Make liquidity great again (#1020)

* add subsidy

* drizzle liquidity

* update liquidity panel

* remove addliquidity

* update cloud functions index

* remove json endpoints

* imports

* drizzle liquidity: add velocity; dev script; run every minute

* adjust speed

* logging

* liquidity button, dialog

* modal size

* modal

* info table

* pay back excess liquidity

* remove client withdrawal

* house liquidity subsidy

* disable liquidity button if market resolved or closed

* format tip amount

common/add-liquidity.ts

@@ -1,4 +1,4 @@
-import { addCpmmLiquidity, getCpmmLiquidity } from './calculate-cpmm'
+import { getCpmmLiquidity } from './calculate-cpmm'
 import { CPMMContract } from './contract'
 import { LiquidityProvision } from './liquidity-provision'
 
@@ -8,25 +8,23 @@ export const getNewLiquidityProvision = (
   contract: CPMMContract,
   newLiquidityProvisionId: string
 ) => {
-  const { pool, p, totalLiquidity } = contract
+  const { pool, p, totalLiquidity, subsidyPool } = contract
 
-  const { newPool, newP } = addCpmmLiquidity(pool, p, amount)
+  const liquidity = getCpmmLiquidity(pool, p)
-
-  const liquidity =
-    getCpmmLiquidity(newPool, newP) - getCpmmLiquidity(pool, newP)
 
   const newLiquidityProvision: LiquidityProvision = {
     id: newLiquidityProvisionId,
     userId: userId,
     contractId: contract.id,
     amount,
-    pool: newPool,
+    pool,
-    p: newP,
+    p,
     liquidity,
     createdTime: Date.now(),
   }
 
   const newTotalLiquidity = (totalLiquidity ?? 0) + amount
+  const newSubsidyPool = (subsidyPool ?? 0) + amount
 
-  return { newLiquidityProvision, newPool, newP, newTotalLiquidity }
+  return { newLiquidityProvision, newTotalLiquidity, newSubsidyPool }
 }

common/calculate-cpmm.ts

@@ -1,11 +1,10 @@
-import { sum, groupBy, mapValues, sumBy } from 'lodash'
+import { groupBy, mapValues, sumBy } from 'lodash'
 import { LimitBet } from './bet'
 
 import { CREATOR_FEE, Fees, LIQUIDITY_FEE, PLATFORM_FEE } from './fees'
 import { LiquidityProvision } from './liquidity-provision'
 import { computeFills } from './new-bet'
 import { binarySearch } from './util/algos'
-import { addObjects } from './util/object'
 
 export type CpmmState = {
   pool: { [outcome: string]: number }
@@ -267,48 +266,22 @@ export function addCpmmLiquidity(
   return { newPool, liquidity, newP }
 }
 
-const calculateLiquidityDelta = (p: number) => (l: LiquidityProvision) => {
+export function getCpmmLiquidityPoolWeights(liquidities: LiquidityProvision[]) {
-  const oldLiquidity = getCpmmLiquidity(l.pool, p)
+  const userAmounts = groupBy(liquidities, (w) => w.userId)
+  const totalAmount = sumBy(liquidities, (w) => w.amount)
 
-  const newPool = addObjects(l.pool, { YES: l.amount, NO: l.amount })
+  return mapValues(
-  const newLiquidity = getCpmmLiquidity(newPool, p)
+    userAmounts,
-
+    (amounts) => sumBy(amounts, (w) => w.amount) / totalAmount
-  const liquidity = newLiquidity - oldLiquidity
-  return liquidity
-}
-
-export function getCpmmLiquidityPoolWeights(
-  state: CpmmState,
-  liquidities: LiquidityProvision[],
-  excludeAntes: boolean
-) {
-  const calcLiqudity = calculateLiquidityDelta(state.p)
-  const liquidityShares = liquidities.map(calcLiqudity)
-  const shareSum = sum(liquidityShares)
-
-  const weights = liquidityShares.map((shares, i) => ({
-    weight: shares / shareSum,
-    providerId: liquidities[i].userId,
-  }))
-
-  const includedWeights = excludeAntes
-    ? weights.filter((_, i) => !liquidities[i].isAnte)
-    : weights
-
-  const userWeights = groupBy(includedWeights, (w) => w.providerId)
-  const totalUserWeights = mapValues(userWeights, (userWeight) =>
-    sumBy(userWeight, (w) => w.weight)
   )
-  return totalUserWeights
 }
 
 export function getUserLiquidityShares(
   userId: string,
   state: CpmmState,
-  liquidities: LiquidityProvision[],
+  liquidities: LiquidityProvision[]
-  excludeAntes: boolean
 ) {
-  const weights = getCpmmLiquidityPoolWeights(state, liquidities, excludeAntes)
+  const weights = getCpmmLiquidityPoolWeights(liquidities)
   const userWeight = weights[userId] ?? 0
 
   return mapValues(state.pool, (shares) => userWeight * shares)

common/contract.ts

@@ -91,7 +91,8 @@ export type CPMM = {
   mechanism: 'cpmm-1'
   pool: { [outcome: string]: number }
   p: number // probability constant in y^p * n^(1-p) = k
-  totalLiquidity: number // in M$
+  totalLiquidity: number // for historical reasons, this the total subsidy amount added in M$
+  subsidyPool: number // current value of subsidy pool in M$
   prob: number
   probChanges: {
     day: number

common/economy.ts

@@ -16,3 +16,5 @@ export const BETTING_STREAK_BONUS_MAX = econ?.BETTING_STREAK_BONUS_MAX ?? 25
 export const BETTING_STREAK_RESET_HOUR = econ?.BETTING_STREAK_RESET_HOUR ?? 7
 export const FREE_MARKETS_PER_USER_MAX = econ?.FREE_MARKETS_PER_USER_MAX ?? 5
 export const COMMENT_BOUNTY_AMOUNT = econ?.COMMENT_BOUNTY_AMOUNT ?? 250
+
+export const UNIQUE_BETTOR_LIQUIDITY = 20

common/new-contract.ts

@@ -112,6 +112,7 @@ const getBinaryCpmmProps = (initialProb: number, ante: number) => {
     mechanism: 'cpmm-1',
     outcomeType: 'BINARY',
     totalLiquidity: ante,
+    subsidyPool: 0,
     initialProbability: p,
     p,
     pool: pool,

common/payouts-fixed.ts

@@ -1,4 +1,3 @@
-
 import { Bet } from './bet'
 import { getProbability } from './calculate'
 import { getCpmmLiquidityPoolWeights } from './calculate-cpmm'
@@ -56,10 +55,10 @@ export const getLiquidityPoolPayouts = (
   outcome: string,
   liquidities: LiquidityProvision[]
 ) => {
-  const { pool } = contract
+  const { pool, subsidyPool } = contract
-  const finalPool = pool[outcome]
+  const finalPool = pool[outcome] + subsidyPool
 
