feat: change sigma values for rootFinder tests

robertleifke · Oct 25, 2024 · f7bc1cb · f7bc1cb
1 parent efc28f8
commit f7bc1cb
Showing 1 changed file with 10 additions and 11 deletions.
diff --git a/test/rootFinder.t.sol b/test/rootFinder.t.sol
@@ -12,14 +12,13 @@ contract RootFinderTest is Test {
         rootFinder = new RootFinder();
     }
 
-    // Test findRootNewX to ensure it converges on the expected result
-    // for a given set of input parameters
+    // Test findRootNewX to ensure it converges
     function testFindRootNewX() public {
         // Define inputs for findRootNewX
         uint256 reserveY_ = 1000 ether;
         uint256 liquidity = 5000 ether;
         uint256 strike_ = 1500 ether;
-        uint256 sigma_ = 1e18; // 100% volatility
+        uint256 sigma_ = 8e17; // 80% volatility
         uint256 tau_ = 365 days; // 1-year duration
 
         bytes memory args = abi.encode(reserveY_, liquidity, strike_, sigma_, tau_);
@@ -32,7 +31,7 @@ contract RootFinderTest is Test {
         assertApproxEqAbs(result, expectedValue, 1 ether, "Root did not converge to expected value within tolerance");
     }
 
-    // Test computeTfDReserveX to verify the accuracy of the derivative computation
+    // Test computeTfDReserveX to ensure accuracy of f'(L)
     function testComputeTfDReserveX() public {
         // Define inputs for derivative computation
         uint256 reserveY_ = 1000 ether;
@@ -53,8 +52,8 @@ contract RootFinderTest is Test {
     // Test findX function to ensure it returns the expected value for given inputs
     function testFindX() public {
         // Test data for findX
-        uint256 reserveY_ = 1000 ether;
-        uint256 liquidity = 5000 ether;
+        uint256 reserveY_ = 10 ether;
+        uint256 liquidity = 500 ether;
         uint256 strike_ = 1500 ether;
         uint256 sigma_ = 1e18; // 100% volatility
         uint256 tau_ = 365 days; // 1-year duration
@@ -70,11 +69,11 @@ contract RootFinderTest is Test {
 
     // Test computeTradingFunction with known parameters to verify correct calculation
     function testComputeTradingFunction() public {
-        uint256 reserveX_ = 2000 ether;
-        uint256 reserveY_ = 3000 ether;
+        uint256 reserveX_ = 200 ether;
+        uint256 reserveY_ = 10 ether;
         uint256 liquidity = 10000 ether;
         uint256 strike_ = 1500 ether;
-        uint256 sigma_ = 1e18; // 100% volatility
+        uint256 sigma_ = 8e17; // 80% volatility
         uint256 tau_ = 365 days; // 1-year duration
 
         int256 result = rootFinder.computeTradingFunction(reserveX_, reserveY_, liquidity, strike_, sigma_, tau_);
@@ -85,12 +84,12 @@ contract RootFinderTest is Test {
 
     // Test computeSigmaSqrtTau to ensure correct calculation of sigma * sqrt(tau)
     function testComputeSigmaSqrtTau() public {
-        uint256 sigma_ = 1e18; // 100% volatility
+        uint256 sigma_ = 8e17; // 80% volatility
         uint256 tau_ = 365 days; // 1-year duration
 
         uint256 result = rootFinder.computeSigmaSqrtTau(sigma_, tau_);
 
-        uint256 expectedValue = 1e18; // TODO: Replace with actual expected sigma * sqrt(tau) result
+        uint256 expectedValue = 1157e14; // TODO: Replace with actual expected sigma * sqrt(tau) result
         assertApproxEqAbs(result, expectedValue, 1e16, "computeSigmaSqrtTau result does not match expected value");
     }