granite-math-sdk

import { computeUtilizationRate, calculateDueInterest, compoundedInterest, calculateBorrowAPY, userAvailableToBorrow, calculateMaxRepayAmount, annualizedAPR, protocolAvailableToBorrow, calculateBorrowCapacity, convertDebtAssetsToShares, convertDebtSharesToAssets, InterestRateParams, } from "../../src"; import { createCollateral } from "../utils"; describe("Borrow and Debt Module", () => { const defaultIrParams: InterestRateParams = { urKink: 0.7, baseIR: 0.5, slope1: 0.75, slope2: 1.5, }; // -------------- Utilization Rate Tests -------------- describe("Utilization Rate", () => { it("calculates standard utilization rate", () => { expect(computeUtilizationRate(10, 100)).toBe(0.1); expect(computeUtilizationRate(101, 100)).toBe(1.01); }); it("handles zero total assets", () => { expect(computeUtilizationRate(10, 0)).toBe(0); }); it("handles zero open interest", () => { expect(computeUtilizationRate(0, 100)).toBe(0); }); }); // -------------- Interest Calculations Tests -------------- describe("Interest Calculations", () => { it("calculates due interest correctly", () => { expect( calculateDueInterest(1, 500, 500, defaultIrParams, 6000), ).toBeCloseTo(1.0002853); }); it("calculates compounded interest correctly", () => { const interest = compoundedInterest(1, 500, 500, defaultIrParams, 6000); const principal = calculateDueInterest( 1, 500, 500, defaultIrParams, 6000, ); expect(principal - interest).toBe(1); }); it("handles zero time delta", () => { expect(compoundedInterest(1000, 500, 500, defaultIrParams, 0)).toBe(0); }); it("handles zero debt amount", () => { expect(compoundedInterest(0, 500, 500, defaultIrParams, 6000)).toBe(0); }); }); // -------------- APR and APY Tests -------------- describe("APR and APY Calculations", () => { it("calculates annualized APR below kink", () => { const ur = 0.5; // Below kink of 0.7 const apr = annualizedAPR(ur, defaultIrParams); expect(apr).toBe(defaultIrParams.baseIR + defaultIrParams.slope1 * ur); }); it("calculates annualized APR above kink", () => { const ur = 0.8; // Above kink of 0.7 const apr = annualizedAPR(ur, defaultIrParams); const expectedApr = defaultIrParams.slope2 * (ur - defaultIrParams.urKink) + defaultIrParams.slope1 * defaultIrParams.urKink + defaultIrParams.baseIR; expect(apr).toBe(expectedApr); }); it("calculates annualized APR at kink point", () => { const ur = defaultIrParams.urKink; const apr = annualizedAPR(ur, defaultIrParams); expect(apr).toBe(defaultIrParams.baseIR + defaultIrParams.slope1 * ur); }); it("calculates borrow APY from base rate", () => { const ur = 0; const result = calculateBorrowAPY(ur, defaultIrParams); expect(result).toBeGreaterThan(defaultIrParams.baseIR); }); }); // -------------- Debt Share Conversion Tests -------------- describe("Debt Share Conversions", () => { it("converts debt assets to shares correctly", () => { const result = convertDebtAssetsToShares( 1000, // debtAssets 10000, // totalDebtShares 20000, // totalAssets 10000, // openInterest 0.1, // protocolReservePercentage defaultIrParams, 3600, // 1 hour ); expect(result).toBeGreaterThan(0); expect(result).toBeLessThan(1000); // Should be less due to interest accrual }); it("returns 0 when total assets is 0", () => { const result = convertDebtAssetsToShares( 1000, 10000, 0, // totalAssets = 0 10000, 0.1, defaultIrParams, 3600, ); expect(result).toBe(0); }); it("handles zero debt assets", () => { const result = convertDebtAssetsToShares( 0, 10000, 20000, 10000, 0.1, defaultIrParams, 3600, ); expect(result).toBe(0); }); it("handles different protocol reserve