-  const weights = getCpmmLiquidityPoolWeights(contract, liquidities, false)
+  const weights = getCpmmLiquidityPoolWeights(liquidities)
 
   return Object.entries(weights).map(([providerId, weight]) => ({
     userId: providerId,
@@ -95,10 +94,10 @@ export const getLiquidityPoolProbPayouts = (
   p: number,
   liquidities: LiquidityProvision[]
 ) => {
-  const { pool } = contract
+  const { pool, subsidyPool } = contract
-  const finalPool = p * pool.YES + (1 - p) * pool.NO
+  const finalPool = p * pool.YES + (1 - p) * pool.NO + subsidyPool
 
-  const weights = getCpmmLiquidityPoolWeights(contract, liquidities, false)
+  const weights = getCpmmLiquidityPoolWeights(liquidities)
 
   return Object.entries(weights).map(([providerId, weight]) => ({
     userId: providerId,

common/util/format.ts

@@ -60,6 +60,16 @@ export function formatLargeNumber(num: number, sigfigs = 2): string {
   return `${numStr}${suffix[i] ?? ''}`
 }
 
+export function shortFormatNumber(num: number): string {
+  if (num < 1000) return showPrecision(num, 3)
+
+  const suffix = ['', 'K', 'M', 'B', 'T', 'Q']
+  const i = Math.floor(Math.log10(num) / 3)
+
+  const numStr = showPrecision(num / Math.pow(10, 3 * i), 2)
+  return `${numStr}${suffix[i] ?? ''}`
+}
+
 export function toCamelCase(words: string) {
   const camelCase = words
     .split(' ')

functions/src/add-subsidy.ts

@@ -3,24 +3,18 @@ import { z } from 'zod'
 
 import { Contract, CPMMContract } from '../../common/contract'
 import { User } from '../../common/user'
-import { removeUndefinedProps } from '../../common/util/object'
 import { getNewLiquidityProvision } from '../../common/add-liquidity'
 import { APIError, newEndpoint, validate } from './api'
-import {
-  DEV_HOUSE_LIQUIDITY_PROVIDER_ID,
-  HOUSE_LIQUIDITY_PROVIDER_ID,
-} from '../../common/antes'
-import { isProd } from './utils'
 
 const bodySchema = z.object({
   contractId: z.string(),
   amount: z.number().gt(0),
 })
 
-export const addliquidity = newEndpoint({}, async (req, auth) => {
+export const addsubsidy = newEndpoint({}, async (req, auth) => {
   const { amount, contractId } = validate(bodySchema, req.body)
 
-  if (!isFinite(amount)) throw new APIError(400, 'Invalid amount')
+  if (!isFinite(amount) || amount < 1) throw new APIError(400, 'Invalid amount')
 
   // run as transaction to prevent race conditions
   return await firestore.runTransaction(async (transaction) => {
@@ -50,7 +44,7 @@ export const addliquidity = newEndpoint({}, async (req, auth) => {
       .collection(`contracts/${contractId}/liquidity`)
       .doc()
 
-    const { newLiquidityProvision, newPool, newP, newTotalLiquidity } =
+    const { newLiquidityProvision, newTotalLiquidity, newSubsidyPool } =
       getNewLiquidityProvision(
         user.id,
         amount,
@@ -58,21 +52,10 @@ export const addliquidity = newEndpoint({}, async (req, auth) => {
         newLiquidityProvisionDoc.id
       )
 
-    if (newP !== undefined && !isFinite(newP)) {
+    transaction.update(contractDoc, {
-      return {
+      subsidyPool: newSubsidyPool,
-        status: 'error',
+      totalLiquidity: newTotalLiquidity,
-        message: 'Liquidity injection rejected due to overflow error.',
+    } as Partial<CPMMContract>)
-      }
-    }
-
-    transaction.update(
-      contractDoc,
-      removeUndefinedProps({
-        pool: newPool,
-        p: newP,
-        totalLiquidity: newTotalLiquidity,
-      })
-    )
 
     const newBalance = user.balance - amount
     const newTotalDeposits = user.totalDeposits - amount
@@ -93,41 +76,3 @@ export const addliquidity = newEndpoint({}, async (req, auth) => {
 })
 
 const firestore = admin.firestore()
-
-export const addHouseLiquidity = (contract: CPMMContract, amount: number) => {
-  return firestore.runTransaction(async (transaction) => {
-    const newLiquidityProvisionDoc = firestore
-      .collection(`contracts/${contract.id}/liquidity`)
-      .doc()
-
-    const providerId = isProd()
-      ? HOUSE_LIQUIDITY_PROVIDER_ID
-      : DEV_HOUSE_LIQUIDITY_PROVIDER_ID
-
-    const { newLiquidityProvision, newPool, newP, newTotalLiquidity } =
-      getNewLiquidityProvision(
-        providerId,
-        amount,
-        contract,
-        newLiquidityProvisionDoc.id
-      )
-
-    if (newP !== undefined && !isFinite(newP)) {
-      throw new APIError(
-        500,
-        'Liquidity injection rejected due to overflow error.'
-      )
-    }
-
-    transaction.update(
-      firestore.doc(`contracts/${contract.id}`),
-      removeUndefinedProps({
-        pool: newPool,
-        p: newP,
-        totalLiquidity: newTotalLiquidity,
-      })
-    )
-
-    transaction.create(newLiquidityProvisionDoc, newLiquidityProvision)
-  })
-}

