dgf-prototype/ethereum/test/ValidationPools.js

const {
  time,
  loadFixture,
} = require('@nomicfoundation/hardhat-toolbox/network-helpers');
const { expect } = require('chai');
const { ethers } = require('hardhat');
const deployDAO = require('./util/deploy-dao');

describe('Validation Pools', () => {
  async function deploy() {
    const [account1, account2] = await ethers.getSigners();
    const { dao, forum } = await deployDAO();
    return {
      dao, forum, account1, account2,
    };
  }
  let dao;
  let forum;
  let account1;
  let account2;
  const POOL_DURATION = 3600; // 1 hour
  const POOL_FEE = 100;
  const emptyCallbackData = ethers.AbiCoder.defaultAbiCoder().encode([], []);

  const initiateValidationPool = ({
    postId, duration,
    quorum, winRatio, bindingPercent,
    redistributeLosingStakes, callbackOnValidate,
    callbackData, fee,
  } = {}) => dao.initiateValidationPool(
    postId ?? 'content-id',
    duration ?? POOL_DURATION,
    quorum ?? [1, 3],
    winRatio ?? [1, 2],
    bindingPercent ?? 100,
    redistributeLosingStakes ?? true,
    callbackOnValidate ?? false,
    callbackData ?? emptyCallbackData,
    { value: fee ?? POOL_FEE },
  );

  beforeEach(async () => {
    ({
      dao, forum, account1, account2,
    } = await loadFixture(deploy));
    await forum.addPost([{ weightPPM: 1000000, authorAddress: account1 }], 'content-id', []);
    const init = () => initiateValidationPool({ fee: POOL_FEE });
    await expect(init()).to.emit(dao, 'ValidationPoolInitiated').withArgs(0);
    expect(await dao.getValidationPoolCount()).to.equal(1);
    expect(await dao.memberCount()).to.equal(0);
    expect(await dao.balanceOf(account1)).to.equal(0);
    expect(await dao.totalSupply()).to.equal(POOL_FEE);
  });

  describe('Initiate', () => {
    it('should be able to initiate a validation pool without a fee', async () => {
      const init = () => initiateValidationPool({ fee: 0 });
      await expect(init()).to.emit(dao, 'ValidationPoolInitiated');
    });

    it('should not be able to initiate a validation pool with a quorum below the minimum', async () => {
      const init = () => initiateValidationPool({ quorum: [1, 11] });
      await expect(init()).to.be.revertedWith('Quorum is below minimum');
    });

    it('should not be able to initiate a validation pool with a quorum greater than 1', async () => {
      const init = () => initiateValidationPool({ quorum: [11, 10] });
      await expect(init()).to.be.revertedWith('Quorum is greater than one');
    });

    it('should not be able to initiate a validation pool with duration below minimum', async () => {
      const init = () => initiateValidationPool({ duration: 0 });
      await expect(init()).to.be.revertedWith('Duration is too short');
    });

    it('should not be able to initiate a validation pool with duration above maximum', async () => {
      const init = () => initiateValidationPool({ duration: 40000000000000 });
      await expect(init()).to.be.revertedWith('Duration is too long');
    });

    it('should not be able to initiate a validation pool with bindingPercent above 100', async () => {
      const init = () => initiateValidationPool({ bindingPercent: 101 });
      await expect(init()).to.be.revertedWith('Binding percent must be <= 100');
    });

    it('should be able to initiate a second validation pool', async () => {
      const init = () => initiateValidationPool();
      await expect(init()).to.emit(dao, 'ValidationPoolInitiated').withArgs(1);
      expect(await dao.getValidationPoolCount()).to.equal(2);
    });

    it('Should be able to fetch pool instance', async () => {
      const pool = await dao.getValidationPool(0);
      expect(pool).to.exist;
      expect(pool.params.duration).to.equal(POOL_DURATION);
      expect(pool.props.postId).to.equal('content-id');
      expect(pool.props.resolved).to.be.false;
      expect(pool.sender).to.equal(account1);
    });
  });

  describe('Stake', async () => {
    beforeEach(async () => {
      time.increase(POOL_DURATION + 1);
      await dao.evaluateOutcome(0);
      expect(await dao.balanceOf(account1)).to.equal(100);
      expect(await dao.balanceOf(dao.target)).to.equal(0);
      await initiateValidationPool();
      expect(await dao.balanceOf(account1)).to.equal(100);
      expect(await dao.balanceOf(dao.target)).to.equal(100);
    });

    it('should be able to stake before validation pool has elapsed', async () => {
      await dao.stakeOnValidationPool(1, 10, true);
      expect(await dao.balanceOf(account1)).to.equal(100);
      expect(await dao.balanceOf(dao.target)).to.equal(100);
      time.increase(POOL_DURATION + 1);
      await expect(dao.evaluateOutcome(1)).to.emit(dao, 'ValidationPoolResolved').withArgs(1, true, true);
      expect(await dao.balanceOf(account1)).to.equal(200);
      expect(await dao.balanceOf(dao.target)).to.equal(0);
    });

