drift-labs
diff --git a/‎programs/drift/src/controller/amm.rs‎
Lines changed: 9 additions & 8 deletions b/‎programs/drift/src/controller/amm.rs‎
Lines changed: 9 additions & 8 deletions
diff --git a/‎programs/drift/src/controller/position/tests.rs‎
Lines changed: 63 additions & 51 deletions b/‎programs/drift/src/controller/position/tests.rs‎
Lines changed: 63 additions & 51 deletions
diff --git a/‎programs/drift/src/math/amm_spread.rs‎
Lines changed: 14 additions & 14 deletions b/‎programs/drift/src/math/amm_spread.rs‎
Lines changed: 14 additions & 14 deletions
@@ -277,6 +277,7 @@ pub fn update_spreads(
     market.amm.short_spread = short_spread;
 
     let do_reference_price_smooth = {
+        // let val_changed: bool = reference_price_offset != market.amm.reference_price_offset;
         let sign_changed: bool =
             reference_price_offset.signum() != market.amm.reference_price_offset.signum();
 
@@ -292,18 +293,18 @@ pub fn update_spreads(
                 .saturating_sub(market.amm.reference_price_offset.cast::<i128>()?);
             let raw = full_offset_delta
                 .abs()
-                .cast::<i128>()?
-                .min(slots_passed.cast::<i128>()?.safe_mul(1000)?)
-                .cast::<i128>()?
+                .min(slots_passed.cast::<i128>()?.safe_mul(1000_i128)?)
                 .safe_div(10_i128)?
                 .cast::<i32>()?;
 
             full_offset_delta.signum().cast::<i32>()?
-                * (raw.max(10).min(if market.amm.reference_price_offset != 0 {
-                    market.amm.reference_price_offset.abs()
-                } else {
-                    reference_price_offset.abs()
-                }))
+                * (raw
+                    .max(10_i32)
+                    .min(if market.amm.reference_price_offset != 0 {
+                        market.amm.reference_price_offset.abs()
+                    } else {
+                        reference_price_offset.abs()
+                    }))
         };
 
         market.amm.reference_price_offset = market
 
@@ -627,7 +627,7 @@ fn amm_ref_price_decay_tail_test() {
     assert_eq!(res, 0);
 
     let mut now = perp_market.amm.last_mark_price_twap_ts + 1;
-    let mut clock_slot = 354806508 + 1; // todo
+    let mut clock_slot = perp_market.amm.last_update_slot;
     let state = State::default();
     let oracle_price_data = OraclePriceData {
         price: 3610241,
@@ -653,7 +653,7 @@ fn amm_ref_price_decay_tail_test() {
     .unwrap();
     assert_eq!(perp_market.amm.last_update_slot, clock_slot);
     assert_eq!(perp_market.amm.last_oracle_valid, true);
-    assert_eq!(perp_market.amm.reference_price_offset, -236093);
+    assert_eq!(perp_market.amm.reference_price_offset, -236183);
 