functions/src/drizzle-liquidity.ts

@@ -0,0 +1,69 @@
+import * as functions from 'firebase-functions'
+import * as admin from 'firebase-admin'
+
+import { CPMMContract } from '../../common/contract'
+import { batchedWaitAll } from '../../common/util/promise'
+import { APIError } from '../../common/api'
+import { addCpmmLiquidity } from '../../common/calculate-cpmm'
+import { formatMoneyWithDecimals } from '../../common/util/format'
+
+const firestore = admin.firestore()
+
+export const drizzleLiquidity = async () => {
+  const snap = await firestore
+    .collection('contracts')
+    .where('subsidyPool', '>', 1e-7)
+    .get()
+
+  const contractIds = snap.docs.map((doc) => doc.id)
+  console.log('found', contractIds.length, 'markets to drizzle')
+  console.log()
+
+  await batchedWaitAll(
+    contractIds.map((cid) => () => drizzleMarket(cid)),
+    10
+  )
+}
+
+export const drizzleLiquidityScheduler = functions.pubsub
+  .schedule('* * * * *') // every minute
+  .onRun(drizzleLiquidity)
+
+const drizzleMarket = async (contractId: string) => {
+  await firestore.runTransaction(async (trans) => {
+    const snap = await trans.get(firestore.doc(`contracts/${contractId}`))
+    const contract = snap.data() as CPMMContract
+    const { subsidyPool, pool, p, slug, popularityScore } = contract
+    if ((subsidyPool ?? 0) < 1e-7) return
+
+    const r = Math.random()
+    const logPopularity = Math.log10((popularityScore ?? 0) + 1)
+    const v = Math.max(1, Math.min(5, logPopularity))
+    const amount = subsidyPool <= 0.5 ? subsidyPool : r * v * 0.01 * subsidyPool
+
+    const { newPool, newP } = addCpmmLiquidity(pool, p, amount)
+
+    if (!isFinite(newP)) {
+      throw new APIError(
+        500,
+        'Liquidity injection rejected due to overflow error.'
+      )
+    }
+
+    await trans.update(firestore.doc(`contracts/${contract.id}`), {
+      pool: newPool,
+      p: newP,
+      subsidyPool: subsidyPool - amount,
+    })
+
+    console.log(
+      'added subsidy',
+      formatMoneyWithDecimals(amount),
+      'of',
+      formatMoneyWithDecimals(subsidyPool),
+      'pool to',
+      slug
+    )
+    console.log()
+  })
+}

functions/src/helpers/add-house-subsidy.ts

@@ -0,0 +1,42 @@
+import * as admin from 'firebase-admin'
+
+import { CPMMContract } from '../../../common/contract'
+import { isProd } from '../utils'
+import {
+  DEV_HOUSE_LIQUIDITY_PROVIDER_ID,
+  HOUSE_LIQUIDITY_PROVIDER_ID,
+} from '../../../common/antes'
+import { getNewLiquidityProvision } from '../../../common/add-liquidity'
+
+const firestore = admin.firestore()
+
+export const addHouseSubsidy = (contractId: string, amount: number) => {
+  return firestore.runTransaction(async (transaction) => {
+    const newLiquidityProvisionDoc = firestore
+      .collection(`contracts/${contractId}/liquidity`)
+      .doc()
+
+    const providerId = isProd()
+      ? HOUSE_LIQUIDITY_PROVIDER_ID
+      : DEV_HOUSE_LIQUIDITY_PROVIDER_ID
+
+    const contractDoc = firestore.doc(`contracts/${contractId}`)
+    const snap = await contractDoc.get()
+    const contract = snap.data() as CPMMContract
+
+    const { newLiquidityProvision, newTotalLiquidity, newSubsidyPool } =
+      getNewLiquidityProvision(
+        providerId,
+        amount,
+        contract,
+        newLiquidityProvisionDoc.id
+      )
+
+    transaction.update(contractDoc, {
+      subsidyPool: newSubsidyPool,
+      totalLiquidity: newTotalLiquidity,
+    } as Partial<CPMMContract>)
+
+    transaction.create(newLiquidityProvisionDoc, newLiquidityProvision)
+  })
+}

functions/src/index.ts

@@ -31,6 +31,7 @@ export * from './reset-weekly-emails-flags'
 export * from './on-update-contract-follow'
 export * from './on-update-like'
 export * from './weekly-portfolio-emails'
+export * from './drizzle-liquidity'
 
 // v2
 export * from './health'
@@ -44,8 +45,6 @@ export * from './sell-bet'
 export * from './sell-shares'
 export * from './claim-manalink'
 export * from './create-market'
-export * from './add-liquidity'
-export * from './withdraw-liquidity'
 export * from './create-group'
 export * from './resolve-market'
 export * from './unsubscribe'
@@ -53,6 +52,7 @@ export * from './stripe'
 export * from './mana-bonus-email'
 export * from './close-market'
 export * from './update-comment-bounty'
+export * from './add-subsidy'
 
 import { health } from './health'
 import { transact } from './transact'
@@ -65,9 +65,7 @@ import { sellbet } from './sell-bet'
 import { sellshares } from './sell-shares'
 import { claimmanalink } from './claim-manalink'
 import { createmarket } from './create-market'
-import { addliquidity } from './add-liquidity'
 import { addcommentbounty, awardcommentbounty } from './update-comment-bounty'
-import { withdrawliquidity } from './withdraw-liquidity'
 import { creategroup } from './create-group'
 import { resolvemarket } from './resolve-market'
 import { closemarket } from './close-market'
@@ -78,6 +76,7 @@ import { acceptchallenge } from './accept-challenge'
 import { createpost } from './create-post'
 import { savetwitchcredentials } from './save-twitch-credentials'
 import { updatemetrics } from './update-metrics'
+import { addsubsidy } from './add-subsidy'
 
