feat: uninitialize empty ticks (osmosis-labs#5883)

* initial push uninitialize ticks

* check tick fully removed

* update CHANGELOG.md

* add comments / clean up

* Update x/concentrated-liquidity/lp.go

Co-authored-by: Sishir Giri <[email protected]>

---------

Co-authored-by: Sishir Giri <[email protected]>

CHANGELOG.md

@@ -45,6 +45,7 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 ### State Breaking
 
 * [#5532](https://github.com/osmosis-labs/osmosis/pull/5532) fix: Fix x/tokenfactory genesis import denoms reset x/bank existing denom metadata
+* [#5883](https://github.com/osmosis-labs/osmosis/pull/5883) feat: Uninitialize empty ticks
 * [#5874](https://github.com/osmosis-labs/osmosis/pull/5874) Remove Partial Migration from superfluid migration to CL
 * [#5901](https://github.com/osmosis-labs/osmosis/pull/5901) Adding support for CW pools in ProtoRev
 

x/concentrated-liquidity/export_test.go

@@ -98,7 +98,7 @@ func (k Keeper) ComputeInAmtGivenOut(
 	return k.computeInAmtGivenOut(ctx, desiredTokenOut, tokenInDenom, spreadFactor, priceLimit, poolId)
 }
 
-func (k Keeper) InitOrUpdateTick(ctx sdk.Context, poolId uint64, currentTick int64, tickIndex int64, liquidityIn sdk.Dec, upper bool) (err error) {
+func (k Keeper) InitOrUpdateTick(ctx sdk.Context, poolId uint64, currentTick int64, tickIndex int64, liquidityIn sdk.Dec, upper bool) (tickIsEmpty bool, err error) {
 	return k.initOrUpdateTick(ctx, poolId, currentTick, tickIndex, liquidityIn, upper)
 }
 

x/concentrated-liquidity/keeper_test.go

@@ -202,7 +202,7 @@ func (s *KeeperTestSuite) validateTickUpdates(poolId uint64, lowerTick int64, up
 }
 
 func (s *KeeperTestSuite) initializeTick(ctx sdk.Context, currentTick int64, tickIndex int64, initialLiquidity sdk.Dec, spreadRewardGrowthOppositeDirectionOfTraversal sdk.DecCoins, uptimeTrackers []model.UptimeTracker, isLower bool) {
-	err := s.App.ConcentratedLiquidityKeeper.InitOrUpdateTick(ctx, validPoolId, currentTick, tickIndex, initialLiquidity, isLower)
+	_, err := s.App.ConcentratedLiquidityKeeper.InitOrUpdateTick(ctx, validPoolId, currentTick, tickIndex, initialLiquidity, isLower)
 	s.Require().NoError(err)
 
 	tickInfo, err := s.App.ConcentratedLiquidityKeeper.GetTickInfo(ctx, validPoolId, tickIndex)

x/concentrated-liquidity/lp.go

@@ -101,7 +101,7 @@ func (k Keeper) CreatePosition(ctx sdk.Context, poolId uint64, owner sdk.AccAddr
 	}
 
 	// Initialize / update the position in the pool based on the provided tick range and liquidity delta.
-	actualAmount0, actualAmount1, err = k.UpdatePosition(ctx, poolId, owner, lowerTick, upperTick, liquidityDelta, joinTime, positionId)
+	actualAmount0, actualAmount1, _, _, err = k.UpdatePosition(ctx, poolId, owner, lowerTick, upperTick, liquidityDelta, joinTime, positionId)
 	if err != nil {
 		return 0, sdk.Int{}, sdk.Int{}, sdk.Dec{}, 0, 0, err
 	}
@@ -160,9 +160,9 @@ func (k Keeper) CreatePosition(ctx sdk.Context, poolId uint64, owner sdk.AccAddr
 // When the last position within a pool is removed, this function calls an AfterLastPoolPosistionRemoved listener
 // Currently, it creates twap records. Assumming that pool had all liqudity drained and then re-initialized,
 // the whole twap state is completely reset. This is because when there is no liquidity in pool, spot price
-// is undefined.
-// Additionally, when the last position is removed by calling this method, the current sqrt price and current
-// tick of the pool are set to zero.
+// is undefined. When the last position is removed by calling this method, the current sqrt price and current
+// tick of the pool are set to zero. Lastly, if the tick being withdrawn from is now empty due to the withdrawal,
+// it is deleted from state.
 // Returns error if
 // - the provided owner does not own the position being withdrawn
 // - there is no position in the given tick ranges
@@ -219,7 +219,7 @@ func (k Keeper) WithdrawPosition(ctx sdk.Context, owner sdk.AccAddress, position
 	liquidityDelta := requestedLiquidityAmountToWithdraw.Neg()
 
