feat: Check profitability before requesting batches (mvp) (#216)

* feat: check profitability before requesting batches (mvp)

* fix unit tests

* fix lint

* fix e2e

* cl++

* lint++

* Apply suggestions from code review

Co-authored-by: Aleksandr Bezobchuk <[email protected]>

* fix suggestions

Co-authored-by: Aleksandr Bezobchuk <[email protected]>
Co-authored-by: Aleksandr Bezobchuk <[email protected]>

CHANGELOG.md

@@ -43,6 +43,10 @@ Ref: https://keepachangelog.com/en/1.0.0/
 
 ## [Unreleased]
 
+### Features
+
+[#216](https://github.com/umee-network/peggo/pull/216) Add profitability check on the batch requester loop.
+
 ### Bug Fixes
 
 - [#217](https://github.com/umee-network/peggo/pull/217) Add validation to user input Ethereum addresses.

Dockerfile

@@ -12,12 +12,12 @@ RUN make install
 
 # Fetch umeed binary
 FROM golang:1.17-alpine AS umeed-builder
-ARG UMEE_VERSION=v0.7.1
+ARG UMEE_VERSION=v1.0.3
 ENV PACKAGES curl make git libc-dev bash gcc linux-headers eudev-dev
 RUN apk add --no-cache $PACKAGES
 WORKDIR /downloads/
 RUN git clone https://github.com/umee-network/umee.git
-RUN cd umee && git checkout ${UMEE_VERSION} && make build && cp ./build/umeed /usr/local/bin/
+RUN cd umee && git checkout ${UMEE_VERSION} && CGO_ENABLED=0 make build && cp ./build/umeed /usr/local/bin/
 
 # Add to a distroless container
 FROM gcr.io/distroless/cc:$IMG_TAG

cmd/peggo/orchestrator.go

@@ -234,6 +234,7 @@ func getOrchestratorCmd() *cobra.Command {
 				batchRequesterLoopDuration,
 				konfig.Int64(flagEthBlocksPerLoop),
 				konfig.Int64(flagBridgeStartHeight),
+				coingeckoFeed,
 			)
 
 			ctx, cancel = context.WithCancel(context.Background())

orchestrator/coingecko/coingecko.go

@@ -17,6 +17,7 @@ import (
 const (
 	maxRespTime        = 15 * time.Second
 	maxRespHeadersTime = 15 * time.Second
+	EthereumCoinID     = "ethereum"
 )
 
 var zeroPrice = float64(0)
@@ -98,7 +99,7 @@ func (cp *PriceFeed) QueryTokenUSDPrice(erc20Contract ethcmn.Address) (float64,
 		return cp.QueryUSDPriceByCoinID(coinID)
 	}
 
-	u, err := url.ParseRequestURI(urlJoin(cp.config.BaseURL, "simple", "token_price", "ethereum"))
+	u, err := url.ParseRequestURI(urlJoin(cp.config.BaseURL, "simple", "token_price", EthereumCoinID))
 	if err != nil {
 		cp.logger.Fatal().Err(err).Msg("failed to parse URL")
 	}

orchestrator/eth_event_watcher_test.go

@@ -164,6 +164,7 @@ func TestCheckForEvents(t *testing.T) {
 			time.Second,
 			100,
 			0,
+			nil,
 		)
 
 		currentBlock, err := orch.CheckForEvents(context.Background(), 1, 5)
@@ -244,6 +245,7 @@ func TestCheckForEvents(t *testing.T) {
 			time.Second,
 			100,
 			0,
+			nil,
 		)
 
 		currentBlock, err := orch.CheckForEvents(context.Background(), 1, 5)
@@ -351,6 +353,7 @@ func TestCheckForEvents(t *testing.T) {
 			time.Second,
 			100,
 			0,
+			nil,
 		)
 
 		currentBlock, err := orch.CheckForEvents(context.Background(), 1, 5)
@@ -472,6 +475,7 @@ func TestCheckForEvents(t *testing.T) {
 			time.Second,
 			100,
 			0,
+			nil,
 		)
 
 		currentBlock, err := orch.CheckForEvents(context.Background(), 1, 5)
@@ -607,6 +611,7 @@ func TestCheckForEvents(t *testing.T) {
 			time.Second,
 			100,
 			0,
+			nil,
 		)
 
 		currentBlock, err := orch.CheckForEvents(context.Background(), 1, 5)

orchestrator/main_loops.go

@@ -3,12 +3,16 @@ package orchestrator
 import (
 	"context"
 	"errors"
+	"fmt"
+	"math/big"
 	"time"
 
 	"github.com/avast/retry-go"
 	ethcmn "github.com/ethereum/go-ethereum/common"
+	"github.com/shopspring/decimal"
 	"github.com/umee-network/Gravity-Bridge/module/x/gravity/types"
 