 const toCloudFunction = ({ opts, handler }: EndpointDefinition) => {
   return onRequest(opts, handler as any)
@@ -93,10 +92,9 @@ const sellBetFunction = toCloudFunction(sellbet)
 const sellSharesFunction = toCloudFunction(sellshares)
 const claimManalinkFunction = toCloudFunction(claimmanalink)
 const createMarketFunction = toCloudFunction(createmarket)
-const addLiquidityFunction = toCloudFunction(addliquidity)
+const addSubsidyFunction = toCloudFunction(addsubsidy)
 const addCommentBounty = toCloudFunction(addcommentbounty)
 const awardCommentBounty = toCloudFunction(awardcommentbounty)
-const withdrawLiquidityFunction = toCloudFunction(withdrawliquidity)
 const createGroupFunction = toCloudFunction(creategroup)
 const resolveMarketFunction = toCloudFunction(resolvemarket)
 const closeMarketFunction = toCloudFunction(closemarket)
@@ -121,8 +119,7 @@ export {
   sellSharesFunction as sellshares,
   claimManalinkFunction as claimmanalink,
   createMarketFunction as createmarket,
-  addLiquidityFunction as addliquidity,
+  addSubsidyFunction as addsubsidy,
-  withdrawLiquidityFunction as withdrawliquidity,
   createGroupFunction as creategroup,
   resolveMarketFunction as resolvemarket,
   closeMarketFunction as closemarket,

functions/src/on-create-bet.ts

@@ -25,6 +25,7 @@ import {
   BETTING_STREAK_BONUS_MAX,
   BETTING_STREAK_RESET_HOUR,
   UNIQUE_BETTOR_BONUS_AMOUNT,
+  UNIQUE_BETTOR_LIQUIDITY,
 } from '../../common/economy'
 import {
   DEV_HOUSE_LIQUIDITY_PROVIDER_ID,
@@ -34,6 +35,7 @@ import { APIError } from '../../common/api'
 import { User } from '../../common/user'
 import { DAY_MS } from '../../common/util/time'
 import { BettingStreakBonusTxn, UniqueBettorBonusTxn } from '../../common/txn'
+import { addHouseSubsidy } from './helpers/add-house-subsidy'
 import {
   StreakerBadge,
   streakerBadgeRarityThresholds,
@@ -108,7 +110,7 @@ const updateBettingStreak = async (
 
     const newBettingStreak = (bettor?.currentBettingStreak ?? 0) + 1
     // Otherwise, add 1 to their betting streak
-    await trans.update(userDoc, {
+    trans.update(userDoc, {
       currentBettingStreak: newBettingStreak,
       lastBetTime: bet.createdTime,
     })
@@ -198,7 +200,7 @@ const updateUniqueBettorsAndGiveCreatorBonus = async (
         log(`Got ${previousUniqueBettorIds} unique bettors`)
         isNewUniqueBettor && log(`And a new unique bettor ${bettor.id}`)
 
-        await trans.update(contractDoc, {
+        trans.update(contractDoc, {
           uniqueBettorIds: newUniqueBettorIds,
           uniqueBettorCount: newUniqueBettorIds.length,
         })
@@ -211,8 +213,13 @@ const updateUniqueBettorsAndGiveCreatorBonus = async (
       return { newUniqueBettorIds }
     }
   )
+
   if (!newUniqueBettorIds) return
 
+  if (oldContract.mechanism === 'cpmm-1') {
+    await addHouseSubsidy(oldContract.id, UNIQUE_BETTOR_LIQUIDITY)
+  }
+
   const bonusTxnDetails = {
     contractId: oldContract.id,
     uniqueNewBettorId: bettor.id,
@@ -222,7 +229,9 @@ const updateUniqueBettorsAndGiveCreatorBonus = async (
     : DEV_HOUSE_LIQUIDITY_PROVIDER_ID
   const fromSnap = await firestore.doc(`users/${fromUserId}`).get()
   if (!fromSnap.exists) throw new APIError(400, 'From user not found.')
+
   const fromUser = fromSnap.data() as User
+
   const result = await firestore.runTransaction(async (trans) => {
     const bonusTxn: TxnData = {
       fromId: fromUser.id,
@@ -235,7 +244,9 @@ const updateUniqueBettorsAndGiveCreatorBonus = async (
       description: JSON.stringify(bonusTxnDetails),
       data: bonusTxnDetails,
     } as Omit<UniqueBettorBonusTxn, 'id' | 'createdTime'>
+
     const { status, message, txn } = await runTxn(trans, bonusTxn)
+
     return { status, newUniqueBettorIds, message, txn }
   })
 

functions/src/resolve-market.ts

@@ -9,7 +9,15 @@ import {
   RESOLUTIONS,
 } from '../../common/contract'
 import { Bet } from '../../common/bet'
-import { getContractPath, getUser, getValues, isProd, log, payUser, revalidateStaticProps } from './utils'
+import {
+  getContractPath,
+  getUser,
+  getValues,
+  isProd,
+  log,
+  payUser,
+  revalidateStaticProps,
+} from './utils'
 import {
   getLoanPayouts,
   getPayouts,
@@ -145,6 +153,7 @@ export const resolvemarket = newEndpoint(opts, async (req, auth) => {
       resolutions,
       collectedFees,
     }),
+    subsidyPool: 0,
   }
 
   await contractDoc.update(updatedContract)

functions/src/scripts/drizzle.ts

@@ -0,0 +1,8 @@
+import { initAdmin } from './script-init'
+initAdmin()
+
+import { drizzleLiquidity } from '../drizzle-liquidity'
+
+if (require.main === module) {
+  drizzleLiquidity().then(() => process.exit())
+}