     // Run  decay steps
     let mut offsets = Vec::new();
@@ -696,30 +696,30 @@ fn amm_ref_price_decay_tail_test() {
     assert_eq!(
         offsets,
         [
-            -212475, -191219, -172089, -154872, -139376, -125430, -125410, -125390, -125370,
-            -125350, -112806, -101517, -91357, -82213, -73983, -66576, -59910, -53910, -48510,
-            -43650, -39276, -35340, -31797, -28609, -25740, -23157, -20833, -18741, -16858, -15164,
-            -13639, -12267, -11032, -9920, -8919, -8019, -7209, -6480, -5823, -5232, -4700, -4221,
+            -212556, -191292, -172154, -154930, -139428, -125477, -125457, -125437, -125417,
+            -125397, -112849, -101556, -91392, -82244, -74011, -66601, -59932, -53930, -48528,
+            -43667, -39292, -35354, -31810, -28620, -25749, -23166, -20841, -18748, -16865, -15170,
+            -13644, -12271, -11035, -9923, -8922, -8021, -7210, -6480, -5823, -5232, -4700, -4221,
             -3790, -3402, -3053, -2739, -2457, -2203, -1974, -1768, -1583, -1416, -1266, -1131,
             -1009, -900, -801, -712, -632, -560
         ]
     );
     assert_eq!(
         lspreads,
         [
-            212587, 191331, 172201, 154984, 139488, 125542, 125522, 125502, 125482, 125462, 112918,
-            101629, 91469, 82325, 74095, 66688, 60022, 54022, 48622, 43762, 39388, 35452, 31909,
-            28721, 25852, 23269, 20945, 18853, 16970, 15276, 13751, 12379, 11144, 10032, 9031,
-            8131, 7321, 6592, 5935, 5344, 4812, 4333, 3902, 3514, 3165, 2851, 2569, 2315, 2086,
+            212668, 191404, 172266, 155042, 139540, 125589, 125569, 125549, 125529, 125509, 112961,
+            101668, 91504, 82356, 74123, 66713, 60044, 54042, 48640, 43779, 39404, 35466, 31922,
+            28732, 25861, 23278, 20953, 18860, 16977, 15282, 13756, 12383, 11147, 10035, 9034,
+            8133, 7322, 6592, 5935, 5344, 4812, 4333, 3902, 3514, 3165, 2851, 2569, 2315, 2086,
             1880, 1695, 1528, 1378, 1243, 1121, 1012, 913, 824, 744, 672
         ]
     );
     assert_eq!(
         sspreads,
         [
-            23633, 21271, 19145, 17232, 15511, 13961, 35, 35, 35, 35, 12559, 11304, 10175, 9159,
-            8245, 7422, 6681, 6015, 5415, 4875, 4389, 3951, 3558, 3203, 2884, 2598, 2339, 2107,
-            1898, 1709, 1540, 1387, 1250, 1127, 1016, 915, 825, 744, 672, 606, 547, 494, 446, 403,
+            23642, 21279, 19153, 17239, 15517, 13966, 35, 35, 35, 35, 12563, 11308, 10179, 9163,
+            8248, 7425, 6684, 6017, 5417, 4876, 4390, 3953, 3559, 3205, 2886, 2598, 2340, 2108,
+            1898, 1710, 1541, 1388, 1251, 1127, 1016, 916, 826, 745, 672, 606, 547, 494, 446, 403,
             364, 329, 297, 269, 244, 221, 200, 182, 165, 150, 137, 124, 114, 104, 95, 87
         ]
     );
@@ -804,7 +804,7 @@ fn amm_ref_price_offset_decay_logic() {
     assert_eq!(res, 10000);
 
     let mut now = perp_market.amm.last_mark_price_twap_ts + 10;
-    let mut clock_slot = 353317544 + 20; // todo
+    let mut clock_slot = perp_market.amm.last_update_slot;
     let state = State::default();
     let oracle_price_data = OraclePriceData {
         price: 120003893646,
@@ -830,7 +830,7 @@ fn amm_ref_price_offset_decay_logic() {
     .unwrap();
     assert_eq!(perp_market.amm.last_update_slot, clock_slot);
     assert_eq!(perp_market.amm.last_oracle_valid, true);
-    assert_eq!(perp_market.amm.reference_price_offset, 4458);
+    assert_eq!(perp_market.amm.reference_price_offset, 10000);
 
