liquidation: Add flag to disable asset liquidation (#867)

This can be used to remove the oracle dependency for tokens with zero maint asset
weight that are not borrowable.

bin/liquidator/src/liquidate.rs

@@ -370,11 +370,11 @@ impl<'a> LiquidateHelper<'a> {
             .filter_map(|(ti, effective)| {
                 // check constraints for liquidatable assets, see also has_possible_spot_liquidations()
                 let tokens = ti.balance_spot.min(effective.spot_and_perp);
-                let is_valid_asset = tokens >= 1;
+                let is_valid_asset = tokens >= 1 && ti.allow_asset_liquidation;
                 let quote_value = tokens * ti.prices.oracle;
                 // prefer to liquidate tokens with asset weight that have >$1 liquidatable
                 let is_preferred =
-                    ti.init_asset_weight > 0 && quote_value > I80F48::from(1_000_000);
+                    ti.maint_asset_weight > 0 && quote_value > I80F48::from(1_000_000);
                 is_valid_asset.then_some((ti.token_index, is_preferred, quote_value))
             })
             .collect_vec();

mango_v4.json

@@ -631,6 +631,10 @@
         {
           "name": "platformLiquidationFee",
           "type": "f32"
+        },
+        {
+          "name": "disableAssetLiquidation",
+          "type": "bool"
         }
       ]
     },
@@ -1041,6 +1045,12 @@
           "type": {
             "option": "f32"
           }
+        },
+        {
+          "name": "disableAssetLiquidationOpt",
+          "type": {
+            "option": "bool"
+          }
         }
       ]
     },
@@ -7373,12 +7383,20 @@
             "name": "forceClose",
             "type": "u8"
           },
+          {
+            "name": "disableAssetLiquidation",
+            "docs": [
+              "If set to 1, deposits cannot be liquidated when an account is liquidatable.",
+              "That means bankrupt accounts may still have assets of this type deposited."
+            ],
+            "type": "u8"
+          },
           {
             "name": "padding",
             "type": {
               "array": [
                 "u8",
-                6
+                5
               ]
             }
           },
@@ -14028,6 +14046,11 @@
       "code": 6068,
       "name": "MissingFeedForCLMMOracle",
       "msg": "Pyth USDC/USD or SOL/USD feed not found (required by CLMM oracle)"
+    },
+    {
+      "code": 6069,
+      "name": "TokenAssetLiquidationDisabled",
+      "msg": "the asset does not allow liquidation"
     }
   ]
 }

programs/mango-v4/src/error.rs

@@ -143,6 +143,8 @@ pub enum MangoError {
     InvalidFeedForCLMMOracle,
     #[msg("Pyth USDC/USD or SOL/USD feed not found (required by CLMM oracle)")]
     MissingFeedForCLMMOracle,
+    #[msg("the asset does not allow liquidation")]
+    TokenAssetLiquidationDisabled,
 }
 
 impl MangoError {

programs/mango-v4/src/health/cache.rs

@@ -175,6 +175,8 @@ pub struct TokenInfo {
     /// Includes TokenPosition and free Serum3OpenOrders balances.
     /// Does not include perp upnl or Serum3 reserved amounts.
     pub balance_spot: I80F48,
+
+    pub allow_asset_liquidation: bool,
 }
 
 /// Temporary value used during health computations
@@ -907,6 +909,7 @@ impl HealthCache {
     }
 
     /// Liquidatable spot assets mean: actual token deposits and also a positive effective token balance
+    /// and is available for asset liquidation
     pub fn has_liq_spot_assets(&self) -> bool {
         let health_token_balances = self.effective_token_balances(HealthType::LiquidationEnd);
         self.token_infos
@@ -914,11 +917,11 @@ impl HealthCache {
             .zip(health_token_balances.iter())
             .any(|(ti, b)| {
                 // need 1 native token to use token_liq_with_token
-                ti.balance_spot >= 1 && b.spot_and_perp >= 1
+                ti.balance_spot >= 1 && b.spot_and_perp >= 1 && ti.allow_asset_liquidation
             })
     }
 