functions/src/serve.ts

@@ -19,8 +19,6 @@ import { sellbet } from './sell-bet'
 import { sellshares } from './sell-shares'
 import { claimmanalink } from './claim-manalink'
 import { createmarket } from './create-market'
-import { addliquidity } from './add-liquidity'
-import { withdrawliquidity } from './withdraw-liquidity'
 import { creategroup } from './create-group'
 import { resolvemarket } from './resolve-market'
 import { unsubscribe } from './unsubscribe'
@@ -61,10 +59,8 @@ addJsonEndpointRoute('/sellbet', sellbet)
 addJsonEndpointRoute('/sellshares', sellshares)
 addJsonEndpointRoute('/claimmanalink', claimmanalink)
 addJsonEndpointRoute('/createmarket', createmarket)
-addJsonEndpointRoute('/addliquidity', addliquidity)
 addJsonEndpointRoute('/addCommentBounty', addcommentbounty)
 addJsonEndpointRoute('/awardCommentBounty', awardcommentbounty)
-addJsonEndpointRoute('/withdrawliquidity', withdrawliquidity)
 addJsonEndpointRoute('/creategroup', creategroup)
 addJsonEndpointRoute('/resolvemarket', resolvemarket)
 addJsonEndpointRoute('/unsubscribe', unsubscribe)

functions/src/withdraw-liquidity.ts

@@ -1,121 +0,0 @@
-import * as admin from 'firebase-admin'
-import { z } from 'zod'
-
-import { CPMMContract } from '../../common/contract'
-import { User } from '../../common/user'
-import { subtractObjects } from '../../common/util/object'
-import { LiquidityProvision } from '../../common/liquidity-provision'
-import { getUserLiquidityShares } from '../../common/calculate-cpmm'
-import { Bet } from '../../common/bet'
-import { getProbability } from '../../common/calculate'
-import { noFees } from '../../common/fees'
-
-import { APIError, newEndpoint, validate } from './api'
-import { redeemShares } from './redeem-shares'
-
-const bodySchema = z.object({
-  contractId: z.string(),
-})
-
-export const withdrawliquidity = newEndpoint({}, async (req, auth) => {
-  const { contractId } = validate(bodySchema, req.body)
-
-  return await firestore
-    .runTransaction(async (trans) => {
-      const lpDoc = firestore.doc(`users/${auth.uid}`)
-      const lpSnap = await trans.get(lpDoc)
-      if (!lpSnap.exists) throw new APIError(400, 'User not found.')
-      const lp = lpSnap.data() as User
-
-      const contractDoc = firestore.doc(`contracts/${contractId}`)
-      const contractSnap = await trans.get(contractDoc)
-      if (!contractSnap.exists) throw new APIError(400, 'Contract not found.')
-      const contract = contractSnap.data() as CPMMContract
-
-      const liquidityCollection = firestore.collection(
-        `contracts/${contractId}/liquidity`
-      )
-
-      const liquiditiesSnap = await trans.get(liquidityCollection)
-
-      const liquidities = liquiditiesSnap.docs.map(
-        (doc) => doc.data() as LiquidityProvision
-      )
-
-      const userShares = getUserLiquidityShares(
-        auth.uid,
-        contract,
-        liquidities,
-        true
-      )
-
-      // zero all added amounts for now
-      // can add support for partial withdrawals in the future
-      liquiditiesSnap.docs
-        .filter(
-          (_, i) => !liquidities[i].isAnte && liquidities[i].userId === auth.uid
-        )
-        .forEach((doc) => trans.update(doc.ref, { amount: 0 }))
-
-      const payout = Math.min(...Object.values(userShares))
-      if (payout <= 0) return {}
-
-      const newBalance = lp.balance + payout
-      const newTotalDeposits = lp.totalDeposits + payout
-      trans.update(lpDoc, {
-        balance: newBalance,
-        totalDeposits: newTotalDeposits,
-      } as Partial<User>)
-
-      const newPool = subtractObjects(contract.pool, userShares)
-
-      const minPoolShares = Math.min(...Object.values(newPool))
-      const adjustedTotal = contract.totalLiquidity - payout
-
-      // total liquidity is a bogus number; use minPoolShares to prevent from going negative
-      const newTotalLiquidity = Math.max(adjustedTotal, minPoolShares)
-
-      trans.update(contractDoc, {
-        pool: newPool,
-        totalLiquidity: newTotalLiquidity,
-      })
-
-      const prob = getProbability(contract)
-
-      // surplus shares become user's bets
-      const bets = Object.entries(userShares)
-        .map(([outcome, shares]) =>
-          shares - payout < 1 // don't create bet if less than 1 share
-            ? undefined
-            : ({
-                userId: auth.uid,
-                contractId: contract.id,
-                amount:
-                  (outcome === 'YES' ? prob : 1 - prob) * (shares - payout),
-                shares: shares - payout,
-                outcome,
-                probBefore: prob,
-                probAfter: prob,
-                createdTime: Date.now(),
-                isLiquidityProvision: true,
-                fees: noFees,
-              } as Omit<Bet, 'id'>)
-        )
-        .filter((x) => x !== undefined)
-
-      for (const bet of bets) {
-        const doc = firestore.collection(`contracts/${contract.id}/bets`).doc()
-        trans.create(doc, { id: doc.id, ...bet })
-      }
-
-      return userShares
-    })
-    .then(async (result) => {
-      // redeem surplus bet with pre-existing bets
-      await redeemShares(auth.uid, contractId)
-      console.log('userid', auth.uid, 'withdraws', result)
-      return result
-    })
-})
-
-const firestore = admin.firestore()

web/components/contract/contract-info-dialog.tsx

@@ -7,7 +7,6 @@ import { capitalize } from 'lodash'
 import { Contract } from 'common/contract'
 import { formatMoney, formatPercent } from 'common/util/format'
 import { contractPool, updateContract } from 'web/lib/firebase/contracts'
-import { LiquidityBountyPanel } from 'web/components/contract/liquidity-bounty-panel'
 import { Col } from '../layout/col'
 import { Modal } from '../layout/modal'
 import { Title } from '../title'
@@ -55,6 +54,7 @@ export function ContractInfoDialog(props: {
     outcomeType,
     id,
     elasticity,
+    pool,
   } = contract
 
   const typeDisplay =
@@ -172,10 +172,25 @@ export function ContractInfoDialog(props: {
               </tr>
 
