contract ArthIncentiveController is IIncentiveController, Setters, Epoch {
    /**
     * Constructor.
     */
    constructor(
        address _pairAddress,
        address _protocolTokenAddress,
        address _ecosystemFund,
        address _incentiveToken,
        uint256 _rewardPerEpoch,
        uint256 _arthToMahaRate,
        uint256 _period
    )
        public
        Epoch(
            _period, /* 12 hour epochs */
            block.timestamp,
            0
        )
    {
        pairAddress = _pairAddress;
        ecosystemFund = _ecosystemFund;
        protocolTokenAddress = _protocolTokenAddress;
        incentiveToken = IBurnableERC20(_incentiveToken);
        isTokenAProtocolToken = IMahaswapV1Pair(_pairAddress).token0() == _protocolTokenAddress;
        rewardPerEpoch = _rewardPerEpoch;
        arthToMahaRate = _arthToMahaRate;

        availableRewardThisEpoch = rewardPerEpoch;
        rewardsThisEpoch = rewardPerEpoch;
    }

    function estimatePenaltyToCharge(
        uint256 endingPrice,
        uint256 liquidity,
        uint256 sellVolume
    ) public view returns (uint256) {
        uint256 targetPrice = getPenaltyPrice();

        // % of pool = sellVolume / liquidity
        // % of deviation from target price = (tgt_price - price) / price
        // amountToburn = sellVolume * % of deviation from target price * % of pool * 100
        if (endingPrice >= targetPrice) return 0;

        uint256 percentOfPool = sellVolume.mul(100000000).div(liquidity);
        uint256 deviationFromTarget = targetPrice.sub(endingPrice).mul(100000000).div(targetPrice);

        // A number from 0-100%.
        uint256 feeToCharge = Math.max(percentOfPool, deviationFromTarget);

        // NOTE: Shouldn't this be multiplied by 10000 instead of 100
        // NOTE: multiplication by 100, is removed in the mock controller
        // Can 2x, 3x, ... the penalty.
        return sellVolume.mul(feeToCharge).mul(arthToMahaRate).mul(penaltyMultiplier).div(100000000 * 100000 * 1e18);
    }

    function estimateRewardToGive(
        uint256 startingPrice,
        uint256 liquidity,
        uint256 buyVolume
    ) public view returns (uint256) {
        uint256 targetPrice = getRewardIncentivePrice();

        // % of pool = buyVolume / liquidity
        // % of deviation from target price = (tgt_price - price) / price
        // rewardToGive = buyVolume * % of deviation from target price * % of pool * 100
        if (startingPrice >= targetPrice) return 0;

        uint256 percentOfPool = buyVolume.mul(100000000).div(liquidity);
        uint256 deviationFromTarget = targetPrice.sub(startingPrice).mul(100000000).div(targetPrice);

        // A number from 0-100%.
        uint256 rewardToGive = percentOfPool.mul(deviationFromTarget).div(100000000);

        uint256 _rewardsThisEpoch = _getUpdatedRewardsPerEpoch();

        uint256 calculatedRewards =
            _rewardsThisEpoch.mul(rewardToGive).mul(rewardMultiplier).mul(arthToMahaRate).div(
                100000000 * 100000 * 1e18
            );

        uint256 availableRewards = Math.min(incentiveToken.balanceOf(address(this)), availableRewardThisEpoch);

        return Math.min(availableRewards, calculatedRewards);
    }

    function _penalizeTrade(
        uint256 endingPrice,
        uint256 sellVolume,
        uint256 liquidity,
        address to
    ) private {
        uint256 amountToPenalize = estimatePenaltyToCharge(endingPrice, liquidity, sellVolume);

        if (amountToPenalize > 0) {
            // NOTE: amount has to be approved from frontend.
            // take maha from owner
            incentiveToken.transferFrom(to, address(this), amountToPenalize);

            // Burn and charge a fraction of the penalty.
            incentiveToken.burn(amountToPenalize.mul(penaltyToBurn).div(100));

            // Keep a fraction of the penalty as funds for paying out rewards.
            uint256 amountToKeep = amountToPenalize.mul(penaltyToKeep).div(100);

            // Increase the variable to reflect this transfer.
            rewardCollectedFromPenalties = rewardCollectedFromPenalties.add(amountToKeep);

            // Send a fraction of the penalty to fund the ecosystem.
            incentiveToken.transfer(ecosystemFund, amountToPenalize.mul(penaltyToRedirect).div(100));
        }
    }

    function _incentiviseTrade(
        uint256 startingPrice,
        uint256 buyVolume,
        uint256 liquidity,
        address to
    ) private {
        // Calculate the amount as per volumne and rate.
        uint256 amountToReward = estimateRewardToGive(startingPrice, liquidity, buyVolume);

        if (amountToReward > 0) {
            availableRewardThisEpoch = availableRewardThisEpoch.sub(amountToReward);

            // Send reward to the appropriate address.
            incentiveToken.transfer(to, amountToReward);
        }
    }

