From bfa1cf17b94628fb52ea308b19202047d6632848 Mon Sep 17 00:00:00 2001
From: Oliver Gugger <gugger@gmail.com>
Date: Wed, 2 Feb 2022 14:24:52 +0100
Subject: [PATCH] lnwallet: introduce default routing fee calculation

---
 lnwallet/parameters.go      | 29 +++++++++++++++++++++++++++
 lnwallet/parameters_test.go | 39 +++++++++++++++++++++++++++++++++++++
 2 files changed, 68 insertions(+)

diff --git a/lnwallet/parameters.go b/lnwallet/parameters.go
index ccd5583d0..9e4b67422 100644
--- a/lnwallet/parameters.go
+++ b/lnwallet/parameters.go
@@ -5,8 +5,37 @@ import (
 	"github.com/btcsuite/btcd/wire"
 	"github.com/btcsuite/btcutil"
 	"github.com/lightningnetwork/lnd/input"
+	"github.com/lightningnetwork/lnd/lnwire"
 )
 
+const (
+	// RoutingFee100PercentUpTo is the cut-off amount we allow 100% fees to
+	// be charged up to.
+	RoutingFee100PercentUpTo lnwire.MilliSatoshi = 50_000
+
+	// DefaultRoutingFeePercentage is the default off-chain routing fee we
+	// allow to be charged for a payment over the RoutingFee100PercentUpTo
+	// size.
+	DefaultRoutingFeePercentage lnwire.MilliSatoshi = 5
+)
+
+// DefaultRoutingFeeLimitForAmount returns the default off-chain routing fee
+// limit lnd uses if the user does not specify a limit manually. The fee is
+// amount dependent because of the base routing fee that is set on many
+// channels. For example the default base fee is 1 satoshi. So sending a payment
+// of one satoshi will cost 1 satoshi in fees over most channels, which comes to
+// a fee of 100%. That's why for very small amounts we allow 100% fee.
+func DefaultRoutingFeeLimitForAmount(a lnwire.MilliSatoshi) lnwire.MilliSatoshi {
+	// Allow 100% fees up to a certain amount to accommodate for base fees.
+	if a <= RoutingFee100PercentUpTo {
+		return a
+	}
+
+	// Everything larger than the cut-off amount will get a default fee
+	// percentage.
+	return a * DefaultRoutingFeePercentage / 100
+}
+
 // DustLimitForSize retrieves the dust limit for a given pkscript size. Given
 // the size, it automatically determines whether the script is a witness script
 // or not. It calls btcd's GetDustThreshold method under the hood. It must be
diff --git a/lnwallet/parameters_test.go b/lnwallet/parameters_test.go
index 021cb7bc6..cde35c05e 100644
--- a/lnwallet/parameters_test.go
+++ b/lnwallet/parameters_test.go
@@ -1,13 +1,52 @@
 package lnwallet
 
 import (
+	"fmt"
 	"testing"
 
 	"github.com/btcsuite/btcutil"
 	"github.com/lightningnetwork/lnd/input"
+	"github.com/lightningnetwork/lnd/lnwire"
 	"github.com/stretchr/testify/require"
 )
 
+// TestDefaultRoutingFeeLimitForAmount tests that we use the correct default
+// routing fee depending on the amount.
+func TestDefaultRoutingFeeLimitForAmount(t *testing.T) {
+	t.Parallel()
+
+	tests := []struct {
+		amount        lnwire.MilliSatoshi
+		expectedLimit lnwire.MilliSatoshi
+	}{
+		{
+			amount:        1,
+			expectedLimit: 1,
+		},
+		{
+			amount:        50_000,
+			expectedLimit: 50_000,
+		},
+		{
+			amount:        50_001,
+			expectedLimit: 2_500,
+		},
+		{
+			amount:        5_000_000_000,
+			expectedLimit: 250_000_000,
+		},
+	}
+
+	for _, test := range tests {
+		test := test
+
+		t.Run(fmt.Sprintf("%d sats", test.amount), func(t *testing.T) {
+			feeLimit := DefaultRoutingFeeLimitForAmount(test.amount)
+			require.Equal(t, test.expectedLimit, feeLimit)
+		})
+	}
+}
+
 // TestDustLimitForSize tests that we receive the expected dust limits for
 // various script types from btcd's GetDustThreshold function.
 func TestDustLimitForSize(t *testing.T) {