               <tr>
+                <td>Liquidity subsidies</td>
                 <td>
-                  {mechanism === 'cpmm-1' ? 'Liquidity pool' : 'Betting pool'}
+                  {mechanism === 'cpmm-1'
+                    ? formatMoney(contract.totalLiquidity)
+                    : formatMoney(100)}
+                </td>
+              </tr>
+
+              <tr>
+                <td>Pool</td>
+                <td>
+                  {mechanism === 'cpmm-1' && outcomeType === 'BINARY'
+                    ? `${Math.round(pool.YES)} YES, ${Math.round(pool.NO)} NO`
+                    : mechanism === 'cpmm-1' && outcomeType === 'PSEUDO_NUMERIC'
+                    ? `${Math.round(pool.YES)} HIGHER, ${Math.round(
+                        pool.NO
+                      )} LOWER`
+                    : contractPool(contract)}
                 </td>
-                <td>{contractPool(contract)}</td>
               </tr>
 
               {/* Show a path to Firebase if user is an admin, or we're on localhost */}
@@ -228,7 +243,6 @@ export function ContractInfoDialog(props: {
           <Row className="flex-wrap">
             <DuplicateContractButton contract={contract} />
           </Row>
-          {!contract.resolution && <LiquidityBountyPanel contract={contract} />}
         </Col>
       </Modal>
     </>

web/components/contract/extra-contract-actions-row.tsx

@@ -9,6 +9,7 @@ import { FollowMarketButton } from 'web/components/follow-market-button'
 import { LikeMarketButton } from 'web/components/contract/like-market-button'
 import { ContractInfoDialog } from 'web/components/contract/contract-info-dialog'
 import { Tooltip } from '../tooltip'
+import { LiquidityButton } from './liquidity-button'
 
 export function ExtraContractActionsRow(props: { contract: Contract }) {
   const { contract } = props
@@ -18,6 +19,9 @@ export function ExtraContractActionsRow(props: { contract: Contract }) {
   return (
     <Row>
       <FollowMarketButton contract={contract} user={user} />
+      {contract.mechanism === 'cpmm-1' && (
+        <LiquidityButton contract={contract} user={user} />
+      )}
       <LikeMarketButton contract={contract} user={user} />
       <Tooltip text="Share" placement="bottom" noTap noFade>
         <Button

web/components/contract/liquidity-bounty-panel.tsx

@@ -1,248 +0,0 @@
-import clsx from 'clsx'
-import { useEffect, useState } from 'react'
-
-import { Contract, CPMMContract } from 'common/contract'
-import { formatMoney } from 'common/util/format'
-import { useUser } from 'web/hooks/use-user'
-import { addLiquidity, withdrawLiquidity } from 'web/lib/firebase/api'
-import { AmountInput } from 'web/components/amount-input'
-import { Row } from 'web/components/layout/row'
-import { useUserLiquidity } from 'web/hooks/use-liquidity'
-import { Tabs } from 'web/components/layout/tabs'
-import { NoLabel, YesLabel } from 'web/components/outcome-label'
-import { Col } from 'web/components/layout/col'
-import { track } from 'web/lib/service/analytics'
-import { InfoTooltip } from 'web/components/info-tooltip'
-import { BETTORS, PRESENT_BET } from 'common/user'
-import { buildArray } from 'common/util/array'
-import { useAdmin } from 'web/hooks/use-admin'
-import { AlertBox } from '../alert-box'
-import { Spacer } from '../layout/spacer'
-
-export function LiquidityBountyPanel(props: { contract: Contract }) {
-  const { contract } = props
-
-  const isCPMM = contract.mechanism === 'cpmm-1'
-  const user = useUser()
-  // eslint-disable-next-line react-hooks/rules-of-hooks
-  const lpShares = isCPMM && useUserLiquidity(contract, user?.id ?? '')
-
-  const [showWithdrawal, setShowWithdrawal] = useState(false)
-
-  useEffect(() => {
-    if (!showWithdrawal && lpShares && lpShares.YES && lpShares.NO)
-      setShowWithdrawal(true)
-  }, [showWithdrawal, lpShares])
-
-  const isCreator = user?.id === contract.creatorId
-  const isAdmin = useAdmin()
-
-  if (!isCreator && !isAdmin && !showWithdrawal) return <></>
-
-  return (
-    <Tabs
-      tabs={buildArray(
-        (isCreator || isAdmin) &&
-          isCPMM && {
-            title: (isAdmin ? '[Admin] ' : '') + 'Subsidize',
-            content: <AddLiquidityPanel contract={contract} />,
-          },
-        showWithdrawal &&
-          isCPMM && {
-            title: 'Withdraw',
-            content: (
-              <WithdrawLiquidityPanel
-                contract={contract}
-                lpShares={lpShares as { YES: number; NO: number }}
-              />
-            ),
-          },
-
-        (isCreator || isAdmin) &&
-          isCPMM && {
-            title: 'Pool',
-            content: <ViewLiquidityPanel contract={contract} />,
-          }
-      )}
-    />
-  )
-}
-
-function AddLiquidityPanel(props: { contract: CPMMContract }) {
-  const { contract } = props
-  const { id: contractId, slug } = contract
-
-  const user = useUser()
-
-  const [amount, setAmount] = useState<number | undefined>(undefined)
-  const [error, setError] = useState<string | undefined>(undefined)
-  const [isSuccess, setIsSuccess] = useState(false)
-  const [isLoading, setIsLoading] = useState(false)
-
-  const onAmountChange = (amount: number | undefined) => {
-    setIsSuccess(false)
-    setAmount(amount)
-
-    // Check for errors.
-    if (amount !== undefined) {
-      if (user && user.balance < amount) {
-        setError('Insufficient balance')
-      } else if (amount < 1) {
-        setError('Minimum amount: ' + formatMoney(1))
-      } else {
-        setError(undefined)
-      }
-    }
-  }
-
-  const submit = () => {
-    if (!amount) return
-
-    setIsLoading(true)
-    setIsSuccess(false)
-
-    addLiquidity({ amount, contractId })
-      .then((_) => {
-        setIsSuccess(true)
-        setError(undefined)
-        setIsLoading(false)
-      })
-      .catch((_) => setError('Server error'))
-
-    track('add liquidity', { amount, contractId, slug })
-  }
-
-  return (
-    <>
-      <div className="mb-4 text-gray-500">
-        Contribute your M$ to make this market more accurate.{' '}
-        <InfoTooltip
-          text={`More liquidity stabilizes the market, encouraging ${BETTORS} to ${PRESENT_BET}.`}
-        />
-      </div>
-
-      <Row>
-        <AmountInput
-          amount={amount}
-          onChange={onAmountChange}
-          label="M$"
-          error={error}
-          disabled={isLoading}
-          inputClassName="w-28"
-        />
-        <button
-          className={clsx('btn btn-primary ml-2', isLoading && 'btn-disabled')}
-          onClick={submit}
-          disabled={isLoading}
-        >
-          Add
-        </button>
-      </Row>
-
-      {isSuccess && amount && (
-        <div>Success! Added {formatMoney(amount)} in liquidity.</div>
-      )}
-
-      {isLoading && <div>Processing...</div>}
-
-      <Spacer h={2} />
-      <AlertBox
-        title="Withdrawals ending"
-        text="Manifold is moving to a new system for handling subsidization. As part of this process, liquidity withdrawals will be disabled shortly. Feel free to withdraw any outstanding liquidity you've added now."
-      />
-    </>
-  )
-}
-
-function ViewLiquidityPanel(props: { contract: CPMMContract }) {
-  const { contract } = props
-  const { pool } = contract
-  const { YES: yesShares, NO: noShares } = pool
-
-  return (
-    <Col className="mb-4">
-      <div className="mb-4 text-gray-500">
-        The liquidity pool for this market currently contains:
-      </div>
-      <span>
-        {yesShares.toFixed(2)} <YesLabel /> shares
-      </span>
-
-      <span>
-        {noShares.toFixed(2)} <NoLabel /> shares
-      </span>
-    </Col>
-  )
-}
-
-function WithdrawLiquidityPanel(props: {
-  contract: CPMMContract
-  lpShares: { YES: number; NO: number }
-}) {
-  const { contract, lpShares } = props
-  const { YES: yesShares, NO: noShares } = lpShares
-
-  const [_error, setError] = useState<string | undefined>(undefined)
-  const [isSuccess, setIsSuccess] = useState(false)
-  const [isLoading, setIsLoading] = useState(false)
-
-  const submit = () => {
-    setIsLoading(true)
-    setIsSuccess(false)
-
-    withdrawLiquidity({ contractId: contract.id })
-      .then((_) => {
-        setIsSuccess(true)
-        setError(undefined)
-        setIsLoading(false)
-      })
-      .catch((_) => setError('Server error'))
-
-    track('withdraw liquidity')
-  }
-
-  if (isSuccess)
-    return (
-      <div className="text-gray-500">
-        Success! Your liquidity was withdrawn.
-      </div>
-    )
-
-  if (!yesShares && !noShares)
-    return (
-      <div className="text-gray-500">
-        You do not have any liquidity positions to withdraw.
-      </div>
-    )
-
-  return (
-    <Col>
-      <div className="mb-4 text-gray-500">
-        Your liquidity position is currently:
-      </div>
-
-      <span>
-        {yesShares.toFixed(2)} <YesLabel /> shares
-      </span>
-
-      <span>
-        {noShares.toFixed(2)} <NoLabel /> shares
-      </span>
-
-      <Row className="mt-4 mb-2">
-        <button
-          className={clsx(
-            'btn btn-outline btn-sm ml-2',
-            isLoading && 'btn-disabled'
-          )}
-          onClick={submit}
-          disabled={isLoading}
-        >
-          Withdraw
-        </button>
-      </Row>
-
-      {isLoading && <div>Processing...</div>}
-    </Col>
-  )
-}