 	// Update the position in the pool based on the provided tick range and liquidity delta.
-	actualAmount0, actualAmount1, err := k.UpdatePosition(ctx, position.PoolId, owner, position.LowerTick, position.UpperTick, liquidityDelta, position.JoinTime, positionId)
+	actualAmount0, actualAmount1, lowerTickIsEmpty, upperTickIsEmpty, err := k.UpdatePosition(ctx, position.PoolId, owner, position.LowerTick, position.UpperTick, liquidityDelta, position.JoinTime, positionId)
 	if err != nil {
 		return sdk.Int{}, sdk.Int{}, err
 	}
@@ -266,6 +266,14 @@ func (k Keeper) WithdrawPosition(ctx sdk.Context, owner sdk.AccAddress, position
 		}
 	}
 
+	// If lowertick/uppertick has no liquidity in it, delete it from state.
+	if lowerTickIsEmpty {
+		k.RemoveTickInfo(ctx, position.PoolId, position.LowerTick)
+	}
+	if upperTickIsEmpty {
+		k.RemoveTickInfo(ctx, position.PoolId, position.UpperTick)
+	}
+
 	tokensRemoved := sdk.Coins{}
 	if actualAmount0.IsPositive() {
 		tokensRemoved = tokensRemoved.Add(sdk.NewCoin(pool.GetToken0(), actualAmount0))
@@ -394,63 +402,64 @@ func (k Keeper) addToPosition(ctx sdk.Context, owner sdk.AccAddress, positionId
 // Updates ticks and pool liquidity. Returns how much of each token is either added or removed.
 // Negative returned amounts imply that tokens are removed from the pool.
 // Positive returned amounts imply that tokens are added to the pool.
+// If the lower and/or upper ticks are being updated to have zero liquidity, a boolean is returned to flag the tick as empty to be deleted at the end of the withdrawPosition method.
 // WARNING: this method may mutate the pool, make sure to refetch the pool after calling this method.
-func (k Keeper) UpdatePosition(ctx sdk.Context, poolId uint64, owner sdk.AccAddress, lowerTick, upperTick int64, liquidityDelta sdk.Dec, joinTime time.Time, positionId uint64) (sdk.Int, sdk.Int, error) {
+func (k Keeper) UpdatePosition(ctx sdk.Context, poolId uint64, owner sdk.AccAddress, lowerTick, upperTick int64, liquidityDelta sdk.Dec, joinTime time.Time, positionId uint64) (sdk.Int, sdk.Int, bool, bool, error) {
 	if err := k.validatePositionUpdateById(ctx, positionId, owner, lowerTick, upperTick, liquidityDelta, joinTime, poolId); err != nil {
-		return sdk.Int{}, sdk.Int{}, err
+		return sdk.Int{}, sdk.Int{}, false, false, err
 	}
 
 	pool, err := k.getPoolById(ctx, poolId)
 	if err != nil {
-		return sdk.Int{}, sdk.Int{}, err
+		return sdk.Int{}, sdk.Int{}, false, false, err
 	}
 
 	currentTick := pool.GetCurrentTick()
 
 	// update lower tickInfo state
-	err = k.initOrUpdateTick(ctx, poolId, currentTick, lowerTick, liquidityDelta, false)
+	lowerTickIsEmpty, err := k.initOrUpdateTick(ctx, poolId, currentTick, lowerTick, liquidityDelta, false)
 	if err != nil {
-		return sdk.Int{}, sdk.Int{}, err
+		return sdk.Int{}, sdk.Int{}, false, false, err
 	}
 