percentages", () => { const withReserve = convertDebtAssetsToShares( 1000, 10000, 20000, 10000, 0.1, defaultIrParams, 3600, ); const withoutReserve = convertDebtAssetsToShares( 1000, 10000, 20000, 10000, 0, defaultIrParams, 3600, ); expect(withReserve).toBeGreaterThan(withoutReserve); }); it("converts debt shares to assets correctly", () => { const result = convertDebtSharesToAssets( 1000, // debtShares 10000, // openInterest 10000, // totalDebtShares 20000, // totalAssets defaultIrParams, 3600, // 1 hour ); expect(result).toBeGreaterThan(1000); // Should be more due to interest accrual }); it("returns 0 when total debt shares is 0", () => { const result = convertDebtSharesToAssets( 1000, 10000, 0, // totalDebtShares = 0 20000, defaultIrParams, 3600, ); expect(result).toBe(0); }); it("handles different utilization rates", () => { const lowUtilization = convertDebtSharesToAssets( 1000, 1000, // openInterest 10000, 100000, // totalAssets (1% utilization) defaultIrParams, 3600, ); const highUtilization = convertDebtSharesToAssets( 1000, 80000, // openInterest 10000, 100000, // totalAssets (80% utilization) defaultIrParams, 3600, ); expect(highUtilization).toBeGreaterThan(lowUtilization); }); it("maintains conversion relationship", () => { const initialAssets = 1000; const shares = convertDebtAssetsToShares( initialAssets, 10000, 20000, 10000, 0, defaultIrParams, 3600, ); const finalAssets = convertDebtSharesToAssets( shares, 10000, 10000, 20000, defaultIrParams, 3600, ); expect(finalAssets).toBeCloseTo(initialAssets); }); }); // -------------- Borrow Capacity and Availability Tests -------------- describe("Borrow Capacity and Availability", () => { it("calculates borrow capacity correctly", () => { const collaterals = [createCollateral(100, 1, 0.5)]; expect(calculateBorrowCapacity(collaterals)).toBe(50); }); it("throws error for undefined maxLTV", () => { const collaterals = [ { amount: 100, price: 1, }, ]; expect(() => calculateBorrowCapacity(collaterals)).toThrow( "Collateral max LTV is not defined", ); }); it("handles empty collateral list", () => { expect(calculateBorrowCapacity([])).toBe(0); }); it("calculates protocol available to borrow", () => { expect(protocolAvailableToBorrow(100, 20)).toBe(80); expect(protocolAvailableToBorrow(100, 100)).toBe(0); expect(protocolAvailableToBorrow(100, 120)).toBe(0); }); it("userAvailableToBorrow takes into account current debt", () => { const collaterals = [createCollateral(100, 1, 0.5)]; const freeLiquidity = 100; expect(userAvailableToBorrow(collaterals, freeLiquidity, 0, 40)).toBe(10); }); it("userAvailableToBorrow is capped by free liquidity", () => { const collaterals = [createCollateral(100, 1, 0.5)]; const freeLiquidity = 9; const reserveBalance = 1; const result = userAvailableToBorrow( collaterals, freeLiquidity, reserveBalance, 40, ); expect(result).toBe(8); }); }); // -------------- Repayment Calculations Tests -------------- describe("Max Repay Calculations", () => { it("calculates max repay correctly", () => { const result = calculateMaxRepayAmount( 1000, // debtShares 10000, // openInterest 10000, // totalDebtShares 20000, // totalAssets defaultIrParams, 2592000, // seconds in one month ); expect(result).toBeCloseTo(1074.596, 3); }); it("handles zero debt shares", () => { const result = calculateMaxRepayAmount( 0, 10000, 10000, 20000, defaultIrParams, 2592000, ); expect(result).toBe(0); }); it("handles zero total debt shares", () => { const result = calculateMaxRepayAmount( 1000, 10000, 0, 20000, defaultIrParams, 2592000, ); expect(result).toBe(0); }); }); });