Skip redemption positions where LTV > 1

Author: evgeny-stakewise

src/common/contracts.py

@@ -232,6 +232,25 @@ async def is_state_update_required(self, block_number: BlockNumber | None = None
             block_identifier=block_number
         )
 
+    async def get_os_token_position(
+        self, owner: ChecksumAddress, block_number: BlockNumber | None = None
+    ) -> Wei:
+        return Wei(
+            await self.contract.functions.osTokenPositions(owner).call(
+                block_identifier=block_number
+            )
+        )
+
+    async def get_user_assets(
+        self, owner: ChecksumAddress, block_number: BlockNumber | None = None
+    ) -> Wei:
+        shares = await self.contract.functions.getShares(owner).call(block_identifier=block_number)
+        return Wei(
+            await self.contract.functions.convertToAssets(shares).call(
+                block_identifier=block_number
+            )
+        )
+
     async def version(self) -> int:
         return await self.contract.functions.version().call()
 

src/redemptions/commands/process_redeemer.py

@@ -45,7 +45,7 @@
     OsTokenConverter,
     create_os_token_converter,
 )
-from src.redemptions.tasks import assign_shares_to_redeem
+from src.redemptions.tasks import assign_shares_to_redeem, is_position_ltv_exceeded
 from src.redemptions.typings import OsTokenPosition
 from src.validators.execution import get_withdrawable_assets
 
@@ -329,6 +329,10 @@ async def redeem_positions(
         if position.vault in unharvested_vaults:
             continue
 
+        if await is_position_ltv_exceeded(position, converter, block_number):
+            logger.info('Skipping position index=%d: LTV > 1', position.index)
+            continue
+
         if position.vault not in vault_to_withdrawable:
             if await VaultContract(position.vault).is_state_update_required(block_number):
                 logger.info('Skipping unharvested vault %s', position.vault)

src/redemptions/commands/tests/test_process_redeemer.py

@@ -168,6 +168,21 @@ async def test_unharvested_vault_skipped(self) -> None:
         mocks['get_withdrawable'].assert_not_called()
         mocks['submit_mock'].assert_not_called()
 
+    async def test_ltv_exceeded_position_skipped(self) -> None:
+        """A position where loan > user_assets (LTV > 1) is skipped without redeeming."""
+        pos = make_position(processed_shares=500)
+
+        with _mock_redeem_positions(withdrawable=Wei(10000), ltv_exceeded=True) as mocks:
+            await redeem_positions(
+                tree=make_tree([pos]),
+                os_token_positions=[pos],
+                converter=make_converter(100, 100),
+                block_number=BlockNumber(100),
+            )
+
+        mocks['submit_mock'].assert_not_called()
+        mocks['get_withdrawable'].assert_not_called()
+
     async def test_submit_failure_skips_position(self) -> None:
         """A failed submission skips that position; subsequent positions are still attempted."""
         pos1 = make_position(vault=VAULT_1, owner=OWNER_1, processed_shares=500)
@@ -304,6 +319,7 @@ def _mock_redeem_positions(
     is_meta_vault: bool = False,
     state_update_required: bool = False,
     submit_results: list[bool] | None = None,
+    ltv_exceeded: bool = False,
 ) -> Iterator[dict[str, MagicMock]]:
     """Mock setup for redeem_positions tests.
 
@@ -313,6 +329,8 @@ def _mock_redeem_positions(
     the unharvested-vault skip. ``submit_results`` controls per-call return values of
     tx_redeem_position; a ``False`` entry models a failed submission that should
     abort the round. Simulation always succeeds; each live position is simulated first.
+    ``ltv_exceeded`` simulates a position where the user's minted osToken loan exceeds
+    their vault assets (LTV > 1), causing the position to be skipped.
     """
     if isinstance(withdrawable, AsyncMock):
         get_withdrawable = withdrawable
@@ -335,6 +353,10 @@ def _mock_redeem_positions(
         patch(f'{MODULE}.get_withdrawable_assets', new=get_withdrawable),
         patch(f'{MODULE}.is_meta_vault', new=AsyncMock(return_value=is_meta_vault)),
         patch(f'{MODULE}.VaultContract', return_value=vault_contract),
+        patch(
+            f'{MODULE}.is_position_ltv_exceeded',
+            new=AsyncMock(return_value=ltv_exceeded),
+        ),
         patch(f'{MODULE}.simulate_redeem_position', new=simulate_mock),
         patch(f'{MODULE}.tx_redeem_position', new=submit_mock),
     ):

src/redemptions/tasks.py

@@ -7,6 +7,7 @@
 from sw_utils.typings import ChainHead, ProtocolConfig
 from web3.types import Wei
 
+from src.common.contracts import VaultContract
 from src.common.execution import get_finalized_block_number
 from src.common.protocol_config import get_protocol_config
 from src.config.settings import settings
@@ -115,6 +116,18 @@ async def aggregate_redemption_assets_by_vaults(
     )
 
 
+async def is_position_ltv_exceeded(
+    position: OsTokenPosition,
+    converter: OsTokenConverter,
+    block_number: BlockNumber,
+) -> bool:
+    vault_contract = VaultContract(position.vault)
+    minted_shares = await vault_contract.get_os_token_position(position.owner, block_number)
+    loan_assets = converter.to_assets(minted_shares)
+    user_assets = await vault_contract.get_user_assets(position.owner, block_number)
+    return loan_assets > user_assets
+
+
 async def assign_shares_to_redeem(
     positions: list[OsTokenPosition],
     total_redemption_shares: Wei,