-    /// Liquidatable spot borrows mean: actual toen borrows plus a negative effective token balance
+    /// Liquidatable spot borrows mean: actual token borrows plus a negative effective token balance
     pub fn has_liq_spot_borrows(&self) -> bool {
         let health_token_balances = self.effective_token_balances(HealthType::LiquidationEnd);
         self.token_infos
@@ -932,7 +935,9 @@ impl HealthCache {
         let health_token_balances = self.effective_token_balances(HealthType::LiquidationEnd);
         let all_iter = || self.token_infos.iter().zip(health_token_balances.iter());
         all_iter().any(|(ti, b)| ti.balance_spot < 0 && b.spot_and_perp < 0)
-            && all_iter().any(|(ti, b)| ti.balance_spot >= 1 && b.spot_and_perp >= 1)
+            && all_iter().any(|(ti, b)| {
+                ti.balance_spot >= 1 && b.spot_and_perp >= 1 && ti.allow_asset_liquidation
+            })
     }
 
     pub fn has_serum3_open_orders_funds(&self) -> bool {
@@ -1286,6 +1291,7 @@ fn new_health_cache_impl(
             init_scaled_liab_weight: bank.scaled_init_liab_weight(liab_price),
             prices,
             balance_spot: native,
+            allow_asset_liquidation: bank.allows_asset_liquidation(),
         });
     }
 

programs/mango-v4/src/health/client.rs

@@ -682,6 +682,7 @@ mod tests {
             init_scaled_liab_weight: I80F48::from_num(1.0 + x),
             prices: Prices::new_single_price(I80F48::from_num(price)),
             balance_spot: I80F48::ZERO,
+            allow_asset_liquidation: true,
         }
     }
 

programs/mango-v4/src/instructions/token_edit.rs

@@ -53,6 +53,7 @@ pub fn token_edit(
     deposit_limit_opt: Option<u64>,
     zero_util_rate: Option<f32>,
     platform_liquidation_fee: Option<f32>,
+    disable_asset_liquidation_opt: Option<bool>,
 ) -> Result<()> {
     let group = ctx.accounts.group.load()?;
 
@@ -484,6 +485,16 @@ pub fn token_edit(
             bank.platform_liquidation_fee = I80F48::from_num(platform_liquidation_fee);
             require_group_admin = true;
         }
+
+        if let Some(disable_asset_liquidation) = disable_asset_liquidation_opt {
+            msg!(
+                "Asset liquidation disabled old {:?}, new {:?}",
+                bank.disable_asset_liquidation,
+                disable_asset_liquidation
+            );
+            bank.disable_asset_liquidation = u8::from(disable_asset_liquidation);
+            require_group_admin = true;
+        }
     }
 
     // account constraint #1

programs/mango-v4/src/instructions/token_liq_with_token.rs

@@ -112,6 +112,10 @@ pub(crate) fn liquidation_action(
         liqee.token_position_and_raw_index(asset_token_index)?;
     let liqee_asset_native = liqee_asset_position.native(asset_bank);
     require_gt!(liqee_asset_native, 0);
+    require!(
+        asset_bank.allows_asset_liquidation(),
+        MangoError::TokenAssetLiquidationDisabled
+    );
 
     let (liqee_liab_position, liqee_liab_raw_index) =
         liqee.token_position_and_raw_index(liab_token_index)?;

programs/mango-v4/src/instructions/token_register.rs

@@ -44,6 +44,7 @@ pub fn token_register(
     deposit_limit: u64,
     zero_util_rate: f32,
     platform_liquidation_fee: f32,
+    disable_asset_liquidation: bool,
 ) -> Result<()> {
     // Require token 0 to be in the insurance token
     if token_index == INSURANCE_TOKEN_INDEX {
@@ -109,6 +110,7 @@ pub fn token_register(
         deposit_weight_scale_start_quote,
         reduce_only,
         force_close: 0,
+        disable_asset_liquidation: u8::from(disable_asset_liquidation),
         padding: Default::default(),
         fees_withdrawn: 0,
         token_conditional_swap_taker_fee_rate,