 	// update upper tickInfo state
-	err = k.initOrUpdateTick(ctx, poolId, currentTick, upperTick, liquidityDelta, true)
+	upperTickIsEmpty, err := k.initOrUpdateTick(ctx, poolId, currentTick, upperTick, liquidityDelta, true)
 	if err != nil {
-		return sdk.Int{}, sdk.Int{}, err
+		return sdk.Int{}, sdk.Int{}, false, false, err
 	}
 
 	// update position state
 	err = k.initOrUpdatePosition(ctx, poolId, owner, lowerTick, upperTick, liquidityDelta, joinTime, positionId)
 	if err != nil {
-		return sdk.Int{}, sdk.Int{}, err
+		return sdk.Int{}, sdk.Int{}, false, false, err
 	}
 
 	// Refetch pool to get the updated pool.
 	// Note that updateUptimeAccumulatorsToNow may modify the pool state and rewrite it to the store.
 	pool, err = k.getPoolById(ctx, poolId)
 	if err != nil {
-		return sdk.Int{}, sdk.Int{}, err
+		return sdk.Int{}, sdk.Int{}, false, false, err
 	}
 
 	// calculate the actual amounts of tokens 0 and 1 that were added or removed from the pool.
 	actualAmount0, actualAmount1, err := pool.CalcActualAmounts(ctx, lowerTick, upperTick, liquidityDelta)
 	if err != nil {
-		return sdk.Int{}, sdk.Int{}, err
+		return sdk.Int{}, sdk.Int{}, false, false, err
 	}
 
 	// the pool's liquidity value is only updated if this position is active
 	pool.UpdateLiquidityIfActivePosition(ctx, lowerTick, upperTick, liquidityDelta)
 
 	if err := k.setPool(ctx, pool); err != nil {
-		return sdk.Int{}, sdk.Int{}, err
+		return sdk.Int{}, sdk.Int{}, false, false, err
 	}
 
 	if err := k.initOrUpdatePositionSpreadRewardAccumulator(ctx, poolId, lowerTick, upperTick, positionId, liquidityDelta); err != nil {
-		return sdk.Int{}, sdk.Int{}, err
+		return sdk.Int{}, sdk.Int{}, false, false, err
 	}
 
 	// The returned amounts are rounded down to avoid returning more to clients than they actually deposited.
-	return actualAmount0.TruncateInt(), actualAmount1.TruncateInt(), nil
+	return actualAmount0.TruncateInt(), actualAmount1.TruncateInt(), lowerTickIsEmpty, upperTickIsEmpty, nil
 }
 
 // sendCoinsBetweenPoolAndUser takes the amounts calculated from a join/exit position and executes the send between pool and user

x/concentrated-liquidity/lp_test.go

@@ -414,6 +414,7 @@ func (s *KeeperTestSuite) TestWithdrawPosition() {
 		timeElapsed             time.Duration
 		createLockState         lockState
 		withdrawWithNonOwner    bool
+		isFullLiquidityWithdraw bool
 	}{
 		"base case: withdraw full liquidity amount": {
 			setupConfig: baseCase,
@@ -422,7 +423,8 @@ func (s *KeeperTestSuite) TestWithdrawPosition() {
 				// Note: subtracting one due to truncations in favor of the pool when withdrawing.
 				amount1Expected: baseCase.amount1Expected.Sub(sdk.OneInt()), // 5000 usdc
 			},
-			timeElapsed: defaultTimeElapsed,
+			timeElapsed:             defaultTimeElapsed,
+			isFullLiquidityWithdraw: true,
 		},
 		"withdraw full liquidity amount with underlying lock that has finished unlocking": {
 			setupConfig: baseCase,
@@ -445,8 +447,9 @@ func (s *KeeperTestSuite) TestWithdrawPosition() {
 				liquidityAmount:  FullRangeLiquidityAmt,
 				underlyingLockId: 1,
 			},
-			createLockState: unlocked,
-			timeElapsed:     defaultTimeElapsed,
+			createLockState:         unlocked,
+			timeElapsed:             defaultTimeElapsed,
+			isFullLiquidityWithdraw: true,
 		},
 		"error: withdraw full liquidity amount but still locked": {
 			setupConfig: baseCase,
@@ -484,7 +487,8 @@ func (s *KeeperTestSuite) TestWithdrawPosition() {
 				// Note: subtracting one due to truncations in favor of the pool when withdrawing.
 				amount1Expected: baseCase.amount1Expected.Sub(sdk.OneInt()), // 5000 usdc
 			},
-			timeElapsed: 0,
+			timeElapsed:             0,
+			isFullLiquidityWithdraw: true,
 		},
 		"error: no position created": {
 			setupConfig: baseCase,
@@ -698,6 +702,17 @@ func (s *KeeperTestSuite) TestWithdrawPosition() {
 				s.validatePositionUpdate(s.Ctx, config.positionId, expectedRemainingLiquidity)
 			}
 