web/components/contract/liquidity-button.tsx

@@ -0,0 +1,92 @@
+import { useState } from 'react'
+import clsx from 'clsx'
+
+import { Button } from 'web/components/button'
+import { formatMoney, shortFormatNumber } from 'common/util/format'
+import { Col } from 'web/components/layout/col'
+import { Tooltip } from '../tooltip'
+import { CPMMContract } from 'common/contract'
+import { User } from 'common/user'
+import { useLiquidity } from 'web/hooks/use-liquidity'
+import { LiquidityModal } from './liquidity-modal'
+
+export function LiquidityButton(props: {
+  contract: CPMMContract
+  user: User | undefined | null
+}) {
+  const { contract, user } = props
+  const { totalLiquidity: total } = contract
+
+  const lp = useLiquidity(contract.id)
+  const userActive = lp?.find((l) => l.userId === user?.id) !== undefined
+
+  const [open, setOpen] = useState(false)
+
+  const disabled =
+    contract.isResolved || (contract.closeTime ?? Infinity) < Date.now()
+
+  return (
+    <Tooltip
+      text={`${formatMoney(total)} in liquidity subsidies`}
+      placement="bottom"
+      noTap
+      noFade
+    >
+      <LiquidityIconButton
+        total={total}
+        userActive={userActive}
+        onClick={() => setOpen(true)}
+        disabled={disabled}
+      />
+      <LiquidityModal contract={contract} isOpen={open} setOpen={setOpen} />
+    </Tooltip>
+  )
+}
+
+function LiquidityIconButton(props: {
+  total: number
+  onClick: () => void
+  userActive: boolean
+  isCompact?: boolean
+  disabled?: boolean
+}) {
+  const { total, userActive, isCompact, onClick, disabled } = props
+
+  return (
+    <Button
+      size={'sm'}
+      className={clsx(
+        'max-w-xs self-center pt-1',
+        isCompact && 'px-0 py-0',
+        disabled && 'hover:bg-inherit'
+      )}
+      color={'gray-white'}
+      onClick={onClick}
+      disabled={disabled}
+    >
+      <Col className={'relative items-center sm:flex-row'}>
+        <span
+          className={clsx(
+            'text-xl sm:text-2xl',
+            total > 0 ? 'mr-2' : '',
+            userActive ? '' : 'grayscale'
+          )}
+        >
+          💧
+        </span>
+        {total > 0 && (
+          <div
+            className={clsx(
+              'bg-greyscale-5 absolute ml-3.5 mt-2 h-4 w-4 rounded-full align-middle text-white sm:mt-3 sm:h-5 sm:w-5 sm:px-1',
+              total > 99
+                ? 'text-[0.4rem] sm:text-[0.5rem]'
+                : 'sm:text-2xs text-[0.5rem]'
+            )}
+          >
+            {shortFormatNumber(total)}
+          </div>
+        )}
+      </Col>
+    </Button>
+  )
+}

