feat: React to LSM caps being reached (#632)

* lsm cap host chain params * tests * dep * update validator key * delegable flag * add lsm flag check * delegation strategy update * delegable flag typo * test updates * fix test * changelog * migration * handle bond factor default value * cosmos-sdk dep * comparison typo * Update proto/pstake/liquidstakeibc/v1beta1/liquidstakeibc.proto Co-authored-by: Puneet <59960662+puneet2019@users.noreply.github.com> * Update proto/pstake/liquidstakeibc/v1beta1/liquidstakeibc.proto Co-authored-by: Puneet <59960662+puneet2019@users.noreply.github.com> * Update proto/pstake/liquidstakeibc/v1beta1/liquidstakeibc.proto Co-authored-by: Puneet <59960662+puneet2019@users.noreply.github.com> * add explanation comment to delegation strategy * bond factor validation --------- Co-authored-by: Puneet <59960662+puneet2019@users.noreply.github.com>
persistenceOne · Sep 6, 2023 · ba52d5c · ba52d5c
1 parent ba890c7
commit ba52d5c
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diff --git a/CHANGELOG.md b/CHANGELOG.md
@@ -43,6 +43,7 @@ Ref: https://keepachangelog.com/en/1.0.0/
 
 ### Bug Fixes
 
+- [#632](https://github.com/persistenceOne/pstake-native/pull/632) LSM cap fix.
 - [#621](https://github.com/persistenceOne/pstake-native/pull/621) ICA recreation timeout fix.
 
 ### Removed

diff --git a/go.mod b/go.mod
@@ -25,7 +25,6 @@ require (
 	google.golang.org/genproto/googleapis/api v0.0.0-20230526203410-71b5a4ffd15e
 	google.golang.org/grpc v1.57.0
 	google.golang.org/protobuf v1.31.0
-	gopkg.in/yaml.v2 v2.4.0
 )
 
 require (
@@ -167,6 +166,7 @@ require (
 	google.golang.org/genproto v0.0.0-20230629202037-9506855d4529 // indirect
 	google.golang.org/genproto/googleapis/rpc v0.0.0-20230706204954-ccb25ca9f130 // indirect
 	gopkg.in/ini.v1 v1.67.0 // indirect
+	gopkg.in/yaml.v2 v2.4.0 // indirect
 	gopkg.in/yaml.v3 v3.0.1 // indirect
 	nhooyr.io/websocket v1.8.6 // indirect
 	pgregory.net/rapid v0.5.5 // indirect
@@ -182,6 +182,6 @@ replace (
 
 // use persistence's forks with LSM implemented
 replace (
-	github.com/cosmos/cosmos-sdk => github.com/persistenceOne/cosmos-sdk v0.47.3-lsm3
+	github.com/cosmos/cosmos-sdk => github.com/persistenceOne/cosmos-sdk v0.47.3-lsm4
 	github.com/cosmos/ibc-go/v7 => github.com/persistenceOne/ibc-go/v7 v7.2.0-lsm2
 )
diff --git a/go.sum b/go.sum
@@ -973,8 +973,8 @@ github.com/pelletier/go-toml v1.2.0/go.mod h1:5z9KED0ma1S8pY6P1sdut58dfprrGBbd/9
 github.com/pelletier/go-toml/v2 v2.0.8 h1:0ctb6s9mE31h0/lhu+J6OPmVeDxJn+kYnJc2jZR9tGQ=
 github.com/pelletier/go-toml/v2 v2.0.8/go.mod h1:vuYfssBdrU2XDZ9bYydBu6t+6a6PYNcZljzZR9VXg+4=
 github.com/performancecopilot/speed v3.0.0+incompatible/go.mod h1:/CLtqpZ5gBg1M9iaPbIdPPGyKcA8hKdoy6hAWba7Yac=
-github.com/persistenceOne/cosmos-sdk v0.47.3-lsm3 h1:lfX+OnKmmbJkijtIUu74C4BevzFXXjEGlxPLb6G6ngc=
-github.com/persistenceOne/cosmos-sdk v0.47.3-lsm3/go.mod h1:4oxikyyHyEe1wlYQFMGITfW/r01wYtfj8yjwru7bSWE=
+github.com/persistenceOne/cosmos-sdk v0.47.3-lsm4 h1:HyoRiPw30IOFdNyhrXFOrU20fR1UKgtv7PsTBeVpsMU=
+github.com/persistenceOne/cosmos-sdk v0.47.3-lsm4/go.mod h1:4oxikyyHyEe1wlYQFMGITfW/r01wYtfj8yjwru7bSWE=
 github.com/persistenceOne/ibc-go/v7 v7.2.0-lsm2 h1:dZdIkhaOKB0YbetYmlbQmSC6b8hSPYUzOeET9CIYUDY=
 github.com/persistenceOne/ibc-go/v7 v7.2.0-lsm2/go.mod h1:PzDs4fL8PNx7OoxTbNqjxANKKNGL/1ucVt+Np68hLi4=
 github.com/persistenceOne/persistence-sdk/v2 v2.1.1 h1:fo8Og2QkjsqqhH/wiEiOSB99M2Jr0kLqirU2xhJRZfQ=

