program: can-lower-k-improvement (#1338)

* program: can-lower-k-improvement * check min_order_size_u128 * CHANGELOG --------- Co-authored-by: Chris Heaney <[email protected]>
drift-labs · Nov 21, 2024 · 7b1d901 · 7b1d901
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diff --git a/CHANGELOG.md b/CHANGELOG.md
@@ -14,6 +14,7 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 ### Fixes
 
+- program: can update k looks at min order size ([#1338](https://github.com/drift-labs/protocol-v2/pull/1338))
 - program: skip validate_post_only_order if amm paused ([#1202](https://github.com/drift-labs/protocol-v2/pull/1202))
 
 ### Breaking

diff --git a/programs/drift/src/state/perp_market.rs b/programs/drift/src/state/perp_market.rs
@@ -1398,10 +1398,17 @@ impl AMM {
 
     pub fn can_lower_k(&self) -> DriftResult<bool> {
         let (max_bids, max_asks) = amm::calculate_market_open_bids_asks(self)?;
-        let can_lower = self.base_asset_amount_with_amm.unsigned_abs()
-            < max_bids.unsigned_abs().min(max_asks.unsigned_abs())
-            && self.base_asset_amount_with_amm.unsigned_abs()
-                < self.sqrt_k.safe_sub(self.user_lp_shares)?;
+        let min_order_size_u128 = self.min_order_size.cast::<u128>()?;
+
+        let can_lower = (self.base_asset_amount_with_amm.unsigned_abs()
+            < max_bids.unsigned_abs().min(max_asks.unsigned_abs()))
+            && (self
+                .base_asset_amount_with_amm
+                .unsigned_abs()
+                .max(min_order_size_u128)
+                < self.sqrt_k.safe_sub(self.user_lp_shares)?)
+            && (min_order_size_u128 < max_bids.unsigned_abs().max(max_asks.unsigned_abs()));
+
         Ok(can_lower)
     }