web/components/contract/liquidity-modal.tsx

@@ -0,0 +1,108 @@
+import { CPMMContract } from 'common/contract'
+import { formatMoney } from 'common/util/format'
+import { useState } from 'react'
+import { useUser } from 'web/hooks/use-user'
+import { addSubsidy } from 'web/lib/firebase/api'
+import { track } from 'web/lib/service/analytics'
+import { AmountInput } from '../amount-input'
+import { Button } from '../button'
+import { InfoTooltip } from '../info-tooltip'
+import { Col } from '../layout/col'
+import { Modal } from '../layout/modal'
+import { Row } from '../layout/row'
+import { Title } from '../title'
+
+export function LiquidityModal(props: {
+  contract: CPMMContract
+  isOpen: boolean
+  setOpen: (open: boolean) => void
+}) {
+  const { contract, isOpen, setOpen } = props
+  const { totalLiquidity } = contract
+
+  return (
+    <Modal open={isOpen} setOpen={setOpen} size="sm">
+      <Col className="gap-2.5 rounded  bg-white p-4 pb-8 sm:gap-4">
+        <Title className="!mt-0 !mb-2" text="💧 Add a subsidy" />
+
+        <div>Total liquidity subsidies: {formatMoney(totalLiquidity)}</div>
+        <AddLiquidityPanel contract={contract as CPMMContract} />
+      </Col>
+    </Modal>
+  )
+}
+
+function AddLiquidityPanel(props: { contract: CPMMContract }) {
+  const { contract } = props
+  const { id: contractId, slug } = contract
+
+  const user = useUser()
+
+  const [amount, setAmount] = useState<number | undefined>(undefined)
+  const [error, setError] = useState<string | undefined>(undefined)
+  const [isSuccess, setIsSuccess] = useState(false)
+  const [isLoading, setIsLoading] = useState(false)
+
+  const onAmountChange = (amount: number | undefined) => {
+    setIsSuccess(false)
+    setAmount(amount)
+
+    // Check for errors.
+    if (amount !== undefined) {
+      if (user && user.balance < amount) {
+        setError('Insufficient balance')
+      } else if (amount < 1) {
+        setError('Minimum amount: ' + formatMoney(1))
+      } else {
+        setError(undefined)
+      }
+    }
+  }
+
+  const submit = () => {
+    if (!amount) return
+
+    setIsLoading(true)
+    setIsSuccess(false)
+
+    addSubsidy({ amount, contractId })
+      .then((_) => {
+        setIsSuccess(true)
+        setError(undefined)
+        setIsLoading(false)
+      })
+      .catch((_) => setError('Server error'))
+
+    track('add liquidity', { amount, contractId, slug })
+  }
+
+  return (
+    <>
+      <div className="mb-4 text-gray-500">
+        Contribute your M$ to make this market more accurate by subsidizing
+        trading.{' '}
+        <InfoTooltip text="Liquidity is how much money traders can make if they're right. The more traders can earn, the greater the incentive to find the correct probability." />
+      </div>
+
+      <Row>
+        <AmountInput
+          amount={amount}
+          onChange={onAmountChange}
+          label="M$"
+          error={error}
+          disabled={isLoading}
+          inputClassName="w-16 mr-4"
+        />
+        <Button size="md" color="blue" onClick={submit} disabled={isLoading}>
+          Add
+        </Button>
+      </Row>
+
+      {isSuccess && amount && (
+        <div>Success! Added {formatMoney(amount)} in liquidity.</div>
+      )}
+
+      {isLoading && <div>Processing...</div>}
+    </>
+  )
+}

web/components/contract/tip-button.tsx

@@ -1,7 +1,8 @@
-import { HeartIcon } from '@heroicons/react/outline'
-import { Button } from 'web/components/button'
-import { formatMoney } from 'common/util/format'
 import clsx from 'clsx'
+import { HeartIcon } from '@heroicons/react/outline'
+
+import { Button } from 'web/components/button'
+import { formatMoney, shortFormatNumber } from 'common/util/format'
 import { Col } from 'web/components/layout/col'
 import { Tooltip } from '../tooltip'
 
@@ -51,7 +52,7 @@ export function TipButton(props: {
                   : 'sm:text-2xs text-[0.5rem]'
               )}
             >
-              {totalTipped}
+              {shortFormatNumber(totalTipped)}
             </div>
           )}
         </Col>

web/hooks/use-liquidity.ts

@@ -21,11 +21,6 @@ export const useLiquidity = (contractId: string) => {
 export const useUserLiquidity = (contract: CPMMContract, userId: string) => {
   const liquidities = useLiquidity(contract.id)
 
-  const userShares = getUserLiquidityShares(
+  const userShares = getUserLiquidityShares(userId, contract, liquidities ?? [])
-    userId,
-    contract,
-    liquidities ?? [],
-    true
-  )
   return userShares
 }

web/lib/firebase/api.ts

@@ -42,8 +42,8 @@ export function changeUserInfo(params: any) {
   return call(getFunctionUrl('changeuserinfo'), 'POST', params)
 }
 
-export function addLiquidity(params: any) {
+export function addSubsidy(params: any) {
-  return call(getFunctionUrl('addliquidity'), 'POST', params)
+  return call(getFunctionUrl('addsubsidy'), 'POST', params)
 }
 
 export function addCommentBounty(params: any) {
@@ -54,10 +54,6 @@ export function awardCommentBounty(params: any) {
   return call(getFunctionUrl('awardcommentbounty'), 'POST', params)
 }
 
-export function withdrawLiquidity(params: any) {
-  return call(getFunctionUrl('withdrawliquidity'), 'POST', params)
-}
-
 export function createMarket(params: any) {
   return call(getFunctionUrl('createmarket'), 'POST', params)
 }