Demo

Changelog

2021.09.27: initial document
2021.10.15: update farming, budget version
2021.11.12: update farming, budget version to v1.0.0-rc1
2021.11.26: update farming, budget version to v1.0.0

What does budget module do?

The budget module is a Cosmos SDK module that implements budget functionality. It is an independent module from other SDK modules and core functionality is to enable anyone to create a budget plan through governance param change proposal. After it is agreed within the community, voted, and passed, it uses the budget source address to distribute amount of coins by the rate that is defined in the plan to the destination address. Collecting all budgets and distribution take place every epoch blocks that can be modified by a governance proposal.

One use case is the Gravity DEX farming plan. The budget module can be used to create a budget plan that defines the Cosmos Hub FeeCollector module account where transaction gas fees and part of ATOM inflation are collected as budget source address and uses a custom module account (created by budget creator) as the collection address.

What does the farming module do?

The farming module is a Cosmos SDK-based module that implements farming functionality that provides farming rewards to staking participants called farmers.

One use case is to use the module to provide incentives for liquidity pool investors for their pool participation.

Resources

Budget module

tendermint/budget GitHub repo
x/budget spec docs
Audit-ready demo version
Other useful resources are available in the budget docs folder
Swagger Cosmos SDK Budget Module REST and gRPC Gateway docs v1.0.0

Farming module

tendermint/farming GitHub repo
x/farming spec docs
Audit-ready demo version
Other useful resources are available in the farming docs folder
Swagger Cosmos SDK Budget Module REST and gRPC Gateway docs v1.0.0

Demo

Step 1. Build from source

# Clone the demo project and build `farmingd` for testing
git clone -b v1.0.0 https://github.com/tendermint/farming.git
cd farming
make install-testing

Step 2. Spin up a local node

Provide 4 different types of pool coins to user2 in genesis
Increase inflation rate from default to 33% for better testing environment
Modify governance parameters to lower threshold and decrease time to reduce governance process

export BINARY=farmingd
export HOME_FARMINGAPP=$HOME/.farmingapp
export CHAIN_ID=localnet
export VALIDATOR_1="struggle panic room apology luggage game screen wing want lazy famous eight robot picture wrap act uphold grab away proud music danger naive opinion"
export USER_1="guard cream sadness conduct invite crumble clock pudding hole grit liar hotel maid produce squeeze return argue turtle know drive eight casino maze host"
export USER_2="fuel obscure melt april direct second usual hair leave hobby beef bacon solid drum used law mercy worry fat super must ritual bring faculty"
export VALIDATOR_1_GENESIS_COINS=100000000000000000stake,10000000000uatom,10000000000uusd
export USER_1_GENESIS_COINS=10000000000stake,10000000000uatom,10000000000uusd
export USER_2_GENESIS_COINS=10000000000stake,10000000000poolD35A0CC16EE598F90B044CE296A405BA9C381E38837599D96F2F70C2F02A23A4,10000000000pool93E069B333B5ECEBFE24C6E1437E814003248E0DD7FF8B9F82119F4587449BA5,10000000000pool3036F43CB8131A1A63D2B3D3B11E9CF6FA2A2B6FEC17D5AD283C25C939614A8C,10000000000poolE4D2617BFE03E1146F6BBA1D9893F2B3D77BA29E7ED532BB721A39FF1ECC1B07

# Bootstrap
$BINARY init $CHAIN_ID --chain-id $CHAIN_ID
echo $VALIDATOR_1 | $BINARY keys add val1 --keyring-backend test --recover
echo $USER_1 | $BINARY keys add user1 --keyring-backend test --recover
echo $USER_2 | $BINARY keys add user2 --keyring-backend test --recover
$BINARY add-genesis-account $($BINARY keys show val1 --keyring-backend test -a) $VALIDATOR_1_GENESIS_COINS
$BINARY add-genesis-account $($BINARY keys show user1 --keyring-backend test -a) $USER_1_GENESIS_COINS
$BINARY add-genesis-account $($BINARY keys show user2 --keyring-backend test -a) $USER_2_GENESIS_COINS
$BINARY gentx val1 50000000000000000stake --chain-id $CHAIN_ID --keyring-backend test
$BINARY collect-gentxs