diff --git a/proto/pstake/liquidstakeibc/v1beta1/liquidstakeibc.proto b/proto/pstake/liquidstakeibc/v1beta1/liquidstakeibc.proto
@@ -86,6 +86,20 @@ message HostChainLSParams {
     (gogoproto.customtype) = "github.com/cosmos/cosmos-sdk/types.Dec",
     (gogoproto.nullable) = false
   ]; // protocol fee in percentage
+  // LSM validator cap
+  //  Should be used only when HostChainFlag.Lsm == true, orelse default
+  string lsm_validator_cap = 6 [
+    (cosmos_proto.scalar) = "cosmos.Dec",
+    (gogoproto.customtype) = "github.com/cosmos/cosmos-sdk/types.Dec",
+    (gogoproto.nullable) = false
+  ];
+  // LSM bond factor
+  //  Should be used only when HostChainFlag.Lsm == true, orelse default
+  string lsm_bond_factor = 7 [
+    (cosmos_proto.scalar) = "cosmos.Dec",
+    (gogoproto.customtype) = "github.com/cosmos/cosmos-sdk/types.Dec",
+    (gogoproto.nullable) = false
+  ];
 }
 
 message ICAAccount {
@@ -133,6 +147,8 @@ message Validator {
   ];
   // the unbonding epoch number when the validator transitioned into the state
   int64 unbonding_epoch = 6;
+  // whether the validator can accept delegations or not, default true for non-lsm chains
+  bool delegable = 7;
 }
 
 message Deposit {

diff --git a/x/liquidstakeibc/genesis_test.go b/x/liquidstakeibc/genesis_test.go
@@ -21,10 +21,12 @@ func TestGenesis(t *testing.T) {
 			ChainId:      "chainA-1",
 			ConnectionId: "connection-1",
 			Params: &types.HostChainLSParams{
-				DepositFee:    sdk.ZeroDec(),
-				RestakeFee:    sdk.ZeroDec(),
-				UnstakeFee:    sdk.ZeroDec(),
-				RedemptionFee: sdk.ZeroDec(),
+				DepositFee:      sdk.ZeroDec(),
+				RestakeFee:      sdk.ZeroDec(),
+				UnstakeFee:      sdk.ZeroDec(),
+				RedemptionFee:   sdk.ZeroDec(),
+				LsmValidatorCap: sdk.NewDec(1),
+				LsmBondFactor:   sdk.NewDec(-1),
 			},
 			HostDenom: "uatom",
 			ChannelId: "channel-1",

diff --git a/x/liquidstakeibc/keeper/delegation_strategy.go b/x/liquidstakeibc/keeper/delegation_strategy.go
@@ -12,34 +12,60 @@ import (
 
 type DelegateAmount struct {
 	ValAddress string
-	ValWeight  sdk.Dec
 	Amount     sdk.Dec
 }
 