     perp_market.amm.last_mark_price_twap_5min = (perp_market
         .amm
@@ -880,28 +880,30 @@ fn amm_ref_price_offset_decay_logic() {
     assert_eq!(
         offsets,
         [
-            4248, 4038, 3828, 3618, 3408, 3198, 3178, 3158, 3138, 3118, 2908, 2698, 2488, 2278,
-            2068, 1858, 1664, 1489, 1332, 1190, 1062, 947, 844, 751, 667, 592, 524, 463, 408, 359,
-            315, 275, 239, 207, 178, 152, 128, 107, 87, 67, 47, 27, 7, 0, 0, 0, 0, 0, 0, 0, 0, 0,
-            0, 0, 0, 0, 0, 0, 0, 0
+            9790, 9580, 9370, 9160, 8950, 8740, 8720, 8700, 8680, 8660, 8450, 8240, 8030, 7820,
+            7610, 7400, 7190, 6980, 6770, 6560, 6350, 6140, 5930, 5720, 5510, 5300, 5090, 4880,
+            4670, 4460, 4250, 4040, 3830, 3620, 3410, 3200, 2990, 2780, 2570, 2360, 2150, 1940,
+            1737, 1555, 1391, 1243, 1110, 990, 882, 785, 698, 620, 549, 486, 429, 378, 332, 290,
+            252, 218
         ]
     );
     assert_eq!(
         lspreads,
         [
-            726, 726, 726, 726, 726, 726, 536, 536, 536, 536, 726, 726, 726, 726, 726, 726, 710,
-            691, 673, 658, 644, 631, 619, 609, 600, 591, 584, 577, 571, 565, 560, 556, 552, 548,
-            545, 542, 540, 537, 536, 536, 536, 536, 536, 526, 526, 526, 526, 526, 526, 526, 526,
-            526, 526, 526, 526, 526, 526, 526, 526, 526
+            726, 726, 726, 726, 726, 726, 536, 536, 536, 536, 726, 726, 726, 726, 726, 726, 726,
+            726, 726, 726, 726, 726, 726, 726, 726, 726, 726, 726, 726, 726, 726, 726, 726, 726,
+            726, 726, 726, 726, 726, 726, 726, 726, 719, 698, 680, 664, 649, 636, 624, 613, 603,
+            594, 587, 579, 573, 567, 562, 558, 554, 550
         ]
     );
     assert_eq!(
         sspreads,
         [
-            4258, 4048, 3838, 3628, 3418, 3208, 3188, 3168, 3148, 3128, 2918, 2708, 2498, 2288,
-            2078, 1868, 1674, 1499, 1342, 1200, 1072, 957, 854, 761, 677, 602, 534, 473, 418, 369,
-            325, 285, 249, 217, 188, 162, 138, 117, 97, 77, 57, 37, 17, 10, 10, 10, 10, 10, 10, 10,
-            10, 10, 10, 10, 10, 10, 10, 10, 10, 10
+            9800, 9590, 9380, 9170, 8960, 8750, 8730, 8710, 8690, 8670, 8460, 8250, 8040, 7830,
+            7620, 7410, 7200, 6990, 6780, 6570, 6360, 6150, 5940, 5730, 5520, 5310, 5100, 4890,
+            4680, 4470, 4260, 4050, 3840, 3630, 3420, 3210, 3000, 2790, 2580, 2370, 2160, 1950,
+            1747, 1565, 1401, 1253, 1120, 1000, 892, 795, 708, 630, 559, 496, 439, 388, 342, 300,
+            262, 228
         ]
     );
 }
@@ -979,7 +981,7 @@ fn amm_negative_ref_price_offset_decay_logic() {
     assert_eq!(res, 10000);
 
     let mut now = perp_market.amm.last_mark_price_twap_ts + 10;
-    let mut clock_slot = 353317544 + 20; // todo
+    let mut clock_slot = perp_market.amm.last_update_slot;
     let state = State::default();
     let oracle_price_data = OraclePriceData {
         price: 120003893646,
@@ -1005,7 +1007,7 @@ fn amm_negative_ref_price_offset_decay_logic() {
     .unwrap();
     assert_eq!(perp_market.amm.last_update_slot, clock_slot);
     assert_eq!(perp_market.amm.last_oracle_valid, true);
-    assert_eq!(perp_market.amm.reference_price_offset, 4458);
+    assert_eq!(perp_market.amm.reference_price_offset, 10000);
 
     perp_market.amm.last_mark_price_twap_5min = (perp_market
         .amm
@@ -1051,36 +1053,46 @@ fn amm_negative_ref_price_offset_decay_logic() {
         offsets.push(perp_market.amm.reference_price_offset);
         lspreads.push(perp_market.amm.long_spread);
         sspreads.push(perp_market.amm.short_spread);
+
+        // if perp_market.amm.reference_price_offset == 0 {
+        //     assert_eq!(i, 1);
+        // }
     }
 
