From 260a66adf985374a72d704eaf5e1fac15ee14e0f Mon Sep 17 00:00:00 2001
From: shrenujb <98204323+shrenujb@users.noreply.github.com>
Date: Tue, 27 Aug 2024 09:55:59 -0400
Subject: [PATCH] Change PML liquidity tier to isolated (#2157)

Signed-off-by: Shrenuj Bansal <shrenuj@dydx.exchange>
---
 protocol/testutil/constants/genesis.go    | 51 +++++++++++++++++++----
 protocol/x/listing/keeper/listing.go      |  2 +-
 protocol/x/listing/keeper/listing_test.go |  2 +-
 protocol/x/listing/types/constants.go     |  2 +-
 4 files changed, 46 insertions(+), 11 deletions(-)

diff --git a/protocol/testutil/constants/genesis.go b/protocol/testutil/constants/genesis.go
index b7b92fdd2c..e86d07cb4b 100644
--- a/protocol/testutil/constants/genesis.go
+++ b/protocol/testutil/constants/genesis.go
@@ -878,32 +878,67 @@ const GenesisState = `{
     "perpetuals": {
       "liquidity_tiers": [
         {
-          "base_position_notional": 1000000000000,
           "id": 0,
           "impact_notional": 10000000000,
           "initial_margin_ppm": 50000,
           "maintenance_fraction_ppm": 600000,
-          "name": "Large-Cap"
+          "name": "Large-Cap",
+          "open_interest_lower_cap": 0,
+          "open_interest_upper_cap": 0
         },
         {
           "id": 1,
-          "name": "Mid-Cap",
+          "impact_notional": 5000000000,
           "initial_margin_ppm": 100000,
           "maintenance_fraction_ppm": 500000,
-          "base_position_notional": 250000000000,
-          "impact_notional": 5000000000,
+          "name": "Small-Cap",
           "open_interest_lower_cap": 20000000000000,
           "open_interest_upper_cap": 50000000000000
         },
         {
           "id": 2,
-          "name": "Long-Tail",
+          "impact_notional": 2500000000,
           "initial_margin_ppm": 200000,
           "maintenance_fraction_ppm": 500000,
-          "base_position_notional": 100000000000,
-          "impact_notional": 2500000000,
+          "name": "Long-Tail",
           "open_interest_lower_cap": 5000000000000,
           "open_interest_upper_cap": 10000000000000
+        },
+        {
+          "id": 3,
+          "impact_notional": 2500000000,
+          "initial_margin_ppm": 1000000,
+          "maintenance_fraction_ppm": 200000,
+          "name": "Safety",
+          "open_interest_lower_cap": 2000000000000,
+          "open_interest_upper_cap": 5000000000000
+        },
+        {
+          "id": 4,
+          "impact_notional": 2500000000,
+          "initial_margin_ppm": 50000,
+          "maintenance_fraction_ppm": 600000,
+          "name": "Isolated",
+          "open_interest_lower_cap": 500000000000,
+          "open_interest_upper_cap": 1000000000000
+        },
+        {
+          "id": 5,
+          "impact_notional": 5000000000,
+          "initial_margin_ppm": 50000,
+          "maintenance_fraction_ppm": 600000,
+          "name": "Mid-Cap",
+          "open_interest_lower_cap": 40000000000000,
+          "open_interest_upper_cap": 100000000000000
+        },
+        {
+          "id": 6,
+          "impact_notional": 2500000000,
+          "initial_margin_ppm": 10000,
+          "maintenance_fraction_ppm": 500000,
+          "name": "FX",
+          "open_interest_lower_cap": 500000000000,
+          "open_interest_upper_cap": 1000000000000
         }
       ],
       "params": {
diff --git a/protocol/x/listing/keeper/listing.go b/protocol/x/listing/keeper/listing.go
index 85ec52b7d6..f716428c1d 100644
--- a/protocol/x/listing/keeper/listing.go
+++ b/protocol/x/listing/keeper/listing.go
@@ -139,7 +139,7 @@ func (k Keeper) CreatePerpetual(
 		marketId,
 		atomicResolution,
 		types.DefaultFundingPpm,
-		types.LiquidityTier_LongTail,
+		types.LiquidityTier_Isolated,
 		perpetualtypes.PerpetualMarketType_PERPETUAL_MARKET_TYPE_ISOLATED,
 	)
 	if err != nil {
diff --git a/protocol/x/listing/keeper/listing_test.go b/protocol/x/listing/keeper/listing_test.go
index 2679aa68c9..8943e21bd3 100644
--- a/protocol/x/listing/keeper/listing_test.go
+++ b/protocol/x/listing/keeper/listing_test.go
@@ -170,7 +170,7 @@ func TestCreatePerpetual(t *testing.T) {
 					// Expected resolution = -6 - Floor(log10(1000000000)) = -15
 					require.Equal(t, int32(-15), perpetual.Params.AtomicResolution)
 					require.Equal(t, int32(types.DefaultFundingPpm), perpetual.Params.DefaultFundingPpm)
-					require.Equal(t, uint32(types.LiquidityTier_LongTail), perpetual.Params.LiquidityTier)
+					require.Equal(t, uint32(types.LiquidityTier_Isolated), perpetual.Params.LiquidityTier)
 					require.Equal(
 						t, perpetualtypes.PerpetualMarketType_PERPETUAL_MARKET_TYPE_ISOLATED,
 						perpetual.Params.MarketType,
diff --git a/protocol/x/listing/types/constants.go b/protocol/x/listing/types/constants.go
index c4078125c2..b428add511 100644
--- a/protocol/x/listing/types/constants.go
+++ b/protocol/x/listing/types/constants.go
@@ -5,7 +5,7 @@ const (
 
 	DefaultFundingPpm = 0
 
-	LiquidityTier_LongTail uint32 = 2
+	LiquidityTier_Isolated uint32 = 4
 
 	DefaultStepBaseQuantums uint64 = 1_000_000