+			// Check that ticks were removed if liquidity is fully withdrawn.
+			lowerTickValue := store.Get(types.KeyTick(defaultPoolId, config.lowerTick))
+			upperTickValue := store.Get(types.KeyTick(defaultPoolId, config.upperTick))
+			if tc.isFullLiquidityWithdraw {
+				s.Require().Nil(lowerTickValue)
+				s.Require().Nil(upperTickValue)
+			} else {
+				s.Require().NotNil(lowerTickValue)
+				s.Require().NotNil(upperTickValue)
+			}
+
 			// Check tick state.
 			s.validateTickUpdates(config.poolId, config.lowerTick, config.upperTick, expectedRemainingLiquidity, config.expectedSpreadRewardGrowthOutsideLower, config.expectedSpreadRewardGrowthOutsideUpper)
 
@@ -1601,12 +1616,12 @@ func (s *KeeperTestSuite) TestUpdatePosition() {
 			)
 			s.Require().NoError(err)
 
-			// explicitly make update time different to ensure that the pool is updated with last liqudity update.
+			// explicitly make update time different to ensure that the pool is updated with last liquidity update.
 			expectedUpdateTime := tc.joinTime.Add(time.Second)
 			s.Ctx = s.Ctx.WithBlockTime(expectedUpdateTime)
 
 			// system under test
-			actualAmount0, actualAmount1, err := s.App.ConcentratedLiquidityKeeper.UpdatePosition(
+			actualAmount0, actualAmount1, lowerTickIsEmpty, upperTickIsEmpty, err := s.App.ConcentratedLiquidityKeeper.UpdatePosition(
 				s.Ctx,
 				tc.poolId,
 				s.TestAccs[tc.ownerIndex],
@@ -1624,6 +1639,14 @@ func (s *KeeperTestSuite) TestUpdatePosition() {
 			} else {
 				s.Require().NoError(err)
 
+				if tc.liquidityDelta.Equal(DefaultLiquidityAmt.Neg()) {
+					s.Require().True(lowerTickIsEmpty)
+					s.Require().True(upperTickIsEmpty)
+				} else {
+					s.Require().False(lowerTickIsEmpty)
+					s.Require().False(upperTickIsEmpty)
+				}
+
 				var (
 					expectedAmount0 sdk.Dec
 					expectedAmount1 sdk.Dec

x/concentrated-liquidity/position.go

@@ -572,7 +572,7 @@ func (k Keeper) fungifyChargedPosition(ctx sdk.Context, owner sdk.AccAddress, po
 
 	// Create the new position in the pool based on the provided tick range and liquidity delta.
 	// This also initializes the spread reward accumulator and the uptime accumulators for the new position.
-	_, _, err = k.UpdatePosition(ctx, poolId, owner, lowerTick, upperTick, combinedLiquidityOfAllPositions, joinTime, newPositionId)
+	_, _, _, _, err = k.UpdatePosition(ctx, poolId, owner, lowerTick, upperTick, combinedLiquidityOfAllPositions, joinTime, newPositionId)
 	if err != nil {
 		return 0, err
 	}

x/concentrated-liquidity/spread_rewards_test.go

@@ -1245,10 +1245,10 @@ func (s *KeeperTestSuite) TestInitOrUpdateSpreadRewardAccumulatorPosition_Updati
 				s.crossTickAndChargeSpreadReward(poolId, DefaultLowerTick)
 			}
 
-			err := s.App.ConcentratedLiquidityKeeper.InitOrUpdateTick(s.Ctx, poolId, pool.GetCurrentTick(), DefaultLowerTick, DefaultLiquidityAmt, false)
+			_, err := s.App.ConcentratedLiquidityKeeper.InitOrUpdateTick(s.Ctx, poolId, pool.GetCurrentTick(), DefaultLowerTick, DefaultLiquidityAmt, false)
 			s.Require().NoError(err)
 