+    // assert_eq!(lspreads[52], 0);
+    // assert_eq!(lspreads[51], 0); // when offset flips
+
     assert_eq!(
         offsets,
         [
-            -4248, -4038, -3828, -3618, -3408, -3198, -3178, -3158, -3138, -3118, -2908, -2698,
-            -2488, -2278, -2068, -1858, -1648, -1438, -1228, -1018, -808, -598, -388, -178, 0,
-            7654, 7652, 7651, 7649, 7648, 7646, 7645, 7643, 7641, 7640, 7638, 7637, 7635, 7634,
-            7632, 7631, 7629, 7628, 7626, 7625, 7623, 7622, 7620, 7619, 7618, 7616, 7615, 7613,
-            7612, 7610, 7609, 7607, 7606, 7605, 7603, 7602, 7600, 7599, 7597, 7596, 7595, 7593,
-            7592, 7591, 7589, 7588, 7586, 7585, 7584, 7582, 7581, 7580, 7578, 7577, 7576
+            -9790, -9580, -9370, -9160, -8950, -8740, -8720, -8700, -8680, -8660, -8450, -8240,
+            -8030, -7820, -7610, -7400, -7190, -6980, -6770, -6560, -6350, -6140, -5930, -5720,
+            -5510, -5300, -5090, -4880, -4670, -4460, -4250, -4040, -3830, -3620, -3410, -3200,
+            -2990, -2780, -2570, -2360, -2150, -1940, -1730, -1520, -1310, -1100, -890, -680, -470,
+            -260, -50, 0, 10000, 10000, 10000, 10000, 10000, 10000, 10000, 10000, 10000, 10000,
+            10000, 10000, 10000, 10000, 10000, 10000, 10000, 10000, 10000, 10000, 10000, 10000,
+            10000, 10000, 10000, 10000, 10000, 10000
         ]
     );
     assert_eq!(
         sspreads,
         [
             210, 210, 210, 210, 210, 210, 20, 20, 20, 20, 210, 210, 210, 210, 210, 210, 210, 210,
-            210, 210, 210, 210, 210, 210, 178, 10, 10, 10, 10, 10, 10, 10, 10, 10, 10, 10, 10, 10,
+            210, 210, 210, 210, 210, 210, 210, 210, 210, 210, 210, 210, 210, 210, 210, 210, 210,
+            210, 210, 210, 210, 210, 210, 210, 210, 210, 210, 210, 210, 210, 210, 210, 210, 50, 10,
             10, 10, 10, 10, 10, 10, 10, 10, 10, 10, 10, 10, 10, 10, 10, 10, 10, 10, 10, 10, 10, 10,
-            10, 10, 10, 10, 10, 10, 10, 10, 10, 10, 10, 10, 10, 10, 10, 10, 10, 10, 10, 10
+            10, 10, 10, 10, 10
         ]
     );
     assert_eq!(
         lspreads,
         [
-            4774, 4564, 4354, 4144, 3934, 3724, 3704, 3684, 3664, 3644, 3434, 3224, 3014, 2804,
-            2594, 2384, 2174, 1964, 1754, 1544, 1334, 1124, 914, 704, 526, 526, 526, 526, 526, 526,
-            526, 526, 526, 526, 526, 526, 526, 526, 526, 526, 526, 526, 526, 526, 526, 526, 526,
+            10316, 10106, 9896, 9686, 9476, 9266, 9246, 9226, 9206, 9186, 8976, 8766, 8556, 8346,
+            8136, 7926, 7716, 7506, 7296, 7086, 6876, 6666, 6456, 6246, 6036, 5826, 5616, 5406,
+            5196, 4986, 4776, 4566, 4356, 4146, 3936, 3726, 3516, 3306, 3096, 2886, 2676, 2466,
+            2256, 2046, 1836, 1626, 1416, 1206, 996, 786, 576, 526, 526, 526, 526, 526, 526, 526,
             526, 526, 526, 526, 526, 526, 526, 526, 526, 526, 526, 526, 526, 526, 526, 526, 526,
-            526, 526, 526, 526, 526, 526, 526, 526, 526, 526, 526, 526, 526, 526, 526, 526
+            526, 526, 526, 526, 526
         ]
     );
 }
@@ -1195,18 +1207,18 @@ fn amm_perp_ref_offset() {
 
     let r = perp_market.amm.reserve_price().unwrap();
     let (b, a) = perp_market.amm.bid_ask_price(r).unwrap();
-    assert_eq!(b, 7098999);
-    assert_eq!(a, 7106129);
+    assert_eq!(b, 7108594);
+    assert_eq!(a, 7115724);
     assert_eq!(
         perp_market.amm.historical_oracle_data.last_oracle_price,
         7101600
     );
-    assert_eq!(perp_market.amm.reference_price_offset, 134);
+    assert_eq!(perp_market.amm.reference_price_offset, 1485);
     assert_eq!(perp_market.amm.max_spread, 90000);
 
     assert_eq!(r, 7101599);
-    assert_eq!(perp_market.amm.bid_base_asset_reserve, 4675159724262455);
-    assert_eq!(perp_market.amm.ask_base_asset_reserve, 4672813088646692);
+    assert_eq!(perp_market.amm.bid_base_asset_reserve, 4672004879737647);
+    assert_eq!(perp_market.amm.ask_base_asset_reserve, 4669662283322685);
 
     crate::validation::perp_market::validate_perp_market(&perp_market).unwrap();
 
