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docs: ADR-071 Bank/v2 #20316

Merged
merged 10 commits into from
Jul 30, 2024
Merged

docs: ADR-071 Bank/v2 #20316

merged 10 commits into from
Jul 30, 2024

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samricotta
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@samricotta samricotta commented May 8, 2024

Description

The main objective of bank is to condense and streamline the role of the bank module. Currently it handles a multitude of jobs such as handle sends, handle account restrictions, handle delegation counting, minting and burning of coins, we want to streamline this.

Within the ADR we cover ways to achieve this with pros and cons.

We would like to add more implementation details in the next coming days and more importantly obtain feedback

Reference: #17579


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  • included the necessary unit and integration tests
  • added a changelog entry to CHANGELOG.md
  • updated the relevant documentation or specification, including comments for documenting Go code
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Summary by CodeRabbit

  • Documentation

    • Added a new architectural decision record (ADR-71 Bank V2) outlining the proposed enhancements and simplifications to the bank module.
  • New Features

    • Integration of the Token Factory to standardize token interactions within the bank module.
    • Introduction of the Denom interface to standardize various token operations like transfers and balance checks.
  • Refactor

    • Refocused the bank module on core functionalities such as Send, Mint, and Burn.
  • Chores

    • Implemented legacy support to maintain compatibility with existing functionalities.

Co-Authored-By: Julien Robert <29894366+julienrbrt@users.noreply.github.com>
@samricotta samricotta requested a review from a team as a code owner May 8, 2024 12:00
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Walkthrough

Walkthrough

The proposed changes in ADR-71 Bank V2 focus on refactoring the bank module within the Cosmos SDK to enhance functionality, simplify operations, and ensure better integration with the Token Factory. The addition of the Asset and Denom interfaces aims to standardize token interactions.

Changes

File Path Change Summary
docs/architecture/adr-071-bank-v2.md Introduction of ADR-71 Bank V2 proposing refactoring of the bank module to simplify and enhance its functionality.
.../exported.go Addition of Asset interface with methods for standardized token interactions; integration of Token Factory; focus on core functionalities like Send, Mint, and Burn.

Possibly related issues

  • [Epic]: Bank/v2 #17579: This issue's objectives to redesign the bank module for core functionalities and efficiency align with the goals of the ADR-71 Bank V2 refactoring.
  • ICS20 V2 Support for Multi Denom  ibc-go#5793: Although this issue focuses on IBC module enhancements, the standardization introduced in ADR-71 Bank V2 might indirectly support broader interoperability and integration efforts mentioned.

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Actionable comments posted: 6

Out of diff range and nitpick comments (3)
docs/architecture/adr-071-bank-v2.md (3)

13-13: Remove trailing space for cleaner formatting.


25-25: Remove trailing space for cleaner formatting.


92-92: Ensure the file ends with a single newline character.

Review Details

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Commits Files that changed from the base of the PR and between 5a5c638 and 03cf342.
Files selected for processing (1)
  • docs/architecture/adr-071-bank-v2.md (1 hunks)
Additional Context Used
LanguageTool (6)
docs/architecture/adr-071-bank-v2.md (6)

Near line 17: Possible missing comma found.
Context: ...duplicates functionalities (with 4 send functions for instance). Additionally, the integ...


Near line 21: Opting for a less wordy alternative here can improve the clarity of your writing.
Context: ...in the core modules. This rewrite will not only reduce the complexity but also improve the efficiency and UX of the bank modul...


Near line 33: A comma may be missing after the conjunctive/linking adverb ‘Currently’.
Context: ...and does not exceed its intended scope. Currently the permissions allow all denoms, so th...


Near line 61: Consider a shorter alternative to avoid wordiness.
Context: ...ng a v2 needs to be thought thoroughly. In order to not force all dependencies to immediate...


Near line 63: A comma may be missing after the conjunctive/linking adverb ‘Instead’.
Context: ...a new cosmossdk.io/bank/v2 go module. Instead the bank protos will be versioned from ...


