Repay form: pay interest first (#2072)

centrifuge · May 2, 2024 · 468af1f · 468af1f
1 parent 7585749
commit 468af1f
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Showing 4 changed files with 54 additions and 30 deletions.
diff --git a/centrifuge-app/src/pages/Loan/RepayForm.tsx b/centrifuge-app/src/pages/Loan/RepayForm.tsx
@@ -1,4 +1,4 @@
-import { ActiveLoan, CurrencyBalance, findBalance } from '@centrifuge/centrifuge-js'
+import { ActiveLoan, CurrencyBalance, Rate, findBalance } from '@centrifuge/centrifuge-js'
 import { useBalances, useCentrifugeTransaction } from '@centrifuge/centrifuge-react'
 import { Button, Card, CurrencyInput, InlineFeedback, Shelf, Stack, Text } from '@centrifuge/fabric'
 import BN from 'bn.js'
@@ -63,14 +63,25 @@ function InternalRepayForm({ loan }: { loan: ActiveLoan }) {
       amount: '',
     },
     onSubmit: (values, actions) => {
-      const outstandingPrincipal = loan.totalBorrowed.sub(loan.repaid.principal)
-      let amount: BN = CurrencyBalance.fromFloat(values.amount, pool.currency.decimals)
-      let interest = new BN(0)
-      if (amount.gt(outstandingPrincipal)) {
-        interest = amount.sub(outstandingPrincipal)
-        amount = outstandingPrincipal
+      // Pay the interest with a small margin first, then the principal
+      let interest: BN = CurrencyBalance.fromFloat(values.amount, pool.currency.decimals)
+      let principal = new BN(0)
+
+      // Calculate interest from the time the loan was fetched until now
+      const time = Date.now() - loan.fetchedAt.getTime()
+      const margin = CurrencyBalance.fromFloat(
+        loan.outstandingPrincipal
+          .toDecimal()
+          .mul(Rate.fractionFromApr(loan.pricing.interestRate.toDecimal()).toDecimal())
+          .mul(time),
+        pool.currency.decimals
+      )
+      const interestWithMargin = loan.outstandingInterest.add(margin)
+      if (interest.gt(interestWithMargin)) {
+        principal = interest.sub(interestWithMargin)
+        interest = interestWithMargin
       }
-      doRepayTransaction([loan.poolId, loan.id, amount, interest, new BN(0)], { account, forceProxyType: 'Borrow' })
+      doRepayTransaction([loan.poolId, loan.id, principal, interest, new BN(0)], { account, forceProxyType: 'Borrow' })
       actions.setSubmitting(false)
     },
     validateOnMount: true,

diff --git a/centrifuge-app/src/pages/Loan/TransferDebtForm.tsx b/centrifuge-app/src/pages/Loan/TransferDebtForm.tsx
@@ -87,7 +87,9 @@ export function TransferDebtForm({ loan }: { loan: LoanType }) {
       let repay: any = { principal, interest }
       if (isExternalLoan(selectedLoan)) {
         const repayPriceBN = CurrencyBalance.fromFloat(form.values.targetLoanPrice || 1, pool.currency.decimals)
-        const repayQuantityBN = Price.fromFloat(Dec(values.targetLoanFaceValue || 0).div(selectedLoan.pricing.notional.toDecimal()))
+        const repayQuantityBN = Price.fromFloat(
+          Dec(values.targetLoanFaceValue || 0).div(selectedLoan.pricing.notional.toDecimal())
+        )
         repay = { quantity: repayQuantityBN, price: repayPriceBN, interest }
       }
 
@@ -97,26 +99,28 @@ export function TransferDebtForm({ loan }: { loan: LoanType }) {
       })
       actions.setSubmitting(false)
     },
-    validate(values) { 
+    validate(values) {
       const financeAmount = isExternalLoan(loan)
         ? Dec(values.price || 0)
             .mul(Dec(values.faceValue || 0))
             .div(loan.pricing.notional.toDecimal())
-        : selectedLoan && isExternalLoan(selectedLoan) ? Dec(values.targetLoanPrice || 0)
-        .mul(Dec(values.targetLoanFaceValue || 0))
-        .div(selectedLoan.pricing.notional.toDecimal()):  Dec(values.amount || 0) 
+        : selectedLoan && isExternalLoan(selectedLoan)
+        ? Dec(values.targetLoanPrice || 0)
+            .mul(Dec(values.targetLoanFaceValue || 0))
+            .div(selectedLoan.pricing.notional.toDecimal())
+        : Dec(values.amount || 0)
 
       let errors: any = {}
-      
-      const error = validate(financeAmount) 
+
+      const error = validate(financeAmount)
       if (error) {
         if (selectedLoan && isExternalLoan(selectedLoan)) {
           errors = setIn(errors, 'targetLoanPrice', error)
         } else {
           errors = setIn(errors, 'amount', error)
         }
       }
-      
+
       return errors
     },
   })
@@ -151,9 +155,11 @@ export function TransferDebtForm({ loan }: { loan: LoanType }) {
     ? Dec(form.values.price || 0)
         .mul(Dec(form.values.faceValue || 0))
         .div(loan.pricing.notional.toDecimal())
-    : selectedLoan && isExternalLoan(selectedLoan) ? Dec(form.values.targetLoanPrice || 0)
-    .mul(Dec(form.values.targetLoanFaceValue || 0))
-    .div(selectedLoan.pricing.notional.toDecimal()):  Dec(form.values.amount || 0) 
+    : selectedLoan && isExternalLoan(selectedLoan)
+    ? Dec(form.values.targetLoanPrice || 0)
+        .mul(Dec(form.values.targetLoanFaceValue || 0))
+        .div(selectedLoan.pricing.notional.toDecimal())
+    : Dec(form.values.amount || 0)
 