programs/mango-v4/src/instructions/token_register_trustless.rs

@@ -90,6 +90,7 @@ pub fn token_register_trustless(
         deposit_weight_scale_start_quote: 5_000_000_000.0, // $5k
         reduce_only: 2,                                   // deposit-only
         force_close: 0,
+        disable_asset_liquidation: 1,
         padding: Default::default(),
         fees_withdrawn: 0,
         token_conditional_swap_taker_fee_rate: 0.0,

programs/mango-v4/src/lib.rs

@@ -157,6 +157,7 @@ pub mod mango_v4 {
         deposit_limit: u64,
         zero_util_rate: f32,
         platform_liquidation_fee: f32,
+        disable_asset_liquidation: bool,
     ) -> Result<()> {
         #[cfg(feature = "enable-gpl")]
         instructions::token_register(
@@ -190,6 +191,7 @@ pub mod mango_v4 {
             deposit_limit,
             zero_util_rate,
             platform_liquidation_fee,
+            disable_asset_liquidation,
         )?;
         Ok(())
     }
@@ -245,6 +247,7 @@ pub mod mango_v4 {
         deposit_limit_opt: Option<u64>,
         zero_util_rate_opt: Option<f32>,
         platform_liquidation_fee_opt: Option<f32>,
+        disable_asset_liquidation_opt: Option<bool>,
     ) -> Result<()> {
         #[cfg(feature = "enable-gpl")]
         instructions::token_edit(
@@ -287,6 +290,7 @@ pub mod mango_v4 {
             deposit_limit_opt,
             zero_util_rate_opt,
             platform_liquidation_fee_opt,
+            disable_asset_liquidation_opt,
         )?;
         Ok(())
     }

programs/mango-v4/src/state/bank.rs

@@ -158,8 +158,12 @@ pub struct Bank {
     pub reduce_only: u8,
     pub force_close: u8,
 
+    /// If set to 1, deposits cannot be liquidated when an account is liquidatable.
+    /// That means bankrupt accounts may still have assets of this type deposited.
+    pub disable_asset_liquidation: u8,
+
     #[derivative(Debug = "ignore")]
-    pub padding: [u8; 6],
+    pub padding: [u8; 5],
 
     // Do separate bookkeping for how many tokens were withdrawn
     // This ensures that collected_fees_native is strictly increasing for stats gathering purposes
@@ -346,7 +350,8 @@ impl Bank {
             deposit_weight_scale_start_quote: existing_bank.deposit_weight_scale_start_quote,
             reduce_only: existing_bank.reduce_only,
             force_close: existing_bank.force_close,
-            padding: [0; 6],
+            disable_asset_liquidation: existing_bank.disable_asset_liquidation,
+            padding: [0; 5],
             token_conditional_swap_taker_fee_rate: existing_bank
                 .token_conditional_swap_taker_fee_rate,
             token_conditional_swap_maker_fee_rate: existing_bank
@@ -396,6 +401,10 @@ impl Bank {
         require_gte!(self.maint_weight_shift_liab_target, 0.0);
         require_gte!(self.zero_util_rate, I80F48::ZERO);
         require_gte!(self.platform_liquidation_fee, 0.0);
+        if !self.allows_asset_liquidation() {
+            require!(self.are_borrows_reduce_only(), MangoError::SomeError);
+            require_eq!(self.maint_asset_weight, I80F48::ZERO);
+        }
         Ok(())
     }
 
@@ -417,6 +426,10 @@ impl Bank {
         self.force_close == 1
     }
 
+    pub fn allows_asset_liquidation(&self) -> bool {
+        self.disable_asset_liquidation == 0
+    }
+
     #[inline(always)]
     pub fn native_borrows(&self) -> I80F48 {
         self.borrow_index * self.indexed_borrows

programs/mango-v4/tests/cases/test_liq_tokens.rs

@@ -324,6 +324,66 @@ async fn test_liq_tokens_with_token() -> Result<(), TransportError> {
     //
     set_bank_stub_oracle_price(solana, group, borrow_token1, admin, 2.0).await;
 