    it('should not be able to stake after validation pool has elapsed', async () => {
      time.increase(POOL_DURATION + 1);
      await expect(dao.stakeOnValidationPool(1, 10, true)).to.be.revertedWith('Pool end time has passed');
    });

    it('should be able to stake against a validation pool', async () => {
      await dao.stakeOnValidationPool(1, 10, false);
      expect(await dao.balanceOf(account1)).to.equal(100);
      expect(await dao.balanceOf(dao.target)).to.equal(100);
      time.increase(POOL_DURATION + 1);
      await expect(dao.evaluateOutcome(1)).to.emit(dao, 'ValidationPoolResolved').withArgs(1, false, true);
      expect(await dao.balanceOf(account1)).to.equal(200);
      expect(await dao.balanceOf(dao.target)).to.equal(0);
      const pool = await dao.getValidationPool(1);
      expect(pool.props.outcome).to.be.false;
    });

    it('should not be able to stake more REP than the sender owns', async () => {
      await expect(dao.stakeOnValidationPool(1, 200, true)).to.be.revertedWith('Insufficient REP balance to cover stake');
    });
  });

  describe('Delegated stake', () => {
    it('should stake the lesser of the allowed amount or the owner\'s remaining balance', async () => {
      // TODO: owner delegates stake and then loses rep
    });
  });

  describe('Evaluate outcome', () => {
    it('should not be able to evaluate outcome before duration has elapsed if not all rep has been staked', async () => {
      time.increase(POOL_DURATION + 1);
      await expect(dao.evaluateOutcome(0));
      await initiateValidationPool({ fee: 100 });
      await expect(dao.evaluateOutcome(1)).to.be.revertedWith('Pool end time has not yet arrived');
    });

    it('should not be able to evaluate outcome before duration has elapsed unless all rep has been staked', async () => {
      time.increase(POOL_DURATION + 1);
      await expect(dao.evaluateOutcome(0));
      await initiateValidationPool({ fee: 100 });
      await dao.stakeOnValidationPool(1, 100, true);
      await expect(dao.evaluateOutcome(1)).to.emit(dao, 'ValidationPoolResolved').withArgs(1, true, true);
    });

    it('should be able to evaluate outcome after duration has elapsed', async () => {
      expect(await dao.balanceOf(dao.target)).to.equal(100);
      time.increase(POOL_DURATION + 1);
      await expect(dao.evaluateOutcome(0)).to.emit(dao, 'ValidationPoolResolved').withArgs(0, true, true);
      expect(await dao.memberCount()).to.equal(1);
      expect(await dao.balanceOf(account1)).to.equal(100);
      const pool = await dao.getValidationPool(0);
      expect(pool.props.resolved).to.be.true;
      expect(pool.props.outcome).to.be.true;
    });

    it('should not be able to evaluate outcome more than once', async () => {
      time.increase(POOL_DURATION + 1);
      await expect(dao.evaluateOutcome(0)).to.emit(dao, 'ValidationPoolResolved').withArgs(0, true, true);
      await expect(dao.evaluateOutcome(0)).to.be.revertedWith('Pool is already resolved');
    });

    it('should be able to evaluate outcome of second validation pool', async () => {
      const init = () => initiateValidationPool();
      await expect(init()).to.emit(dao, 'ValidationPoolInitiated').withArgs(1);
      expect(await dao.getValidationPoolCount()).to.equal(2);
      time.increase(POOL_DURATION + 1);
      await expect(dao.evaluateOutcome(0)).to.emit(dao, 'ValidationPoolResolved').withArgs(0, true, true);
      expect(await dao.balanceOf(account1)).to.equal(100);
      await expect(dao.evaluateOutcome(1)).to.emit(dao, 'ValidationPoolResolved').withArgs(1, true, true);
      expect(await dao.balanceOf(account1)).to.equal(200);
    });

    it('should not be able to evaluate outcome if quorum is not met', async () => {
      time.increase(POOL_DURATION + 1);
      await expect(dao.evaluateOutcome(0)).to.emit(dao, 'ValidationPoolResolved').withArgs(0, true, true);

      const init = () => initiateValidationPool({ quorum: [1, 1] });
      await expect(init()).to.emit(dao, 'ValidationPoolInitiated').withArgs(1);
      expect(await dao.getValidationPoolCount()).to.equal(2);
      time.increase(POOL_DURATION + 1);
      await expect(dao.evaluateOutcome(1)).to.emit(dao, 'ValidationPoolResolved').withArgs(1, false, false);
    });

    describe('Validation pool options', () => {
      beforeEach(async () => {
        time.increase(POOL_DURATION + 1);
        await dao.evaluateOutcome(0);
        await forum.addPost([{ weightPPM: 1000000, authorAddress: account2 }], 'content-id-2', []);
        const init = () => initiateValidationPool({ postId: 'content-id-2' });
        await expect(init()).to.emit(dao, 'ValidationPoolInitiated').withArgs(1);
        time.increase(POOL_DURATION + 1);
        await dao.evaluateOutcome(1);
      });