   return (
     <Stack as={Card} gap={2} p={2}>
@@ -239,7 +245,10 @@ export function TransferDebtForm({ loan }: { loan: LoanType }) {
                   )
                 }}
               </Field>
-              <Field name="targetLoanPrice" validate={combine(settlementPrice(), maxPriceVariance(selectedLoan.pricing))}>
+              <Field
+                name="targetLoanPrice"
+                validate={combine(settlementPrice(), maxPriceVariance(selectedLoan.pricing))}
+              >
                 {({ field, meta, form }: FieldProps) => {
                   return (
                     <CurrencyInput
@@ -255,9 +264,7 @@ export function TransferDebtForm({ loan }: { loan: LoanType }) {
               </Field>
               <Shelf justifyContent="space-between">
                 <Text variant="emphasized">Total amount</Text>
-                <Text variant="emphasized">
-                    {formatBalance(financeAmount, pool?.currency.symbol, 2)}
-                </Text>
+                <Text variant="emphasized">{formatBalance(financeAmount, pool?.currency.symbol, 2)}</Text>
               </Shelf>
             </>
           )}
@@ -276,8 +283,8 @@ function LoanOption({ loan }: { loan: Loan }) {
   const nft = useCentNFT(loan.asset.collectionId, loan.asset.nftId, false, false)
   const { data: metadata } = useMetadata(nft?.metadataUri, nftMetadataSchema)
   return (
-    <option value={loan.id}>
+    <>
       {loan.id} - {metadata?.name}
-    </option>
+    </>
   )
 }
diff --git a/centrifuge-app/src/utils/useLoans.ts b/centrifuge-app/src/utils/useLoans.ts
@@ -67,10 +67,10 @@ export function useAvailableFinancing(poolId: string, assetId: string) {
   if (loan.status !== 'Active') return { current: initialCeiling, initial: initialCeiling }
 
   const debtWithMargin =
-    'interestRate' in loan.pricing
+    'interestRate' in loan.pricing && 'outstandingPrincipal' in loan
       ? loan.outstandingDebt
           .toDecimal()
-          .add(loan.outstandingDebt.toDecimal().mul(loan.pricing.interestRate.toDecimal().div(365 * 8))) // Additional 3 hour interest as margin
+          .add(loan.outstandingPrincipal.toDecimal().mul(loan.pricing.interestRate.toDecimal().div(365 * 8))) // Additional 3 hour interest as margin
       : Dec(0)
 
   let ceiling = initialCeiling

diff --git a/centrifuge-js/src/modules/pools.ts b/centrifuge-js/src/modules/pools.ts
@@ -464,6 +464,7 @@ export type TinlakeLoan = {
 // transformed type for UI
 export type CreatedLoan = {
   status: 'Created'
+  fetchedAt: Date
   id: string
   poolId: string
   pricing: PricingInfo
@@ -481,6 +482,7 @@ export type CreatedLoan = {
 // transformed type for UI
 export type ActiveLoan = {
   status: 'Active'
+  fetchedAt: Date
   id: string
   poolId: string
   pricing: PricingInfo
@@ -511,6 +513,7 @@ export type ActiveLoan = {
 // transformed type for UI
 export type ClosedLoan = {
   status: 'Closed'
+  fetchedAt: Date
   id: string
   poolId: string
   pricing: PricingInfo
@@ -3074,7 +3077,7 @@ export function getPoolsModule(inst: Centrifuge) {
       filter(({ api, events }) => {
         const event = events.find(
           ({ event }) =>
-            api.events.priceOracle.NewFeedData.is(event) ||
+            api.events.oraclePriceFeed.Fed.is(event) ||
             api.events.loans.Created.is(event) ||
             api.events.loans.Borrowed.is(event) ||
             api.events.loans.Repaid.is(event) ||
@@ -3083,10 +3086,9 @@ export function getPoolsModule(inst: Centrifuge) {
             api.events.loans.Closed.is(event) ||
             api.events.loans.PortfolioValuationUpdated.is(event)
         )
-
         if (!event) return false
-
         const { poolId: eventPoolId } = (event.toHuman() as any).event.data
+        if (!eventPoolId) return true
         return eventPoolId.replace(/\D/g, '') === poolId
       })
     )
@@ -3181,6 +3183,10 @@ export function getPoolsModule(inst: Centrifuge) {
               ? pricingInfo.valuationMethod.discountedCashFlow
               : undefined
           return {
+            // Return the time the loans were fetched, in order to calculate a more accurate/up-to-date outstandingInterest
+            // Mainly for when repaying interest, to repay as close to the correct amount of interest
+            // Refetching before repaying would be another ideas, but less practical with substriptions
+            fetchedAt: new Date(),
             asset: {
               collectionId: collectionId.toString(),
               nftId: nftId.toString(),