+    //
+    // TEST: can't liquidate if token has no asset weight
+    //
+
+    send_tx(
+        solana,
+        TokenEdit {
+            group,
+            admin,
+            mint: collateral_token2.mint.pubkey,
+            fallback_oracle: Pubkey::default(),
+            options: mango_v4::instruction::TokenEdit {
+                maint_asset_weight_opt: Some(0.0),
+                init_asset_weight_opt: Some(0.0),
+                disable_asset_liquidation_opt: Some(true),
+                reduce_only_opt: Some(1),
+                ..token_edit_instruction_default()
+            },
+        },
+    )
+    .await
+    .unwrap();
+    let res = send_tx(
+        solana,
+        TokenLiqWithTokenInstruction {
+            liqee: account,
+            liqor: vault_account,
+            liqor_owner: owner,
+            asset_token_index: collateral_token2.index,
+            liab_token_index: borrow_token2.index,
+            asset_bank_index: 0,
+            liab_bank_index: 0,
+            max_liab_transfer: I80F48::from_num(10000.0),
+        },
+    )
+    .await;
+    assert_mango_error(
+        &res,
+        MangoError::TokenAssetLiquidationDisabled.into(),
+        "liquidation disabled".to_string(),
+    );
+    send_tx(
+        solana,
+        TokenEdit {
+            group,
+            admin,
+            mint: collateral_token2.mint.pubkey,
+            fallback_oracle: Pubkey::default(),
+            options: mango_v4::instruction::TokenEdit {
+                maint_asset_weight_opt: Some(0.8),
+                init_asset_weight_opt: Some(0.6),
+                disable_asset_liquidation_opt: Some(false),
+                reduce_only_opt: Some(0),
+                ..token_edit_instruction_default()
+            },
+        },
+    )
+    .await
+    .unwrap();
+
     //
     // TEST: liquidate borrow2 against too little collateral2
     //

programs/mango-v4/tests/program_test/mango_client.rs

@@ -1077,6 +1077,7 @@ impl ClientInstruction for TokenRegisterInstruction {
             deposit_limit: 0,
             zero_util_rate: 0.0,
             platform_liquidation_fee: self.platform_liquidation_fee,
+            disable_asset_liquidation: false,
         };
 
         let bank = Pubkey::find_program_address(
@@ -1324,6 +1325,7 @@ pub fn token_edit_instruction_default() -> mango_v4::instruction::TokenEdit {
         deposit_limit_opt: None,
         zero_util_rate_opt: None,
         platform_liquidation_fee_opt: None,
+        disable_asset_liquidation_opt: None,
     }
 }
 

ts/client/src/accounts/bank.ts

@@ -130,6 +130,7 @@ export class Bank implements BankForHealth {
       depositWeightScaleStartQuote: number;
       reduceOnly: number;
       forceClose: number;
+      disableAssetLiquidation: number;
       feesWithdrawn: BN;
       tokenConditionalSwapTakerFeeRate: number;
       tokenConditionalSwapMakerFeeRate: number;
@@ -211,6 +212,7 @@ export class Bank implements BankForHealth {
       obj.zeroUtilRate,
       obj.platformLiquidationFee,
       obj.collectedLiquidationFees,
+      obj.disableAssetLiquidation == 0,
     );
   }
 
@@ -276,6 +278,7 @@ export class Bank implements BankForHealth {
     zeroUtilRate: I80F48Dto,
     platformLiquidationFee: I80F48Dto,
     collectedLiquidationFees: I80F48Dto,
+    public allowAssetLiquidation: boolean,
   ) {
     this.name = utf8.decode(new Uint8Array(name)).split('\x00')[0];
     this.oracleConfig = {

ts/client/src/client.ts

@@ -461,6 +461,7 @@ export class MangoClient {
         params.depositLimit,
         params.zeroUtilRate,
         params.platformLiquidationFee,
+        params.disableAssetLiquidation,
       )
       .accounts({
         group: group.publicKey,
@@ -548,6 +549,7 @@ export class MangoClient {
         params.depositLimit,
         params.zeroUtilRate,
         params.platformLiquidationFee,
+        params.disableAssetLiquidation,
       )
       .accounts({
         group: group.publicKey,

ts/client/src/clientIxParamBuilder.ts

@@ -30,6 +30,7 @@ export interface TokenRegisterParams {
   depositLimit: BN;
   zeroUtilRate: number;
   platformLiquidationFee: number;
+  disableAssetLiquidation: boolean;
 }
 