Near line 81: The word “fallback” is a noun. The verb is spelled with a space.
Context: ...in (IBC-ed custom asset should possibly fallback to the default implementation) * Many a...

Path-based Instructions (1)
docs/architecture/adr-071-bank-v2.md (1)

Pattern **/*.md: "Assess the documentation for misspellings, grammatical errors, missing documentation and correctness"

docs/architecture/adr-071-bank-v2.md Outdated Show resolved Hide resolved

In addition to the above, the bank module is currently too rigid and handles too many tasks, so this proposal aims to streamline the module by focusing on core functions `Send`, `Mint`, and `Burn`.

Currently, the module is split accross different keepers with scattered and duplicates functionalities (with 4 send functions for instance).
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Consider adding a comma after "Additionally" for better readability.

- Additionally the integration of the token factory into the bank module allows for standardization, and better integration within the core modules.
+ Additionally, the integration of the token factory into the bank module allows for standardization, and better integration within the core modules.

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‼️ IMPORTANT
Carefully review the code before committing. Ensure that it accurately replaces the highlighted code, contains no missing lines, and has no issues with indentation.

Suggested change
Currently, the module is split accross different keepers with scattered and duplicates functionalities (with 4 send functions for instance).
Currently, the module is split accross different keepers with scattered and duplicates functionalities (with 4 send functions for instance).

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julienrbrt and others added 2 commits May 8, 2024 14:51
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One negative is that this means that different asset implementations could have different state layouts and that it may be hard to query all the balances of a given account for all demons, especially considering what's being proposed for state indexing.

Instead why not simply have callbacks for OnMint, OnBurn and OnTransfer that allow for custom validation and even side effects, but keep all the state management in x/bank? Why would any denom implementation need to actually have a different state layout for balance or supply? Wouldn't it mostly be around allowing or disallowing the operation?

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aaronc commented Jun 3, 2024

Also, a few more open questions about the proposed design occur to me. What actually are these Asset implementations? Are they modules with their own state? How are events standardized or are they not? IMHO standard events and standard state is ideal for users as long as customization can be provided.

I want to propose an alternate design where bank exposes three admin operations: Mint, Burn and Move. Let's assume these are messages that can be invoked by inter-module calls - basically internal inter-module calls, but not exposed to clients. For every denom, there can be an admin address which is able to invoke these operations. Mint and Burn let the admin mint/burn any coins of the denom for any address. Move lets the admin move any coins from one address to another address. And if the admin address is an x/account which implements an OnSend message handler, then any time the send operation is invoked the admin account will be notified and can implement custom validation or send effects. This system will allow for:

  • custom implementations of mint, burn and send for any denom
  • customizable behavior for the built-in send operation
  • standards state layout and events for all denoms

To me this design covers all the cases I can think of without any of the downsides related to inconsistent state and events. It also defines a clear way to use the x/accounts model to define custom ERC-20 like tokens.

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@testinginprod might be good to get your thoughts on Aarons comment above as the denom/asset interface was your suggestion