+	"github.com/umee-network/peggo/orchestrator/coingecko"
 	"github.com/umee-network/peggo/orchestrator/loops"
 )
 
@@ -26,6 +30,28 @@ const (
 	ethSignerLoopMultiplier = 3
 )
 
+// estimatedGasCosts has a list of gas costs for batches from 1 to 100 txs.
+// They are used to estimate how much it will cost to relay a batch before
+// it is "built" and signed.
+// At the moment these values come from Umee's testnet data. It's in the roamap
+// to add a dynamic registry in which gas costs are updated and divided by
+// type of token (not all ERC20 are created equal, some may do some extra checks
+// in transfers).
+var estimatedGasCosts = []int64{
+	575563, 582863, 591565, 600967, 611968, 621532, 630328, 642386, 653063,
+	661581, 668183, 678635, 685289, 696851, 704866, 708887, 712721, 721445,
+	727461, 734690, 742043, 752750, 760223, 767272, 769101, 773423, 784019,
+	798268, 802351, 806362, 807763, 814683, 828969, 831213, 843207, 847569,
+	870002, 873950, 875285, 877254, 882126, 887008, 911510, 911901, 918882,
+	919109, 920685, 927237, 933757, 935638, 936261, 947621, 948716, 965708,
+	970508, 976337, 995011, 998407, 999148, 1016724, 1024643, 1035313,
+	1044177, 1046768, 1053295, 1053903, 1059293, 1073982, 1078022, 1078123,
+	1082061, 1084901, 1094332, 1103762, 1108249, 1114666, 1126675, 1136556,
+	1146072, 1154187, 1157889, 1159855, 1171010, 1172318, 1173955, 1181863,
+	1188274, 1191781, 1194480, 1209858, 1226168, 1227017, 1228247, 1234944,
+	1238819, 1244511, 1256137, 1258859, 1261745, 1261934,
+}
+
 // Start combines the all major roles required to make
 // up the Orchestrator, all of these are async loops.
 func (p *gravityOrchestrator) Start(ctx context.Context) error {
@@ -282,6 +308,11 @@ func (p *gravityOrchestrator) BatchRequesterLoop(ctx context.Context) (err error
 		// - broadcast Request batch
 		var pg loops.ParanoidGroup
 
+		usdEthPriceDec := decimal.NewFromFloat(0.0)
+		gasPrice := big.NewInt(0)
+		tokensPrices := make(map[string]decimal.Decimal)
+		tokensDecimals := make(map[string]uint8)
+
 		pg.Go(func() error {
 			var unbatchedTokensWithFees []types.BatchFees
 
@@ -294,6 +325,39 @@ func (p *gravityOrchestrator) BatchRequesterLoop(ctx context.Context) (err error
 
 				unbatchedTokensWithFees = batchFeesResp.GetBatchFees()
 
+				if p.relayer.GetProfitMultiplier() > 0.0 {
+					gasPrice, err = p.ethProvider.SuggestGasPrice(context.Background())
+					if err != nil {
+						return fmt.Errorf("failed to get Ethereum gas estimate: %w", err)
+					}
+
+					usdEthPrice, err := p.priceFeeder.QueryUSDPriceByCoinID(coingecko.EthereumCoinID)
+					if err != nil {
+						return err
+					}
+
+					usdEthPriceDec = decimal.NewFromFloat(usdEthPrice)
+
+					for _, token := range unbatchedTokensWithFees {
+						if _, ok := tokensPrices[token.Token]; !ok {
+							price, err := p.priceFeeder.QueryTokenUSDPrice(ethcmn.HexToAddress(token.Token))
+							if err != nil {
+								return err
+							}
+
+							tokensPrices[token.Token] = decimal.NewFromFloat(price)
+
+							tokensDecimals[token.Token], err = p.gravityContract.GetERC20Decimals(
+								ctx,
+								ethcmn.HexToAddress(token.Token),
+								p.gravityContract.FromAddress(),
+							)
+							if err != nil {
+								return err
+							}
+						}
+					}
+				}
 				return
 			}, retry.Context(ctx), retry.OnRetry(func(n uint, err error) {
 				logger.Err(err).Uint("retry", n).Msg("failed to get UnbatchedTokensWithFees; retrying...")
@@ -314,10 +378,35 @@ func (p *gravityOrchestrator) BatchRequesterLoop(ctx context.Context) (err error
 					return nil
 				}
 