@@ -1233,10 +1245,10 @@ fn amm_perp_ref_offset() {
         .amm
         .bid_ask_price(reserve_price_mm_offset)
         .unwrap();
-    assert_eq!(perp_market.amm.reference_price_offset, 133);
+    assert_eq!(perp_market.amm.reference_price_offset, 1462);
     assert_eq!(reserve_price_mm_offset, 7137107);
-    assert_eq!(b2, 7101549);
-    assert_eq!(a2, 7174591);
+    assert_eq!(b2, 7111035);
+    assert_eq!(a2, 7184076);
 
     // Uses the original oracle if the slot is old, ignoring MM oracle
     perp_market.amm.mm_oracle_price = mm_oracle_price_data.get_price() * 995 / 1000;
@@ -1256,8 +1268,8 @@ fn amm_perp_ref_offset() {
         .bid_ask_price(reserve_price_mm_offset_3)
         .unwrap();
     assert_eq!(reserve_price_mm_offset_3, r);
-    assert_eq!(b3, 7066225);
-    assert_eq!(a3, 7138903);
+    assert_eq!(b3, 7075820);
+    assert_eq!(a3, 7148497);
 }
 
 #[test]
 
@@ -11,9 +11,9 @@ use crate::math::constants::{
     AMM_TIMES_PEG_TO_QUOTE_PRECISION_RATIO_I128, AMM_TO_QUOTE_PRECISION_RATIO_I128,
     BID_ASK_SPREAD_PRECISION, BID_ASK_SPREAD_PRECISION_I128, DEFAULT_LARGE_BID_ASK_FACTOR,
     DEFAULT_REVENUE_SINCE_LAST_FUNDING_SPREAD_RETREAT, FUNDING_RATE_BUFFER,
-    MAX_BID_ASK_INVENTORY_SKEW_FACTOR, PEG_PRECISION, PERCENTAGE_PRECISION,
-    PERCENTAGE_PRECISION_I128, PERCENTAGE_PRECISION_U64, PRICE_PRECISION, PRICE_PRECISION_I128,
-    PRICE_PRECISION_I64,
+    FUNDING_RATE_OFFSET_DENOMINATOR, MAX_BID_ASK_INVENTORY_SKEW_FACTOR, PEG_PRECISION,
+    PERCENTAGE_PRECISION, PERCENTAGE_PRECISION_I128, PERCENTAGE_PRECISION_U64, PRICE_PRECISION,
+    PRICE_PRECISION_I128, PRICE_PRECISION_I64,
 };
 use crate::math::safe_math::SafeMath;
 use crate::state::perp_market::{ContractType, PerpMarket, AMM};
@@ -620,9 +620,13 @@ pub fn calculate_reference_price_offset(
     let mark_premium_day: i64 = last_24h_avg_funding_rate
         .safe_div(FUNDING_RATE_BUFFER.cast()?)?
         .safe_mul(24)?
+        .safe_sub(
+            oracle_twap_slow
+                .abs()
+                .safe_div(FUNDING_RATE_OFFSET_DENOMINATOR)?,
+        )?
         .clamp(-max_offset_in_price, max_offset_in_price); // todo: look at how 24h funding is calc w.r.t. the funding_period
-
-    // take average clamped premium as the price-based offset
+                                                           // take average clamped premium as the price-based offset
     let mark_premium_avg = mark_premium_minute
         .safe_add(mark_premium_hour)?
         .safe_add(mark_premium_day)?
@@ -632,17 +636,13 @@ pub fn calculate_reference_price_offset(
         .safe_mul(PRICE_PRECISION_I64)?
         .safe_div(reserve_price.cast()?)?;
 
-    let inventory_pct = liquidity_fraction
-        .cast::<i64>()?
-        .safe_mul(max_offset_pct)?
-        .safe_div(PERCENTAGE_PRECISION.cast::<i64>()?)?
-        .clamp(-max_offset_pct, max_offset_pct);
-
     // only apply when inventory is consistent with recent and 24h market premium
-    let offset_pct = if (mark_premium_avg_pct >= 0 && inventory_pct >= 0)
-        || (mark_premium_avg_pct <= 0 && inventory_pct <= 0)
+    let offset_pct = if (mark_premium_avg_pct >= 0 && liquidity_fraction >= 0)
+        || (mark_premium_avg_pct <= 0 && liquidity_fraction <= 0)
     {
-        mark_premium_avg_pct.safe_add(inventory_pct)?
+        mark_premium_avg_pct
+            .safe_mul(liquidity_fraction.unsigned_abs().cast::<i64>()?)?
+            .safe_div(2)?
     } else {
         0
     };