}
```

If admin account defines these callbacks, `x/bank` will call `x/accounts` `MsgExecute` with the `OnTransfer`, `GetBalance` or `GetSupply` callbacks:
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call back on queries would need to also be in the indexing layer right?

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Not sure quite what you mean. The indexing layer wouldn't index any balances or supplies that aren't managed by x/bank. For those we would need to figure out some indexing solution for the x/accounts implementations.


Bank is a widely used module, so getting a v2 needs to be thought thoroughly. In order to not force all dependencies to immediately migrate to bank/v2, the same _upgrading_ path will be taken as for the `gov` module.

This means `cosmossdk.io/bank` will stay one module and there won't be a new `cosmossdk.io/bank/v2` go module. Instead the bank protos will be versioned from `v1beta1` (current bank) to `v2`.
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i dont think we should do this since we dont want to support all the queries there right now? should we assume we have an offchain indexer in this sense and make sure we dont store extra data for queries?

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albertchon commented Jul 1, 2024

For visibility, here's my feedback from our call today @samricotta

Send restrictions functionality will be maintained

The changes to send restrictions should be documented, particularly if they'll be applied globally in conjunction with the new hook, on a per-denom basis within the new hooks functionality, or on a per-denom basis in conjunction with the new hooks. Also note that if send restrictions are to be replaced by transfer hooks, this would be considered a breaking change (though acceptable imo given their relatively limited adoption)

  • The OnBalanceOf hook invocation procedure should be made more clear, if it's even to be a hook at all, as it seems to be more of a custom query function more than a hook. Consider also the implications beyond balances (e.g. Supply).

  • Hook APIs should be defined and greater treatment should be given to their usage/interactions within the existing bank implementation which handles Coins.

  • Explicitly note that existing bank events will be preserved

  • Consider applying the Checks-Effects-Interactions pattern as much as possible, particularly in cases where multiple coins are sent. E.g. perform all validations first (e.g. balance checks, hooks/permissions checks) before stateful updates.

  • At some point, consider speccing out tokenfactory instead of just referencing the Osmosis implementation. Some minor details surrounding denom creation fees and including the ability to force transfer (or not) seem relevant to decide.

  • Regarding rebasing tokens or more broadly for tokens with custom hooks, we should ensure that existing SDK logic will not break invariants or panic in "consensus code" (i.e. Begin/Endblocker) with the introduction of dynamic supply tokens or tokens with correctly implemented custom hooks. (e.g. some areas to ensure safe implementation for include transferring collected fees in the distribution module, refunding gov deposits, slashing, etc)

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SpicyLemon commented Jul 9, 2024

For visibility, here's my feedback from our call today @samricotta

Send restrictions functionality will be maintained

The changes to send restrictions should be documented, particularly if they'll be applied globally in conjunction with the new hook, on a per-denom basis within the new hooks functionality, or on a per-denom basis in conjunction with the new hooks. Also note that if send restrictions are to be replaced by transfer hooks, this would be considered a breaking change (though acceptable imo given their relatively limited adoption)

One of my main concerns with this rewrite is that send restrictions will be ruined. They MUST continue to be applied globally. They should be consulted any time funds are being moved.

We've got three modules that use send restrictions:

  1. x/sanction: Prevents any and all funds from being moved out of specific accounts.
  2. x/quarantine: If funds are sent to certain accounts, the funds are instead sent to a module account until the intended recipient accepts them.
  3. x/marker: Prevents movement of some funds based on denom and permissions. This is denom based, though, so maybe the account-related stuff can be used instead, but we still want all record-keeping to happen in a central ledger. I say that because it sounds like the per-denom "solution" is to have something else keep track of balances.

On a separate note, One of the things we currently like about the bank module is that it records everything all in one place. So we can ask for an account's balances, and get everything belonging to them, regardless of the denom.

We also have an x/hold module that injects a LockedCoinsFn (a customization we added to our SDK fork). But it only works if there's a central ledger being consulted for all fund movement.

I'm also concerned that there won't be a way for a module to facilitate movement of funds. Specifically, if the "from" has to be determined by the signer of a message, it seems like it'll be impossible for anything to move funds except through a MsgSend signed by the user. In a lot of our use cases, they signed a previous message that explicitly gives some other actor the ability to move specific funds out of their account.

@testinginprod testinginprod self-requested a review July 29, 2024 09:43
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LGTM, we had enough discussion and the stakeholders seemed to be happy with the design.

@samricotta samricotta enabled auto-merge July 30, 2024 10:32
@samricotta samricotta added this pull request to the merge queue Jul 30, 2024
Merged via the queue into main with commit 8e0bf86 Jul 30, 2024
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@samricotta samricotta deleted the sam/bank-v2-adr branch July 30, 2024 10:39
@julienrbrt julienrbrt mentioned this pull request Sep 12, 2024
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7 participants