-			err = s.App.ConcentratedLiquidityKeeper.InitOrUpdateTick(s.Ctx, poolId, pool.GetCurrentTick(), DefaultUpperTick, DefaultLiquidityAmt, true)
+			_, err = s.App.ConcentratedLiquidityKeeper.InitOrUpdateTick(s.Ctx, poolId, pool.GetCurrentTick(), DefaultUpperTick, DefaultLiquidityAmt, true)
 			s.Require().NoError(err)
 
 			// InitOrUpdateSpreadRewardAccumulatorPosition #1 lower tick to upper tick

x/concentrated-liquidity/tick.go

@@ -23,15 +23,15 @@ import (
 // initOrUpdateTick retrieves the tickInfo from the specified tickIndex and updates both the liquidityNet and LiquidityGross.
 // The given currentTick value is used to determine the strategy for updating the spread factor accumulator.
 // We update the tick's spread reward growth opposite direction of last traversal accumulator to the spread reward growth global when tick index is <= current tick.
-// Otherwise, it is set to zero.
+// Otherwise, it is set to zero. If the liquidityDelta causes the tick to be empty, a boolean flags that the tick is empty for the withdrawPosition method to handle later (removes the tick from state).
 // Note that liquidityDelta can be either positive or negative depending on whether we are adding or removing liquidity.
 // if we are initializing or updating an upper tick, we subtract the liquidityIn from the LiquidityNet
 // if we are initializing or updating a lower tick, we add the liquidityIn from the LiquidityNet
 // WARNING: this method may mutate the pool, make sure to refetch the pool after calling this method.
-func (k Keeper) initOrUpdateTick(ctx sdk.Context, poolId uint64, currentTick int64, tickIndex int64, liquidityDelta sdk.Dec, upper bool) (err error) {
+func (k Keeper) initOrUpdateTick(ctx sdk.Context, poolId uint64, currentTick int64, tickIndex int64, liquidityDelta sdk.Dec, upper bool) (tickIsEmpty bool, err error) {
 	tickInfo, err := k.GetTickInfo(ctx, poolId, tickIndex)
 	if err != nil {
-		return err
+		return false, err
 	}
 
 	// If both liquidity fields are zero, we consume the base gas spread factor for initializing a tick.
@@ -48,7 +48,7 @@ func (k Keeper) initOrUpdateTick(ctx sdk.Context, poolId uint64, currentTick int
 		if tickIndex <= currentTick {
 			accum, err := k.GetSpreadRewardAccumulator(ctx, poolId)
 			if err != nil {
-				return err
+				return false, err
 			}
 
 			tickInfo.SpreadRewardGrowthOppositeDirectionOfLastTraversal = accum.GetValue()
@@ -68,8 +68,13 @@ func (k Keeper) initOrUpdateTick(ctx sdk.Context, poolId uint64, currentTick int
 		tickInfo.LiquidityNet.AddMut(liquidityDelta)
 	}
 
+	// If liquidity is now zero, this tick is flagged to be un-initialized at the end of the withdrawPosition method.
+	if tickInfo.LiquidityGross.IsZero() && tickInfo.LiquidityNet.IsZero() {
+		tickIsEmpty = true
+	}
+
 	k.SetTickInfo(ctx, poolId, tickIndex, &tickInfo)
-	return nil
+	return tickIsEmpty, nil
 }
 
 // crossTick crosses the given tick. The tick is specified by its index and tick info.
@@ -160,6 +165,13 @@ func (k Keeper) SetTickInfo(ctx sdk.Context, poolId uint64, tickIndex int64, tic
 	osmoutils.MustSet(store, key, tickInfo)
 }
 
