
            &spl_token::id(),
            mint_info.key,
            treasury_tokens_info.key,
            treasury_info.key,
            &[treasury_info.key],
            amount,
        )?,
        &[
            token_program.clone(),
            mint_info.clone(),
            treasury_tokens_info.clone(),
            treasury_info.clone(),
        ],
        &[&[TREASURY, &[TREASURY_BUMP]]],
    )?;

    Ok(())
}

/// This function calculates what the new reward rate should be based on how many total rewards
/// were mined in the prior epoch. The math is largely identitical to function used by the Bitcoin
/// network to update the difficulty between each epoch.
///
/// new_rate = current_rate * (target_rewards / actual_rewards)
///
/// The new rate is then smoothed by a constant factor to avoid large fluctuations. In Ore's case,
/// the epochs are short (60 seconds) so a smoothing factor of 2 has been chosen. That is, the reward rate
/// can at most double or halve from one epoch to the next.
pub(crate) fn calculate_new_reward_rate(current_rate: u64, epoch_rewards: u64) -> u64 {
    // Avoid division by zero. Leave the reward rate unchanged, if detected.
    if epoch_rewards.eq(&0) {
        return current_rate;
    }

    // Calculate new reward rate.
    let new_rate = (current_rate as u128)
        .saturating_mul(TARGET_EPOCH_REWARDS as u128)
        .saturating_div(epoch_rewards as u128) as u64;

    // Smooth reward rate so it cannot change by more than a constant factor from one epoch to the next.
    let new_rate_min = current_rate.saturating_div(SMOOTHING_FACTOR);
    let new_rate_max = current_rate.saturating_mul(SMOOTHING_FACTOR);
    let new_rate_smoothed = new_rate.min(new_rate_max).max(new_rate_min);

    // Prevent reward rate from dropping below 1 or exceeding BUS_EPOCH_REWARDS and return.
    new_rate_smoothed.max(1).min(BUS_EPOCH_REWARDS)
}

#[cfg(test)]
mod tests {
    use rand::{distributions::Uniform, Rng};

    use crate::calculate_new_reward_rate;
    use ore_api::consts::{
        BASE_REWARD_RATE_MIN_THRESHOLD, BUS_EPOCH_REWARDS, MAX_EPOCH_REWARDS, SMOOTHING_FACTOR,
        TARGET_EPOCH_REWARDS,
    };

    const FUZZ_SIZE: u64 = 10_000;

    #[test]
    fn test_calculate_new_reward_rate_target() {
        let current_rate = 1000;
        let new_rate = calculate_new_reward_rate(current_rate, TARGET_EPOCH_REWARDS);
        assert!(new_rate.eq(&current_rate));
    }

    #[test]
    fn test_calculate_new_reward_rate_div_by_zero() {
        let current_rate = 1000;
        let new_rate = calculate_new_reward_rate(current_rate, 0);
        assert!(new_rate.eq(&current_rate));
    }

    #[test]
    fn test_calculate_new_reward_rate_lower() {
        let current_rate = 1000;
        let new_rate = calculate_new_reward_rate(
            current_rate,
            TARGET_EPOCH_REWARDS.saturating_add(1_000_000_000),
        );
        assert!(new_rate.lt(&current_rate));
    }

    #[test]
    fn test_calculate_new_reward_rate_lower_edge() {
        let current_rate = BASE_REWARD_RATE_MIN_THRESHOLD;
        let new_rate = calculate_new_reward_rate(current_rate, TARGET_EPOCH_REWARDS + 1);
        assert!(new_rate.lt(&current_rate));
    }

    #[test]
    fn test_calculate_new_reward_rate_lower_fuzz() {
        let mut rng = rand::thread_rng();
        for _ in 0..FUZZ_SIZE {
            let current_rate: u64 = rng.sample(Uniform::new(1, BUS_EPOCH_REWARDS));
            let actual_rewards: u64 =
                rng.sample(Uniform::new(TARGET_EPOCH_REWARDS, MAX_EPOCH_REWARDS));
            let new_rate = calculate_new_reward_rate(current_rate, actual_rewards);
            assert!(new_rate.lt(&current_rate));
        }
    }

    #[test]
    fn test_calculate_new_reward_rate_higher() {
        let current_rate = 1000;
        let new_rate = calculate_new_reward_rate(
            current_rate,
            TARGET_EPOCH_REWARDS.saturating_sub(1_000_000_000),
        );
        assert!(new_rate.gt(&current_rate));
    }

    #[test]
    fn test_calculate_new_reward_rate_higher_fuzz() {
        let mut rng = rand::thread_rng();
        for _ in 0..FUZZ_SIZE {
            let current_rate: u64 = rng.sample(Uniform::new(1, BUS_EPOCH_REWARDS));
            let actual_rewards: u64 = rng.sample(Uniform::new(1, TARGET_EPOCH_REWARDS));
            let new_rate = calculate_new_reward_rate(current_rate, actual_rewards);
            assert!(new_rate.gt(&current_rate));
        }
    }

    #[test]
    fn test_calculate_new_reward_rate_max_smooth() {
        let current_rate = 1000;
        let new_rate = calculate_new_reward_rate(current_rate, 1);
        assert!(new_rate.eq(&current_rate.saturating_mul(SMOOTHING_FACTOR)));
    }

    #[test]
    fn test_calculate_new_reward_rate_min_smooth() {
        let current_rate = 1000;
        let new_rate = calculate_new_reward_rate(current_rate, u64::MAX);
        assert!(new_rate.eq(&current_rate.saturating_div(SMOOTHING_FACTOR)));
    }

    #[test]
    fn test_calculate_new_reward_rate_max_inputs() {
        let new_rate = calculate_new_reward_rate(BUS_EPOCH_REWARDS, MAX_EPOCH_REWARDS);
        assert!(new_rate.eq(&BUS_EPOCH_REWARDS.saturating_div(SMOOTHING_FACTOR)));
    }

    #[test]
    fn test_calculate_new_reward_rate_min_inputs() {
        let new_rate = calculate_new_reward_rate(1, 1);
        assert!(new_rate.eq(&1u64.saturating_mul(SMOOTHING_FACTOR)));
    }
}