Skip to main content

Creating Buy Orders

In this chapter, you implement the creation of buy orders. The logic is very similar to the sell order logic you implemented in the previous chapter.

Modify the Proto Definition

Add the buyer to the proto file definition:

// proto/dex/packet.proto

message BuyOrderPacketData {
// ...
string buyer = 5;
}

Now, use Ignite CLI to build the proto files for the send-buy-order command. You used this command in previous chapters.

ignite generate proto-go --yes

IBC Message Handling in SendBuyOrder

  • Check if the pair exists on the order book
  • If the token is an IBC token, burn the tokens
  • If the token is a native token, lock the tokens
  • Save the voucher received on the target chain to later resolve a denom
// x/dex/keeper/msg_server_buy_order.go

import (
"context"
"errors"

sdk "github.com/cosmos/cosmos-sdk/types"

"interchange/x/dex/types"
)

func (k msgServer) SendBuyOrder(goCtx context.Context, msg *types.MsgSendBuyOrder) (*types.MsgSendBuyOrderResponse, error) {
ctx := sdk.UnwrapSDKContext(goCtx)

// Cannot send a order if the pair doesn't exist
pairIndex := types.OrderBookIndex(msg.Port, msg.ChannelID, msg.AmountDenom, msg.PriceDenom)
_, found := k.GetBuyOrderBook(ctx, pairIndex)
if !found {
return &types.MsgSendBuyOrderResponse{}, errors.New("the pair doesn't exist")
}

// Lock the token to send
sender, err := sdk.AccAddressFromBech32(msg.Creator)
if err != nil {
return &types.MsgSendBuyOrderResponse{}, err
}

// Use SafeBurn to ensure no new native tokens are minted
if err := k.SafeBurn(ctx, msg.Port, msg.ChannelID, sender, msg.PriceDenom, msg.Amount*msg.Price); err != nil {
return &types.MsgSendBuyOrderResponse{}, err
}

// Save the voucher received on the other chain, to have the ability to resolve it into the original denom
k.SaveVoucherDenom(ctx, msg.Port, msg.ChannelID, msg.PriceDenom)

// Construct the packet
var packet types.BuyOrderPacketData
packet.Buyer = msg.Creator

// Transmit an IBC packet...
return &types.MsgSendBuyOrderResponse{}, nil
}

On Receiving a Buy Order

  • Update the buy order book
  • Distribute sold token to the buyer
  • Send to chain A the sell order after the fill attempt
// x/dex/keeper/buy_order.go

func (k Keeper) OnRecvBuyOrderPacket(ctx sdk.Context, packet channeltypes.Packet, data types.BuyOrderPacketData) (packetAck types.BuyOrderPacketAck, err error) {
// validate packet data upon receiving
if err := data.ValidateBasic(); err != nil {
return packetAck, err
}

// Check if the sell order book exists
pairIndex := types.OrderBookIndex(packet.SourcePort, packet.SourceChannel, data.AmountDenom, data.PriceDenom)
book, found := k.GetSellOrderBook(ctx, pairIndex)
if !found {
return packetAck, errors.New("the pair doesn't exist")
}

// Fill buy order
remaining, liquidated, purchase, _ := book.FillBuyOrder(types.Order{
Amount: data.Amount,
Price: data.Price,
})

// Return remaining amount and gains
packetAck.RemainingAmount = remaining.Amount
packetAck.Purchase = purchase

// Before distributing gains, we resolve the denom
// First we check if the denom received comes from this chain originally
finalPriceDenom, saved := k.OriginalDenom(ctx, packet.DestinationPort, packet.DestinationChannel, data.PriceDenom)
if !saved {
// If it was not from this chain we use voucher as denom
finalPriceDenom = VoucherDenom(packet.SourcePort, packet.SourceChannel, data.PriceDenom)
}

// Dispatch liquidated buy order
for _, liquidation := range liquidated {
liquidation := liquidation
addr, err := sdk.AccAddressFromBech32(liquidation.Creator)
if err != nil {
return packetAck, err
}

if err := k.SafeMint(
ctx,
packet.DestinationPort,
packet.DestinationChannel,
addr,
finalPriceDenom,
liquidation.Amount*liquidation.Price,
); err != nil {
return packetAck, err
}
}

// Save the new order book
k.SetSellOrderBook(ctx, book)

return packetAck, nil
}

Implement the FillSellOrder Function

The FillSellOrder function tries to fill the buy order with the order book and returns all the side effects:

// x/dex/types/buy_order_book.go

func (b *BuyOrderBook) FillSellOrder(order Order) (
remainingSellOrder Order,
liquidated []Order,
gain int32,
filled bool,
) {
var liquidatedList []Order
totalGain := int32(0)
remainingSellOrder = order

// Liquidate as long as there is match
for {
var match bool
var liquidation Order
remainingSellOrder, liquidation, gain, match, filled = b.LiquidateFromSellOrder(
remainingSellOrder,
)
if !match {
break
}

// Update gains
totalGain += gain

// Update liquidated
liquidatedList = append(liquidatedList, liquidation)

if filled {
break
}
}

return remainingSellOrder, liquidatedList, totalGain, filled
}

Implement The LiquidateFromSellOrder Function

The LiquidateFromSellOrder function liquidates the first sell order of the book from the buy order. If no match is found, return false for match:

// x/dex/types/buy_order_book.go

func (b *BuyOrderBook) LiquidateFromSellOrder(order Order) (
remainingSellOrder Order,
liquidatedBuyOrder Order,
gain int32,
match bool,
filled bool,
) {
remainingSellOrder = order

// No match if no order
orderCount := len(b.Book.Orders)
if orderCount == 0 {
return order, liquidatedBuyOrder, gain, false, false
}

// Check if match
highestBid := b.Book.Orders[orderCount-1]
if order.Price > highestBid.Price {
return order, liquidatedBuyOrder, gain, false, false
}

liquidatedBuyOrder = *highestBid

// Check if sell order can be entirely filled
if highestBid.Amount >= order.Amount {
remainingSellOrder.Amount = 0
liquidatedBuyOrder.Amount = order.Amount
gain = order.Amount * highestBid.Price

// Remove highest bid if it has been entirely liquidated
highestBid.Amount -= order.Amount
if highestBid.Amount == 0 {
b.Book.Orders = b.Book.Orders[:orderCount-1]
} else {
b.Book.Orders[orderCount-1] = highestBid
}

return remainingSellOrder, liquidatedBuyOrder, gain, true, true
}

// Not entirely filled
gain = highestBid.Amount * highestBid.Price
b.Book.Orders = b.Book.Orders[:orderCount-1]
remainingSellOrder.Amount -= highestBid.Amount

return remainingSellOrder, liquidatedBuyOrder, gain, true, false
}

Receiving a Buy Order Acknowledgment

After a buy order acknowledgement is received, chain Mars:

  • Stores the remaining sell order in the sell order book.
  • Distributes sold marscoin to the buyers.
  • Distributes to the seller the price of the amount sold.
  • On error, mints back the burned tokens.
// x/dex/keeper/buy_order.go

func (k Keeper) OnAcknowledgementBuyOrderPacket(ctx sdk.Context, packet channeltypes.Packet, data types.BuyOrderPacketData, ack channeltypes.Acknowledgement) error {
switch dispatchedAck := ack.Response.(type) {
case *channeltypes.Acknowledgement_Error:
// In case of error we mint back the native token
receiver, err := sdk.AccAddressFromBech32(data.Buyer)
if err != nil {
return err
}

if err := k.SafeMint(
ctx,
packet.SourcePort,
packet.SourceChannel,
receiver,
data.PriceDenom,
data.Amount*data.Price,
); err != nil {
return err
}

return nil
case *channeltypes.Acknowledgement_Result:
// Decode the packet acknowledgment
var packetAck types.BuyOrderPacketAck

if err := types.ModuleCdc.UnmarshalJSON(dispatchedAck.Result, &packetAck); err != nil {
// The counter-party module doesn't implement the correct acknowledgment format
return errors.New("cannot unmarshal acknowledgment")
}

// Get the sell order book
pairIndex := types.OrderBookIndex(packet.SourcePort, packet.SourceChannel, data.AmountDenom, data.PriceDenom)
book, found := k.GetBuyOrderBook(ctx, pairIndex)
if !found {
panic("buy order book must exist")
}

// Append the remaining amount of the order
if packetAck.RemainingAmount > 0 {
_, err := book.AppendOrder(
data.Buyer,
packetAck.RemainingAmount,
data.Price,
)
if err != nil {
return err
}

// Save the new order book
k.SetBuyOrderBook(ctx, book)
}

// Mint the purchase
if packetAck.Purchase > 0 {
receiver, err := sdk.AccAddressFromBech32(data.Buyer)
if err != nil {
return err
}

finalAmountDenom, saved := k.OriginalDenom(ctx, packet.SourcePort, packet.SourceChannel, data.AmountDenom)
if !saved {
// If it was not from this chain we use voucher as denom
finalAmountDenom = VoucherDenom(packet.DestinationPort, packet.DestinationChannel, data.AmountDenom)
}

if err := k.SafeMint(
ctx,
packet.SourcePort,
packet.SourceChannel,
receiver,
finalAmountDenom,
packetAck.Purchase,
); err != nil {
return err
}
}

return nil
default:
// The counter-party module doesn't implement the correct acknowledgment format
return errors.New("invalid acknowledgment format")
}
}

AppendOrder appends an order in the buy order book. Add the following function to the x/dex/types/buy_order_book.go file in the types directory.

// x/dex/types/buy_order_book.go

func (b *BuyOrderBook) AppendOrder(creator string, amount int32, price int32) (int32, error) {
return b.Book.appendOrder(creator, amount, price, Increasing)
}

OnTimeout of a Buy Order Packet

If a timeout occurs, mint back the native token:

// x/dex/keeper/buy_order.go

func (k Keeper) OnTimeoutBuyOrderPacket(ctx sdk.Context, packet channeltypes.Packet, data types.BuyOrderPacketData) error {
// In case of error we mint back the native token
receiver, err := sdk.AccAddressFromBech32(data.Buyer)
if err != nil {
return err
}

if err := k.SafeMint(
ctx,
packet.SourcePort,
packet.SourceChannel,
receiver,
data.PriceDenom,
data.Amount*data.Price,
); err != nil {
return err
}

return nil
}

Summary

Congratulations, you implemented the buy order logic.

Again, it's a good time to save your current state to your local GitHub repository:

git add .
git commit -m "Add Buy Orders"