fix: issue where certain profitable positions cannot be closed

.changeset/angry-ideas-heal.md

@@ -0,0 +1,5 @@
+---
+"@venusprotocol/evm": patch
+---
+
+fix an issue where certain profitable positions can't be closed

apps/evm/src/clients/api/queries/getTradeReduceSwapQuotes/__tests__/index.spec.ts

@@ -264,4 +264,64 @@ describe('getTradeReduceSwapQuotes', () => {
     ).toBe('10');
     expect(result.pnlDsaTokens.toFixed()).toBe('3');
   });
+
+  it('returns direct positive pnl in dsa tokens without a profit swap when the long token matches the dsa token', async () => {
+    (getSwapQuote as Mock)
+      .mockResolvedValueOnce({
+        swapQuote: makeApproximateOutSwapQuote({
+          fromToken: busd,
+          toToken: usdc,
+          fromTokenAmountSoldMantissa: 3_000_000_000_000_000_000n,
+          minimumToTokenAmountReceivedMantissa: 5_000_000n,
+        }),
+      })
+      .mockResolvedValueOnce({
+        swapQuote: makeExactInSwapQuote({
+          fromToken: busd,
+          toToken: usdc,
+          fromTokenAmountSoldMantissa: 10_000_000_000_000_000_000n,
+          minimumToTokenAmountReceivedMantissa: 5_000_000n,
+        }),
+      });
+
+    const result = await getTradeReduceSwapQuotes({
+      ...sharedInput,
+      dsaToken: busd,
+      closeFractionPercentage: 50,
+    });
+
+    expect(getSwapQuote).toHaveBeenCalledTimes(2);
+    expect(result.pnlDsaTokens.toFixed()).toBe('7');
+    expect(result.profitSwapQuote).toBeUndefined();
+  });
+
+  it('returns direct negative dsa pnl without a loss swap when the short token matches the dsa token', async () => {
+    (getSwapQuote as Mock)
+      .mockResolvedValueOnce({
+        swapQuote: makeApproximateOutSwapQuote({
+          fromToken: busd,
+          toToken: usdc,
+          fromTokenAmountSoldMantissa: 10_000_000_000_000_000_000n,
+          minimumToTokenAmountReceivedMantissa: 5_000_000n,
+        }),
+      })
+      .mockResolvedValueOnce({
+        swapQuote: makeExactInSwapQuote({
+          fromToken: busd,
+          toToken: usdc,
+          fromTokenAmountSoldMantissa: 10_000_000_000_000_000_000n,
+          minimumToTokenAmountReceivedMantissa: 4_000_000n,
+        }),
+      });
+
+    const result = await getTradeReduceSwapQuotes({
+      ...sharedInput,
+      dsaToken: usdc,
+      closeFractionPercentage: 50,
+    });
+
+    expect(getSwapQuote).toHaveBeenCalledTimes(2);
+    expect(result.pnlDsaTokens.toFixed()).toBe('-1');
+    expect(result.lossSwapQuote).toBeUndefined();
+  });
 });

apps/evm/src/clients/api/queries/getTradeReduceSwapQuotes/index.ts

@@ -163,11 +163,19 @@ export const getTradeReduceSwapQuotes = async ({
   // Calculate actual PnL based on swaps
   let pnlDsaTokens = new BigNumber(0);
 
-  // Closing/Reducing with profit
-  if (profitSwapQuote?.direction === 'exact-in') {
+  // Closing/Reducing with profit when long token = DSA token
+  if (areTokensEqual(longToken, dsaToken) && longProfitAmountDeltaTokens?.isGreaterThan(0)) {
+    pnlDsaTokens = longProfitAmountDeltaTokens;
+  }
+  // Closing/Reducing with loss when short token = DSA token
+  else if (areTokensEqual(shortToken, dsaToken) && shortLossAmountDeltaTokens?.isGreaterThan(0)) {
+    pnlDsaTokens = shortLossAmountDeltaTokens.multipliedBy(-1);
+  }
+  // Closing/Reducing with profit when long token ≠ DSA token
+  else if (profitSwapQuote?.direction === 'exact-in') {
     pnlDsaTokens = getSwapToTokenAmount(profitSwapQuote);
   }
-  // Closing/Reducing with loss
+  // Closing/Reducing with loss  when short token ≠ DSA token
   else if (lossSwapQuote?.direction === 'approximate-out') {
     pnlDsaTokens = convertMantissaToTokens({
       value: lossSwapQuote.fromTokenAmountSoldMantissa,