    /**
     * This is the function that burns the MAHA and returns how much ARTH should
     * actually be spent.
     *
     * Note we are always selling tokenA.
     */
    function conductChecks(
        uint112 reserveA,
        uint112 reserveB,
        uint256 priceALast,
        uint256 priceBLast,
        uint256 amountOutA,
        uint256 amountOutB,
        uint256 amountInA,
        uint256 amountInB,
        address from,
        address to
    ) external onlyPair {
        // calculate price after the trade has been made
        uint256 reserveAFinal = uint256(reserveA) + amountInA - amountOutA;
        uint256 reserveBFinal = uint256(reserveB) + amountInB - amountOutB;

        uint256 startingPriceA = uint256(reserveB).mul(1e18).div(uint256(reserveA));
        uint256 endingPriceA = uint256(reserveBFinal).mul(1e18).div(uint256(reserveAFinal));

        if (isTokenAProtocolToken) {
            // then A is ARTH
            _conductChecks(reserveA, startingPriceA, endingPriceA, amountOutA, amountInA, to);
            return;
        } else {
            // then B is ARTH
            uint256 startingPriceB = uint256(1e18).div(startingPriceA);
            uint256 endingPriceB = uint256(1e18).div(endingPriceA);
            _conductChecks(reserveB, startingPriceB, endingPriceB, amountOutB, amountInB, to);
            return;
        }
    }

    function _conductChecks(
        uint112 reserveA, // ARTH liquidity
        uint256 startingPriceA, // ARTH price
        uint256 endingPriceA, // ARTH price
        uint256 amountOutA, // ARTH being bought
        uint256 amountInA, // ARTH being sold
        address to
    ) private {
        // capture volume and snapshot it every epoch.
        if (getCurrentEpoch() >= getNextEpoch()) _updateForEpoch();

        // Check if we are selling and if we are blow the target price?
        if (amountInA > 0) {
            // Check if we are below the targetPrice.
            uint256 penaltyTargetPrice = getPenaltyPrice();

            if (endingPriceA < penaltyTargetPrice) {
                // is the user expecting some DAI? if so then this is a sell order
                // Calculate the amount of tokens sent.
                _penalizeTrade(endingPriceA, amountInA, reserveA, to);

                // stop here to save gas
                return;
            }
        }

        // Check if we are buying and below the target price
        if (amountOutA > 0 && startingPriceA < getRewardIncentivePrice() && availableRewardThisEpoch > 0) {
            // is the user expecting some ARTH? if so then this is a sell order
            // If we are buying the main protocol token, then we incentivize the tx sender.
            _incentiviseTrade(startingPriceA, amountOutA, reserveA, to);
        }
    }

    function _updateForEpoch() private {
        // Consider the reward pending from previous epoch and
        // rewards capacity that was increased from penalizing people (AIP9 2nd point).
        availableRewardThisEpoch = rewardPerEpoch.add(rewardCollectedFromPenalties);
        rewardsThisEpoch = rewardPerEpoch.add(rewardCollectedFromPenalties);
        rewardCollectedFromPenalties = 0;

        lastExecutedAt = block.timestamp;
    }

    function _getUpdatedRewardsPerEpoch() private view returns (uint256) {
        if (getCurrentEpoch() >= getNextEpoch()) {
            return Math.max(rewardsThisEpoch, rewardPerEpoch.add(rewardCollectedFromPenalties));
        }

        return rewardsThisEpoch;
    }

    function refundIncentiveToken() external onlyOwner {
        incentiveToken.transfer(msg.sender, incentiveToken.balanceOf(address(this)));
    }
}
/**
 * NOTE: Contract MahaswapV1Pair should be the owner of this controller.
 */
function conductChecks(
        uint112 reserveA,
        uint112 reserveB,
        uint256 priceALast,
        uint256 priceBLast,
        uint256 amountOutA,
        uint256 amountOutB,
        uint256 amountInA,
        uint256 amountInB,
        address from,
        address to
    ) external onlyPair {
        // calculate price after the trade has been made
        uint256 reserveAFinal = uint256(reserveA) + amountInA - amountOutA;
        uint256 reserveBFinal = uint256(reserveB) + amountInB - amountOutB;

        uint256 startingPriceA = uint256(reserveB).mul(1e18).div(uint256(reserveA));
        uint256 endingPriceA = uint256(reserveBFinal).mul(1e18).div(uint256(reserveAFinal));

        if (isTokenAProtocolToken) {
            // then A is ARTH
            _conductChecks(reserveA, startingPriceA, endingPriceA, amountOutA, amountInA, to);
            return;
        } else {
            // then B is ARTH
            uint256 startingPriceB = uint256(1e18).div(startingPriceA);
            uint256 endingPriceB = uint256(1e18).div(endingPriceA);
            _conductChecks(reserveB, startingPriceB, endingPriceB, amountOutB, amountInB, to);
            return;
        }
    }
/**
 * This is the function that burns the MAHA and returns how much ARTH should
 * actually be spent.
 *
 * Note we are always selling tokenA.
 */