# Check platform
platform='unknown'
unamestr=`uname`
if [ "$unamestr" = 'Linux' ]; then
   platform='linux'
fi

# Enable API and swagger docs and modify parameters for the governance proposal and
# inflation rate from 13% to 33%
if [ $platform = 'linux' ]; then
	sed -i 's/enable = false/enable = true/g' $HOME_FARMINGAPP/config/app.toml
	sed -i 's/swagger = false/swagger = true/g' $HOME_FARMINGAPP/config/app.toml
	sed -i 's%"amount": "10000000"%"amount": "1"%g' $HOME_FARMINGAPP/config/genesis.json
	sed -i 's%"quorum": "0.334000000000000000",%"quorum": "0.000000000000000001",%g' $HOME_FARMINGAPP/config/genesis.json
	sed -i 's%"threshold": "0.500000000000000000",%"threshold": "0.000000000000000001",%g' $HOME_FARMINGAPP/config/genesis.json
	sed -i 's%"voting_period": "172800s"%"voting_period": "30s"%g' $HOME_FARMINGAPP/config/genesis.json
  sed -i 's%"inflation": "0.130000000000000000",%"inflation": "0.330000000000000000",%g' $HOME_FARMINGAPP/config/genesis.json
else
	sed -i '' 's/enable = false/enable = true/g' $HOME_FARMINGAPP/config/app.toml
	sed -i '' 's/swagger = false/swagger = true/g' $HOME_FARMINGAPP/config/app.toml
	sed -i '' 's%"amount": "10000000"%"amount": "1"%g' $HOME_FARMINGAPP/config/genesis.json
	sed -i '' 's%"quorum": "0.334000000000000000",%"quorum": "0.000000000000000001",%g' $HOME_FARMINGAPP/config/genesis.json
	sed -i '' 's%"threshold": "0.500000000000000000",%"threshold": "0.000000000000000001",%g' $HOME_FARMINGAPP/config/genesis.json
	sed -i '' 's%"voting_period": "172800s"%"voting_period": "30s"%g' $HOME_FARMINGAPP/config/genesis.json
  sed -i '' 's%"inflation": "0.130000000000000000",%"inflation": "0.330000000000000000",%g' $HOME_FARMINGAPP/config/genesis.json
fi

# Start
$BINARY start

Step 3. Send a governance proposal to create a budget plan

Create the budget-proposal.json file and copy the following JSON contents into the file. Depending on what budget plan you create, you can customize values of the fields.

In this demo, you create a budget plan that distributes partial amount of coins from the FeeCollector module account that collects gas fees and ATOM inflation in Cosmos Hub. This budget plan will be used for Gravity DEX farming plan to GravityDEXFarmingBudget account.

The GravityDEXFarmingBudget account is derived using the following query.

$BINARY query budget address GravityDEXFarmingBudget --module-name farming
# > address: cosmos1228ryjucdpdv3t87rxle0ew76a56ulvnfst0hq0sscd3nafgjpqqkcxcky

This code snippet is how the module derives the account.