apps/evm/src/libs/errors/handleError/index.ts

@@ -1,4 +1,4 @@
-import { BaseError } from 'viem';
+import type { BaseError } from 'viem';
 
 import { displayNotification } from 'libs/notifications';
 

apps/evm/src/pages/Trade/ReduceForm/index.tsx

@@ -219,6 +219,8 @@ export const ReduceForm: React.FC<ReduceFormProps> = ({ position, closePosition
     }
 
     const isReducingWithProfit = pnlDsaTokens?.isGreaterThan(0);
+    const isReducingWithLoss = pnlDsaTokens?.isLessThan(0);
+    const isReducingWithoutPnl = pnlDsaTokens?.isZero();
 
     // Reduce with profit
     if (
@@ -251,44 +253,43 @@ export const ReduceForm: React.FC<ReduceFormProps> = ({ position, closePosition
       });
     }
 
-    const isReducingWithLoss =
-      pnlDsaTokens?.isLessThan(0) &&
-      repayWithLossSwapQuote?.direction === 'exact-in' &&
-      lossSwapQuote?.direction === 'approximate-out';
-
-    const isReducingWithoutPnl =
-      pnlDsaTokens?.isZero() && repayWithLossSwapQuote?.direction === 'exact-in';
-
     const repayShortAmountMantissa = convertTokensToMantissa({
       token: position.shortAsset.vToken.underlyingToken,
       value: debouncedShortAmountTokens,
     });
 
+    const sanitizedLossSwapQuote =
+      lossSwapQuote?.direction === 'approximate-out' ? lossSwapQuote : undefined;
+
     // Reduce with loss
-    if (isReducingWithLoss && !closePosition) {
+    if (isReducingWithLoss && !closePosition && repayWithLossSwapQuote?.direction === 'exact-in') {
       return reducePositionWithLoss({
         longVTokenAddress: position.longAsset.vToken.address,
         shortVTokenAddress: position.shortAsset.vToken.address,
         closeFractionPercentage,
         repaySwapQuote: repayWithLossSwapQuote,
-        lossSwapQuote,
+        lossSwapQuote: sanitizedLossSwapQuote,
         repayShortAmountMantissa,
       });
     }
 
     // Close with loss
-    if (isReducingWithLoss && closePosition) {
+    if (isReducingWithLoss && closePosition && repayWithLossSwapQuote?.direction === 'exact-in') {
       return closePositionWithLoss({
         longVTokenAddress: position.longAsset.vToken.address,
         shortVTokenAddress: position.shortAsset.vToken.address,
         repaySwapQuote: repayWithLossSwapQuote,
-        lossSwapQuote,
+        lossSwapQuote: sanitizedLossSwapQuote,
         repayShortAmountMantissa,
       });
     }
 
     // Reduce without PnL
-    if (isReducingWithoutPnl && !closePosition) {
+    if (
+      isReducingWithoutPnl &&
+      !closePosition &&
+      repayWithLossSwapQuote?.direction === 'exact-in'
+    ) {
       return reducePositionWithLoss({
         longVTokenAddress: position.longAsset.vToken.address,
         shortVTokenAddress: position.shortAsset.vToken.address,
@@ -299,7 +300,7 @@ export const ReduceForm: React.FC<ReduceFormProps> = ({ position, closePosition
     }
 
     // Close without PnL
-    if (isReducingWithoutPnl && closePosition) {
+    if (isReducingWithoutPnl && closePosition && repayWithLossSwapQuote?.direction === 'exact-in') {
       return closePositionWithLoss({
         longVTokenAddress: position.longAsset.vToken.address,
         shortVTokenAddress: position.shortAsset.vToken.address,