      it('Binding validation pool should redistribute stakes', async () => {
        const init = () => initiateValidationPool();
        await expect(init()).to.emit(dao, 'ValidationPoolInitiated').withArgs(2);
        await dao.connect(account1).stakeOnValidationPool(2, 10, true);
        await dao.connect(account2).stakeOnValidationPool(2, 10, false);
        expect(await dao.balanceOf(account1)).to.equal(100);
        expect(await dao.balanceOf(account2)).to.equal(100);
        expect(await dao.balanceOf(dao.target)).to.equal(100);
        time.increase(POOL_DURATION + 1);
        await dao.evaluateOutcome(2);
        expect(await dao.balanceOf(account1)).to.equal(210);
        expect(await dao.balanceOf(account2)).to.equal(90);
        expect(await dao.balanceOf(dao.target)).to.equal(0);
      });

      it('Non binding validation pool should not redistribute stakes', async () => {
        const init = () => initiateValidationPool({ bindingPercent: 0 });
        await expect(init()).to.emit(dao, 'ValidationPoolInitiated').withArgs(2);
        await dao.connect(account1).stakeOnValidationPool(2, 10, true);
        await dao.connect(account2).stakeOnValidationPool(2, 10, false);
        expect(await dao.balanceOf(account1)).to.equal(100);
        expect(await dao.balanceOf(account2)).to.equal(100);
        expect(await dao.balanceOf(dao.target)).to.equal(100);
        time.increase(POOL_DURATION + 1);
        await dao.evaluateOutcome(2);
        expect(await dao.balanceOf(account1)).to.equal(200);
        expect(await dao.balanceOf(account2)).to.equal(100);
        expect(await dao.balanceOf(dao.target)).to.equal(0);
      });

      it('Partially binding validation pool should redistribute some stakes', async () => {
        const init = () => initiateValidationPool({ bindingPercent: 50 });
        await expect(init()).to.emit(dao, 'ValidationPoolInitiated').withArgs(2);
        await dao.connect(account1).stakeOnValidationPool(2, 10, true);
        await dao.connect(account2).stakeOnValidationPool(2, 10, false);
        expect(await dao.balanceOf(account1)).to.equal(100);
        expect(await dao.balanceOf(account2)).to.equal(100);
        expect(await dao.balanceOf(dao.target)).to.equal(100);
        time.increase(POOL_DURATION + 1);
        await dao.evaluateOutcome(2);
        expect(await dao.balanceOf(account1)).to.equal(205);
        expect(await dao.balanceOf(account2)).to.equal(95);
        expect(await dao.balanceOf(dao.target)).to.equal(0);
        expect(await dao.totalSupply()).to.equal(300);
      });

      it('If redistributeLosingStakes is false, validation pool should burn binding portion of losing stakes', async () => {
        const init = () => initiateValidationPool({
          bindingPercent: 50,
          redistributeLosingStakes: false,
        });
        await expect(init()).to.emit(dao, 'ValidationPoolInitiated').withArgs(2);
        await dao.connect(account1).stakeOnValidationPool(2, 10, true);
        await dao.connect(account2).stakeOnValidationPool(2, 10, false);
        expect(await dao.balanceOf(account1)).to.equal(100);
        expect(await dao.balanceOf(account2)).to.equal(100);
        expect(await dao.balanceOf(dao.target)).to.equal(100);
        time.increase(POOL_DURATION + 1);
        await dao.evaluateOutcome(2);
        expect(await dao.balanceOf(account1)).to.equal(200);
        expect(await dao.balanceOf(account2)).to.equal(95);
        expect(await dao.balanceOf(dao.target)).to.equal(0);
        expect(await dao.totalSupply()).to.equal(295);
      });

      it('If redistributeLosingStakes is false and bindingPercent is 0, accounts should recover initial balances', async () => {
        const init = () => initiateValidationPool({
          bindingPercent: 0,
          redistributeLosingStakes: false,
        });
        await expect(init()).to.emit(dao, 'ValidationPoolInitiated').withArgs(2);
        await dao.connect(account1).stakeOnValidationPool(2, 10, true);
        await dao.connect(account2).stakeOnValidationPool(2, 10, false);
        expect(await dao.balanceOf(account1)).to.equal(100);
        expect(await dao.balanceOf(account2)).to.equal(100);
        expect(await dao.balanceOf(dao.target)).to.equal(100);
        time.increase(POOL_DURATION + 1);
        await dao.evaluateOutcome(2);
        expect(await dao.balanceOf(account1)).to.equal(200);
        expect(await dao.balanceOf(account2)).to.equal(100);
        expect(await dao.balanceOf(dao.target)).to.equal(0);
        expect(await dao.totalSupply()).to.equal(300);
      });
    });
  });
});