 export const DefaultTokenRegisterParams: TokenRegisterParams = {
@@ -70,6 +71,7 @@ export const DefaultTokenRegisterParams: TokenRegisterParams = {
   depositLimit: new BN(0),
   zeroUtilRate: 0.0,
   platformLiquidationFee: 0.0,
+  disableAssetLiquidation: false,
 };
 
 export interface TokenEditParams {
@@ -111,6 +113,7 @@ export interface TokenEditParams {
   depositLimit: BN | null;
   zeroUtilRate: number | null;
   platformLiquidationFee: number | null;
+  disableAssetLiquidation: boolean | null;
 }
 
 export const NullTokenEditParams: TokenEditParams = {
@@ -152,6 +155,7 @@ export const NullTokenEditParams: TokenEditParams = {
   depositLimit: null,
   zeroUtilRate: null,
   platformLiquidationFee: null,
+  disableAssetLiquidation: null,
 };
 
 export interface PerpEditParams {

ts/client/src/mango_v4.ts

@@ -631,6 +631,10 @@ export type MangoV4 = {
         {
           "name": "platformLiquidationFee",
           "type": "f32"
+        },
+        {
+          "name": "disableAssetLiquidation",
+          "type": "bool"
         }
       ]
     },
@@ -1041,6 +1045,12 @@ export type MangoV4 = {
           "type": {
             "option": "f32"
           }
+        },
+        {
+          "name": "disableAssetLiquidationOpt",
+          "type": {
+            "option": "bool"
+          }
         }
       ]
     },
@@ -7373,12 +7383,20 @@ export type MangoV4 = {
             "name": "forceClose",
             "type": "u8"
           },
+          {
+            "name": "disableAssetLiquidation",
+            "docs": [
+              "If set to 1, deposits cannot be liquidated when an account is liquidatable.",
+              "That means bankrupt accounts may still have assets of this type deposited."
+            ],
+            "type": "u8"
+          },
           {
             "name": "padding",
             "type": {
               "array": [
                 "u8",
-                6
+                5
               ]
             }
           },
@@ -14028,6 +14046,11 @@ export type MangoV4 = {
       "code": 6068,
       "name": "MissingFeedForCLMMOracle",
       "msg": "Pyth USDC/USD or SOL/USD feed not found (required by CLMM oracle)"
+    },
+    {
+      "code": 6069,
+      "name": "TokenAssetLiquidationDisabled",
+      "msg": "the asset does not allow liquidation"
     }
   ]
 };
@@ -14665,6 +14688,10 @@ export const IDL: MangoV4 = {
         {
           "name": "platformLiquidationFee",
           "type": "f32"
+        },
+        {
+          "name": "disableAssetLiquidation",
+          "type": "bool"
         }
       ]
     },
@@ -15075,6 +15102,12 @@ export const IDL: MangoV4 = {
           "type": {
             "option": "f32"
           }
+        },
+        {
+          "name": "disableAssetLiquidationOpt",
+          "type": {
+            "option": "bool"
+          }
         }
       ]
     },
@@ -21407,12 +21440,20 @@ export const IDL: MangoV4 = {
             "name": "forceClose",
             "type": "u8"
           },
+          {
+            "name": "disableAssetLiquidation",
+            "docs": [
+              "If set to 1, deposits cannot be liquidated when an account is liquidatable.",
+              "That means bankrupt accounts may still have assets of this type deposited."
+            ],
+            "type": "u8"
+          },
           {
             "name": "padding",
             "type": {
               "array": [
                 "u8",
-                6
+                5
               ]
             }
           },
@@ -28062,6 +28103,11 @@ export const IDL: MangoV4 = {
       "code": 6068,
       "name": "MissingFeedForCLMMOracle",
       "msg": "Pyth USDC/USD or SOL/USD feed not found (required by CLMM oracle)"
+    },
+    {
+      "code": 6069,
+      "name": "TokenAssetLiquidationDisabled",
+      "msg": "the asset does not allow liquidation"
     }
   ]
 };