+// GenerateDelegateMessages produces the same result regardless the LSM flag on the host chain.
 func (k *Keeper) GenerateDelegateMessages(hc *types.HostChain, depositAmount math.Int) ([]proto.Message, error) {
-	return k.generateMessages(hc, depositAmount, false)
+	// filter out validators which are non-delegable (which reached any LSM cap)
+	delegableValidators := make([]*types.Validator, 0)
+	nonDelegableWeight := sdk.ZeroDec()
+	nonDelegableDelegations := sdk.ZeroInt()
+	for _, validator := range hc.Validators {
+		if validator.Delegable {
+			delegableValidators = append(delegableValidators, validator)
+		} else {
+			nonDelegableWeight = nonDelegableWeight.Add(validator.Weight)
+			nonDelegableDelegations = nonDelegableDelegations.Add(validator.DelegatedAmount)
+		}
+	}
+
+	// if there are no delegable validators, do nothing
+	if len(delegableValidators) == 0 {
+		return nil, errorsmod.Wrap(types.ErrInvalidMessages, "no delegable validators")
+	}
+
+	// the weight of the un-delegable validators is distributed evenly among the others
+	if nonDelegableWeight.GT(sdk.ZeroDec()) {
+		weightDelta := nonDelegableWeight.Quo(sdk.NewDec(int64(len(delegableValidators))))
+		for _, validator := range delegableValidators {
+			validator.Weight = validator.Weight.Add(weightDelta)
+		}
+	}
+
+	// subtract the delegations from non-delegable validators to get the effective total delegated amount
+	effectiveTotalDelegatedAmount := hc.GetHostChainTotalDelegations().Sub(nonDelegableDelegations)
+
+	return k.generateMessages(hc, delegableValidators, effectiveTotalDelegatedAmount, depositAmount, false)
 }
 
 func (k *Keeper) GenerateUndelegateMessages(hc *types.HostChain, unbondAmount math.Int) ([]proto.Message, error) {
-	return k.generateMessages(hc, unbondAmount, true)
+	return k.generateMessages(hc, hc.Validators, hc.GetHostChainTotalDelegations(), unbondAmount, true)
 }
 
 func (k *Keeper) generateMessages(
 	hc *types.HostChain,
+	validators []*types.Validator,
+	totalDelegatedAmount math.Int,
 	actionableAmount math.Int,
 	undelegating bool,
 ) ([]proto.Message, error) {
 	delegateAmounts := make([]DelegateAmount, 0)
-	for _, validator := range hc.Validators {
+	for _, validator := range validators {
 		// calculate the new total delegated amount for the host chain
-		currentDelegation := hc.GetHostChainTotalDelegations()
-		futureDelegation := currentDelegation.Add(actionableAmount)
+		futureDelegation := totalDelegatedAmount.Add(actionableAmount)
 		if undelegating {
-			futureDelegation = currentDelegation.Sub(actionableAmount)
-		}
-
-		if validator.Weight.Equal(sdk.ZeroDec()) {
-			continue // skip validators with zero weight
+			futureDelegation = totalDelegatedAmount.Sub(actionableAmount)
 		}
 
 		// calculate the delegated/undelegated amount difference for the validator:
@@ -56,13 +82,14 @@ func (k *Keeper) generateMessages(
 
 		delegateAmounts = append(delegateAmounts, DelegateAmount{
 			ValAddress: validator.OperatorAddress,
-			ValWeight:  validator.Weight,
 			Amount:     newDelegationDifference,
 		})
 	}
 
 	messages := make([]proto.Message, 0)
-	for _, delegationAmount := range delegateAmounts {
+	for i, delegationAmount := range delegateAmounts {
+		// create the basic structure of the delegate / undelegate message
+		// containing both the delegator and validator addresses
 		var message proto.Message
 		if !undelegating {
 			message = &stakingtypes.MsgDelegate{
@@ -76,8 +103,9 @@ func (k *Keeper) generateMessages(
 			}
 		}
 
-		// return when there is nothing more to delegate/undelegate
-		if actionableAmount.LTE(delegationAmount.Amount.TruncateInt()) {
+		// if what's left to delegate is less than what needs to be delegated OR we are in the last validator just delegate everything that is left
+		// this will also remove any remainder tokens that can be left because of precision issues
+		if actionableAmount.LTE(delegationAmount.Amount.TruncateInt()) || i == len(delegateAmounts)-1 {
 			if !undelegating {
 				msgDelegate := message.(*stakingtypes.MsgDelegate)
 				msgDelegate.Amount = sdk.NewCoin(hc.HostDenom, actionableAmount)