-				logger.Info().Str("token_contract", tokenAddr.String()).Str("denom", denom).Msg("sending batch request")
+				shouldRequestBatch := true
+
+				if p.relayer.GetProfitMultiplier() > 0.0 {
+					// First we get the cost of the transaction in USD
+					totalETHcost := big.NewInt(0).Mul(gasPrice, big.NewInt(estimatedGasCosts[unbatchedToken.TxCount-1]))
+					// Ethereum decimals are 18 and that's a constant.
+					gasCostInUSDDec := decimal.NewFromBigInt(totalETHcost, -18).Mul(usdEthPriceDec)
+					// Decimals (uint8) can be safely casted into int32 because the max uint8 is 255 and the max int32 is 2147483647.
+					totalFeeInUSDDec := decimal.NewFromBigInt(
+						unbatchedToken.TotalFees.BigInt(),
+						-int32(tokensDecimals[unbatchedToken.Token]),
+					).Mul(tokensPrices[unbatchedToken.Token])
+
+					// Simplified: totalFee > (gasCost * profitMultiplier).
+					profitMult := decimal.NewFromFloat(p.relayer.GetProfitMultiplier())
+					shouldRequestBatch = totalFeeInUSDDec.GreaterThanOrEqual(gasCostInUSDDec.Mul(profitMult))
+				}
 
-				if err := p.gravityBroadcastClient.SendRequestBatch(ctx, denom); err != nil {
-					logger.Err(err).Msg("failed to send batch request")
+				if shouldRequestBatch {
+					logger.Info().Str("token_contract", tokenAddr.String()).Str("denom", denom).Msg("sending batch request")
+
+					if err := p.gravityBroadcastClient.SendRequestBatch(ctx, denom); err != nil {
+						logger.Err(err).Msg("failed to send batch request")
+					}
+				} else {
+					logger.Debug().
+						Str("token_contract", tokenAddr.String()).
+						Str("denom", denom).
+						Msg("not profitable yet, skipping batch creation")
 				}
 			}
 

orchestrator/oracle_resync_test.go

@@ -158,6 +158,7 @@ func TestGetLastCheckedBlock(t *testing.T) {
 			time.Second,
 			100,
 			0,
+			nil,
 		)
 
 		block, err := orch.GetLastCheckedBlock(context.Background(), 0)

orchestrator/orchestrator.go

@@ -9,6 +9,7 @@ import (
 	"github.com/rs/zerolog"
 	gravitytypes "github.com/umee-network/Gravity-Bridge/module/x/gravity/types"
 
+	"github.com/umee-network/peggo/orchestrator/coingecko"
 	sidechain "github.com/umee-network/peggo/orchestrator/cosmos"
 	gravity "github.com/umee-network/peggo/orchestrator/ethereum/gravity"
 	"github.com/umee-network/peggo/orchestrator/ethereum/keystore"
@@ -41,6 +42,7 @@ type gravityOrchestrator struct {
 	batchRequesterLoopDuration time.Duration
 	ethBlocksPerLoop           uint64
 	bridgeStartHeight          uint64
+	priceFeeder                *coingecko.PriceFeed
 
 	mtx             sync.Mutex
 	erc20DenomCache map[string]string
@@ -60,6 +62,7 @@ func NewGravityOrchestrator(
 	batchRequesterLoopDuration time.Duration,
 	ethBlocksPerLoop int64,
 	bridgeStartHeight int64,
+	priceFeeder *coingecko.PriceFeed,
 	options ...func(GravityOrchestrator),
 ) GravityOrchestrator {
 
@@ -78,6 +81,7 @@ func NewGravityOrchestrator(
 		batchRequesterLoopDuration: batchRequesterLoopDuration,
 		ethBlocksPerLoop:           uint64(ethBlocksPerLoop),
 		bridgeStartHeight:          uint64(bridgeStartHeight),
+		priceFeeder:                priceFeeder,
 	}
 
 	for _, option := range options {

orchestrator/relayer/batch_relaying.go

@@ -8,6 +8,7 @@ import (
 	ethcmn "github.com/ethereum/go-ethereum/common"
 	"github.com/shopspring/decimal"
 	"github.com/umee-network/Gravity-Bridge/module/x/gravity/types"
+	"github.com/umee-network/peggo/orchestrator/coingecko"
 )
 
 type SubmittableBatch struct {
@@ -220,7 +221,7 @@ func (s *gravityRelayer) IsBatchProfitable(
 	}
 
 	// First we get the cost of the transaction in USD
-	usdEthPrice, err := s.priceFeeder.QueryUSDPriceByCoinID("ethereum")
+	usdEthPrice, err := s.priceFeeder.QueryUSDPriceByCoinID(coingecko.EthereumCoinID)
 	if err != nil {
 		s.logger.Err(err).Msg("failed to get ETH price")
 		return false

orchestrator/relayer/relayer.go

@@ -45,6 +45,8 @@ type GravityRelayer interface {
 	// SetPriceFeeder sets the (optional) price feeder used when performing profitable
 	// batch calculations.
 	SetPriceFeeder(*coingecko.PriceFeed)
+
+	GetProfitMultiplier() float64
 }
 
 type gravityRelayer struct {
@@ -94,3 +96,7 @@ func NewGravityRelayer(
 
 	return relayer
 }
+
+func (s *gravityRelayer) GetProfitMultiplier() float64 {
+	return s.profitMultiplier
+}