From b1aa67251e60ca2c7b2f9f512fe4dbf273789fbb Mon Sep 17 00:00:00 2001
From: Jakub <jakub.nowakowski@thesis.co>
Date: Tue, 26 Nov 2024 21:58:29 +0100
Subject: [PATCH] Update estimated time for processing of small deposits from 1
 hour to 2 hours

Deposit duration for small deposits was increased from 1 hour to 2 hours.
This change was made to reflect the actual time it takes for small deposits
to be processed. We observed that small deposits are taking in general 1.5 hours
to finalize, so we decided to round up for better user experience.
---
 dapp/src/utils/activities.ts            | 29 +++++++++++---
 dapp/src/utils/tests/activities.test.ts | 52 +++++++++++++++++++++++++
 2 files changed, 76 insertions(+), 5 deletions(-)
 create mode 100644 dapp/src/utils/tests/activities.test.ts

diff --git a/dapp/src/utils/activities.ts b/dapp/src/utils/activities.ts
index 7349a985b..a6d1716da 100644
--- a/dapp/src/utils/activities.ts
+++ b/dapp/src/utils/activities.ts
@@ -21,12 +21,31 @@ export function getEstimatedDuration(
   amount: bigint,
   type: ActivityType,
 ): string {
+  // Withdrawal duration is related to the tBTC redemption process, which takes
+  // approximately 5 - 7 hours. We use the average value of 6 hours.
   if (isWithdrawType(type)) return "6 hours"
 
-  if (amount < MIN_LIMIT_VALUE_DURATION) return "1 hour"
-
-  if (amount >= MIN_LIMIT_VALUE_DURATION && amount < MAX_LIMIT_VALUE_DURATION)
-    return "2 hours"
-
+  // Deposit duration is related to the tBTC minting process, which varies based
+  // on the amount of BTC deposited.
+  // Each threshold requires a different number of Bitcoin transaction confirmations:
+  // <0.1 BTC: 1 Bitcoin block confirmation (~10 minutes),
+  // >=0.1 BTC and <1 BTC: 3 Bitcoin block confirmations (~30 minutes),
+  // >=1 BTC: 6 Bitcoin block confirmations (~60 minutes).
+  // The duration of the transaction minting process depends on the Bitcoin network
+  // congestion, and the fee paid by the user.
+  //
+  // After the required number of Bitcoin block confirmations, the tBTC optimistic
+  // minting process starts. The optimistic minting process takes approximately
+  // 1 hour to complete.
+  // After optimistic minting is completed, the Acre bots will finalize the deposit
+  // in no more than 10 minutes.
+  //
+  // We round the estimated duration up to the nearest hour.
+  //
+  // For <0.1 BTC estimated duration is around 1 hour 20 minutes.
+  if (amount < MIN_LIMIT_VALUE_DURATION) return "2 hours"
+  // For <1 BTC estimated duration is around 1 hours 40 minutes.
+  if (amount < MAX_LIMIT_VALUE_DURATION) return "2 hours"
+  // For >=1 BTC estimated duration is around 2 hours 10 minutes.
   return "3 hours"
 }
diff --git a/dapp/src/utils/tests/activities.test.ts b/dapp/src/utils/tests/activities.test.ts
new file mode 100644
index 000000000..fcafa84a7
--- /dev/null
+++ b/dapp/src/utils/tests/activities.test.ts
@@ -0,0 +1,52 @@
+import { describe, expect, it } from "vitest"
+import { getEstimatedDuration } from "../activities"
+
+describe("Utils functions for activities", () => {
+  describe("getEstimatedDuration", () => {
+    describe("withdraw", () => {
+      describe.each([
+        // 0.01 BTC
+        { value: 0.01, expectedResult: "6 hours" },
+        // 0.1 BTC
+        { value: 0.1, expectedResult: "6 hours" },
+        // 1 BTC
+        { value: 1, expectedResult: "6 hours" },
+        // 10 BTC
+        { value: 10, expectedResult: "6 hours" },
+      ])("when it is $value BTC", ({ value, expectedResult }) => {
+        it(`should return ${expectedResult}`, () => {
+          expect(getEstimatedDuration(BigInt(value * 1e8), "withdraw")).toEqual(
+            expectedResult,
+          )
+        })
+      })
+    })
+
+    describe("deposit", () => {
+      describe.each([
+        // 0.0001 BTC
+        { value: 0.0001, expectedResult: "2 hours" },
+        // 0.001 BTC
+        { value: 0.001, expectedResult: "2 hours" },
+        // 0.01 BTC
+        { value: 0.01, expectedResult: "2 hours" },
+        // 0.09 BTC
+        { value: 0.09, expectedResult: "2 hours" },
+        // 0.1 BTC
+        { value: 0.1, expectedResult: "2 hours" },
+        // 0.9 BTC
+        { value: 0.9, expectedResult: "2 hours" },
+        // 1 BTC
+        { value: 1, expectedResult: "3 hours" },
+        // 10 BTC
+        { value: 10, expectedResult: "3 hours" },
+      ])("when it is $value BTC", ({ value, expectedResult }) => {
+        it(`should return ${expectedResult}`, () => {
+          expect(getEstimatedDuration(BigInt(value * 1e8), "deposit")).toEqual(
+            expectedResult,
+          )
+        })
+      })
+    })
+  })
+})