// cosmos1228ryjucdpdv3t87rxle0ew76a56ulvnfst0hq0sscd3nafgjpqqkcxcky
sdk.AccAddress(address.Module("farming", []byte("GravityDEXFarmingBudget")))

where the fields in the JSON file are:

name: the name of the budget plan used for display
description: the description of the budget plan used for display
rate: the distributing amount by ratio of the total budget source
source_address: the address where the source of budget comes from
destination_address: the address that collects budget from the budget source address
start_time: start time of the budget plan
end_time: end time of the budget plan

Use the following values for the fields:

{
  "title": "Create a Budget Plan",
  "description": "An example of Budget Plan for Gravtiy DEX Farming",
  "changes": [
    {
      "subspace": "budget",
      "key": "Budgets",
      "value": [
        {
          "name": "gravity-dex-farming-20213Q-20313Q",
          "rate": "0.500000000000000000",
          "source_address": "cosmos17xpfvakm2amg962yls6f84z3kell8c5lserqta",
          "destination_address": "cosmos1228ryjucdpdv3t87rxle0ew76a56ulvnfst0hq0sscd3nafgjpqqkcxcky",
          "start_time": "2021-09-01T00:00:00Z",
          "end_time": "2031-09-30T00:00:00Z"
        }
      ]
    }
  ],
  "deposit": "10000000stake"
}

Now, run each command one at a time. You can copy and paste each command in the command line in your terminal:

# Submit a param-change governance proposal
farmingd tx gov submit-proposal param-change budget-proposal.json \
--chain-id localnet \
--from user1 \
--keyring-backend test \
--broadcast-mode block \
--yes \
--output json | jq

# Query the proposal to check the status PROPOSAL_STATUS_VOTING_PERIOD
farmingd q gov proposals --output json | jq

# Vote
farmingd tx gov vote 1 yes \
--chain-id localnet \
--from val1 \
--keyring-backend test \
--broadcast-mode block \
--yes \
--output json | jq

#
# Wait a while (30s) for the proposal to pass
#

# Query the proposal again to check the status PROPOSAL_STATUS_PASSED
farmingd q gov proposals --output json | jq

# Query the values set as budget parameters
farmingd q budget params --output json | jq

Step 4. Query `GravityDEXFarmingBudget` account to see if coins are accrued

# Query balances of the Gravity DEX budget collector account address
farmingd q bank balances cosmos1228ryjucdpdv3t87rxle0ew76a56ulvnfst0hq0sscd3nafgjpqqkcxcky \
--output json | jq

Step 5. Send a governance proposal to create a public ratio amount plan

Now, create the public-ratio-plan-proposal.json file and copy the following JSON contents into the file.

In this demo, you create a public farming ratio plan to distribute 90% of of the balance of the farming pool address to the accounts who stake the coins that are defined in staking coin weights, the time period is from Sept. 01, 2021 to Sept. 24, 2021.

where the fields in the JSON file are:

name: is the name of the farming plan used for display. It allows duplicate value.
farming_pool_address: is the faucet address for the plan
termination_address: is the address that the remaining coins are transferred to when the plan ends
staking_coin_weights: are the coin weights for the plan. The weights must add up to 1
start_time: is start time of the farming plan
end_time: is start time of the farming plan
epoch_ratio: is the distributing amount by ratio per epoch

where the fields in the JSON file are:

{
  "title": "Public Farming Plan",
  "description": "Are you ready to farm?",
  "add_plan_requests": [
    {
      "name": "First Public Ratio Plan",
      "farming_pool_address": "cosmos1228ryjucdpdv3t87rxle0ew76a56ulvnfst0hq0sscd3nafgjpqqkcxcky",
      "termination_address": "cosmos1228ryjucdpdv3t87rxle0ew76a56ulvnfst0hq0sscd3nafgjpqqkcxcky",
      "staking_coin_weights": [
        {
          "denom": "pool93E069B333B5ECEBFE24C6E1437E814003248E0DD7FF8B9F82119F4587449BA5",
          "amount": "0.500000000000000000"
        },
        {
          "denom": "poolD35A0CC16EE598F90B044CE296A405BA9C381E38837599D96F2F70C2F02A23A4",
          "amount": "0.500000000000000000"
        }
      ],
      "start_time": "2021-09-01T00:00:00Z",
      "end_time": "2031-09-30T00:00:00Z",
      "epoch_ratio": "0.900000000000000000"
    }
  ]
}