+// RemoveTickInfo removes the tickInfo from state.
+func (k Keeper) RemoveTickInfo(ctx sdk.Context, poolId uint64, tickIndex int64) {
+	store := ctx.KVStore(k.storeKey)
+	key := types.KeyTick(poolId, tickIndex)
+	store.Delete(key)
+}
+
 func (k Keeper) GetAllInitializedTicksForPool(ctx sdk.Context, poolId uint64) ([]genesis.FullTick, error) {
 	return osmoutils.GatherValuesFromStorePrefixWithKeyParser(ctx.KVStore(k.storeKey), types.KeyTickPrefixByPoolId(poolId), ParseFullTickFromBytes)
 }

x/concentrated-liquidity/tick_test.go

@@ -297,7 +297,8 @@ func (s *KeeperTestSuite) TestInitOrUpdateTick() {
 			if test.tickExists {
 				tickInfoBefore, err := s.App.ConcentratedLiquidityKeeper.GetTickInfo(s.Ctx, 1, test.param.tickIndex)
 				s.Require().NoError(err)
-				err = s.App.ConcentratedLiquidityKeeper.InitOrUpdateTick(s.Ctx, test.param.poolId, currentTick, test.param.tickIndex, DefaultLiquidityAmt, test.param.upper)
+				tickIsEmpty, err := s.App.ConcentratedLiquidityKeeper.InitOrUpdateTick(s.Ctx, test.param.poolId, currentTick, test.param.tickIndex, DefaultLiquidityAmt, test.param.upper)
+				s.Require().False(tickIsEmpty)
 				s.Require().NoError(err)
 				if tickInfoBefore.LiquidityGross.IsZero() && test.param.tickIndex <= pool.GetCurrentTick() {
 					tickInfoAfter, err := s.App.ConcentratedLiquidityKeeper.GetTickInfo(s.Ctx, 1, test.param.tickIndex)
@@ -328,7 +329,7 @@ func (s *KeeperTestSuite) TestInitOrUpdateTick() {
 
 			// System under test.
 			// Initialize or update the tick according to the test case
-			err = s.App.ConcentratedLiquidityKeeper.InitOrUpdateTick(s.Ctx, test.param.poolId, currentTick, test.param.tickIndex, test.param.liquidityIn, test.param.upper)
+			tickIsEmpty, err := s.App.ConcentratedLiquidityKeeper.InitOrUpdateTick(s.Ctx, test.param.poolId, currentTick, test.param.tickIndex, test.param.liquidityIn, test.param.upper)
 			if tickInfoAfter.LiquidityGross.IsZero() && test.param.tickIndex <= pool.GetCurrentTick() {
 				tickInfoAfter, err := s.App.ConcentratedLiquidityKeeper.GetTickInfo(s.Ctx, 1, test.param.tickIndex)
 				s.Require().NoError(err)
@@ -340,6 +341,12 @@ func (s *KeeperTestSuite) TestInitOrUpdateTick() {
 			}
 			s.Require().NoError(err)
 
+			if test.expectedLiquidityGross.IsZero() && test.expectedLiquidityNet.IsZero() {
+				s.Require().True(tickIsEmpty)
+			} else {
+				s.Require().False(tickIsEmpty)
+			}
+
 			// Get the tick info for poolId 1 again
 			tickInfoAfter, err = s.App.ConcentratedLiquidityKeeper.GetTickInfo(s.Ctx, 1, test.param.tickIndex)
 			s.Require().NoError(err)
@@ -454,7 +461,7 @@ func (s *KeeperTestSuite) TestGetTickInfo() {
 			}
 
 			// Set up an initialized tick
-			err := clKeeper.InitOrUpdateTick(s.Ctx, validPoolId, DefaultCurrTick, preInitializedTickIndex, DefaultLiquidityAmt, true)
+			_, err := clKeeper.InitOrUpdateTick(s.Ctx, validPoolId, DefaultCurrTick, preInitializedTickIndex, DefaultLiquidityAmt, true)
 			s.Require().NoError(err)
 
 			// Charge spread factor to make sure that the global spread factor accumulator is always updated.
@@ -622,7 +629,7 @@ func (s *KeeperTestSuite) TestCrossTick() {
 			}
 
 			// Set up an initialized tick
-			err := s.App.ConcentratedLiquidityKeeper.InitOrUpdateTick(s.Ctx, validPoolId, DefaultCurrTick, test.preInitializedTickIndex, DefaultLiquidityAmt, true)
+			_, err := s.App.ConcentratedLiquidityKeeper.InitOrUpdateTick(s.Ctx, validPoolId, DefaultCurrTick, test.preInitializedTickIndex, DefaultLiquidityAmt, true)
 			s.Require().NoError(err)
 
 			// Update global uptime accums for edge case testing