Now, run each command one at a time. You can copy and paste each command in the command line in your terminal:

# Submit a public ratio plan governance proposal
farmingd tx gov submit-proposal public-farming-plan public-ratio-plan-proposal.json \
--chain-id localnet \
--from user1 \
--keyring-backend test \
--deposit 100000stake \
--broadcast-mode block \
--yes \
--output json | jq

# Query the proposal to check the status PROPOSAL_STATUS_VOTING_PERIOD
farmingd q gov proposals --output json | jq

# Vote
farmingd tx gov vote 2 yes \
--chain-id localnet \
--from val1 \
--keyring-backend test \
--broadcast-mode block \
--yes \
--output json | jq

#
# Wait for a while to pass the proposal (30s)
#

# Query the proposal again to check the status PROPOSAL_STATUS_PASSED
farmingd q gov proposals --output json | jq

# Query for all plans on a network
farmingd q farming plans --output json | jq

Step 6. Stake coins

# Query balance of user2
farmingd q bank balances cosmos185fflsvwrz0cx46w6qada7mdy92m6kx4gqx0ny \
--output json | jq

# Stake pool coin
farmingd tx farming stake 5000000poolD35A0CC16EE598F90B044CE296A405BA9C381E38837599D96F2F70C2F02A23A4 \
--chain-id localnet \
--from user2 \
--keyring-backend test \
--broadcast-mode block \
--yes \
--output json | jq

# Query for all stakings by a staker address
farmingd q farming stakings cosmos185fflsvwrz0cx46w6qada7mdy92m6kx4gqx0ny \
--output json | jq

# You can also query using the following command
# Query for all stakings by a staker address with the given staking coin denom
farmingd q farming stakings cosmos185fflsvwrz0cx46w6qada7mdy92m6kx4gqx0ny \
--staking-coin-denom poolD35A0CC16EE598F90B044CE296A405BA9C381E38837599D96F2F70C2F02A23A4 \
--output json | jq

Step 7. (Custom Message) Send AdvanceEpoch for Reward Distribution

To simulate reward distribution for this demo, enable a custom transaction message AdvanceEpoch when you build the binary farmingd with the make install-testing command.

When you send the AdvanceEpoch message to the network, it increases epoch by day 1.

In this step, you might wonder why you need to increase 2 epochs by sending two transactions to the network. The reason is to ensure fairness of distribution. The global parameter called next_epoch_days can be updated through a param change governance proposal. If the value of next_epoch_days is changed, it can lead to an edge case. Let's say next_epoch_days is 7 and it is changed to 1 although it hasn't proceeded up to 7 days before it is changed. Therefore, the internal state current_epoch_days is used to process staking and reward distribution in an end blocker. This technical decision has been made by the Gravity DEX team. To understand more about this decision, feel free to jump right into the code.

# Increase epoch by 1 
farmingd tx farming advance-epoch \
--chain-id localnet \
--from user2 \
--keyring-backend test \
--broadcast-mode block \
--yes \
--output json | jq

# Query for all stakings by a staker address
# Queued coins should have been moved to staked coins 
farmingd q farming stakings cosmos185fflsvwrz0cx46w6qada7mdy92m6kx4gqx0ny \
--output json | jq

# Increase epoch by 1 again to distribute rewards
farmingd tx farming advance-epoch \
--chain-id localnet \
--from user2 \
--keyring-backend test \
--broadcast-mode block \
--yes \
--output json | jq

# Query rewards
farmingd q farming rewards cosmos185fflsvwrz0cx46w6qada7mdy92m6kx4gqx0ny \
--output json | jq

Step 8. Harvest farming rewards

# Query balance of user2 account 
# There should be no rewards claimed yet
farmingd q bank balances cosmos185fflsvwrz0cx46w6qada7mdy92m6kx4gqx0ny \
--output json | jq

# Harvest all with all flag
farmingd tx farming harvest \
--chain-id localnet \
--from user2 \
--keyring-backend test \
--broadcast-mode block \
--all \
--yes \
--output json | jq

# Query the balance again to see if stake coin has increased
farmingd q bank balances cosmos185fflsvwrz0cx46w6qada7mdy92m6kx4gqx0ny \
--output json | jq

# You can also query with the following command
# Harvest farming rewards from the farming plan with the staking coin
farmingd tx farming harvest poolD35A0CC16EE598F90B044CE296A405BA9C381E38837599D96F2F70C2F02A23A4 \
--chain-id localnet \
--from user2 \
--keyring-backend test \
--broadcast-mode block \
--yes \
--output json | jq

Step 9. Modify the public farming ratio plan

Now create the multiple-public-ratio-plan-proposals.json file and copy the JSON contents into the file.

This step is intended to demonstrate the fact that you don't need to create another public ratio plan by sending another governance proposal. You can just modify the existing proposal and add another ratio plan.

Update the following values of the fields:

plan_id: 1
staking_coin_weights
- pool93E069B333B5ECEBFE24C6E1437E814003248E0DD7FF8B9F82119F4587449BA5 weight 50% → 100%
- poolD35A0CC16EE598F90B044CE296A405BA9C381E38837599D96F2F70C2F02A23A4 weight 50% → 0% ( deleted)
epoch_ratio: 0.500000000000000000 (50%)

Add a second public ratio plan proposal:

name: Second Public Ratio Plan
farming_pool_address: the Gravity DEX budget collector account address
termination_address: the Gravity DEX budget collector account address
staking_coin_weights
- pool3036F43CB8131A1A63D2B3D3B11E9CF6FA2A2B6FEC17D5AD283C25C939614A8C
- poolE4D2617BFE03E1146F6BBA1D9893F2B3D77BA29E7ED532BB721A39FF1ECC1B07
start_time: 2021-09-11T00:00:00Z
end_time: 2031-09-30T00:00:00Z
epoch_ratio: 0.500000000000000000 (50%)

{
  "title": "Update Public Farming Plan",
  "description": "Are you ready to farm?",
  "modify_plan_requests": [
    {
      "plan_id": 1,
      "name": "First Public Ratio Plan",
      "farming_pool_address": "cosmos1228ryjucdpdv3t87rxle0ew76a56ulvnfst0hq0sscd3nafgjpqqkcxcky",
      "termination_address": "cosmos1228ryjucdpdv3t87rxle0ew76a56ulvnfst0hq0sscd3nafgjpqqkcxcky",
      "staking_coin_weights": [
        {
          "denom": "pool93E069B333B5ECEBFE24C6E1437E814003248E0DD7FF8B9F82119F4587449BA5",
          "amount": "1.000000000000000000"
        }
      ],
      "start_time": "2021-09-01T00:00:00Z",
      "end_time": "2031-09-30T00:00:00Z",
      "epoch_ratio": "0.500000000000000000"
    }
  ],
  "add_plan_requests": [
    {
      "name": "Second Public Ratio Plan",
      "farming_pool_address": "cosmos1228ryjucdpdv3t87rxle0ew76a56ulvnfst0hq0sscd3nafgjpqqkcxcky",
      "termination_address": "cosmos1228ryjucdpdv3t87rxle0ew76a56ulvnfst0hq0sscd3nafgjpqqkcxcky",
      "staking_coin_weights": [
        {
          "denom": "pool3036F43CB8131A1A63D2B3D3B11E9CF6FA2A2B6FEC17D5AD283C25C939614A8C",
          "amount": "0.500000000000000000"
        },
        {
          "denom": "poolE4D2617BFE03E1146F6BBA1D9893F2B3D77BA29E7ED532BB721A39FF1ECC1B07",
          "amount": "0.500000000000000000"
        }
      ],
      "start_time": "2021-09-11T00:00:00Z",
      "end_time": "2031-09-30T00:00:00Z",
      "epoch_ratio": "0.500000000000000000"
    }
  ]
}

# Submit a public plan governance proposal
farmingd tx gov submit-proposal public-farming-plan multiple-public-ratio-plan-proposals.json \
--chain-id localnet \
--from user1 \
--keyring-backend test \
--deposit 100000stake \
--broadcast-mode block \
--gas 100000000 \
--yes \
--output json | jq

# Query the proposal to check the status PROPOSAL_STATUS_VOTING_PERIOD
farmingd q gov proposals --output json | jq

# Vote
farmingd tx gov vote 3 yes \
--chain-id localnet \
--from val1 \
--keyring-backend test \
--broadcast-mode block \
--yes \
--output json | jq

#
# Wait for a while to pass the proposal (30s)
#

# Query the proposal again to check the status PROPOSAL_STATUS_PASSED
farmingd q gov proposals --output json | jq

# Query for all plans on a network
farmingd q farming plans --output json | jq

#
# Plans are updated!
#

# Increase epoch by 1
farmingd tx farming advance-epoch \
--chain-id localnet \
--from user2 \
--keyring-backend test \
--broadcast-mode block \
--yes \
--output json | jq

# Query rewards
# Rewards should be empty because user2's staking coin is not defined
# in staking coin weights any more
farmingd q farming rewards cosmos185fflsvwrz0cx46w6qada7mdy92m6kx4gqx0ny \
--output json | jq

# Stake another pool coin that is defined in the second plan
farmingd tx farming stake 5000000pool3036F43CB8131A1A63D2B3D3B11E9CF6FA2A2B6FEC17D5AD283C25C939614A8C \
--chain-id localnet \
--from user2 \
--keyring-backend test \
--broadcast-mode block \
--yes \
--output json | jq

# Query what user2 is staking
farmingd q farming stakings cosmos185fflsvwrz0cx46w6qada7mdy92m6kx4gqx0ny \
--output json | jq

# Increase epoch by 2 again to distribute rewards
farmingd tx farming advance-epoch \
--chain-id localnet \
--from user2 \
--keyring-backend test \
--broadcast-mode block \
--yes \
--output json | jq

# Query rewards
farmingd q farming rewards cosmos185fflsvwrz0cx46w6qada7mdy92m6kx4gqx0ny \
--output json | jq

Conclusion

Throughout the demo, you learn what the budget and farming modules are and how they work to provide eseential functionalities in the Cosmos ecosystem. Thank you for taking your time and your interest.

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budget_with_farming.md

budget_with_farming.md

Demo

Changelog

What does budget module do?

What does the farming module do?

Resources

Demo

Step 1. Build from source

Step 2. Spin up a local node

Step 3. Send a governance proposal to create a budget plan

Step 4. Query `GravityDEXFarmingBudget` account to see if coins are accrued

Step 5. Send a governance proposal to create a public ratio amount plan

Step 6. Stake coins

Step 7. (Custom Message) Send AdvanceEpoch for Reward Distribution

Step 8. Harvest farming rewards

Step 9. Modify the public farming ratio plan

Conclusion

Files

budget_with_farming.md

Latest commit

History

budget_with_farming.md

File metadata and controls

Demo

Changelog

What does budget module do?

What does the farming module do?

Resources

Demo

Step 1. Build from source

Step 2. Spin up a local node

Step 3. Send a governance proposal to create a budget plan

Step 4. Query GravityDEXFarmingBudget account to see if coins are accrued

Step 5. Send a governance proposal to create a public ratio amount plan

Step 6. Stake coins

Step 7. (Custom Message) Send AdvanceEpoch for Reward Distribution

Step 8. Harvest farming rewards

Step 9. Modify the public farming ratio plan

Conclusion

Step 4. Query `GravityDEXFarmingBudget` account to see if coins are accrued