fix: instant redeem

CHANGELOG.md

@@ -34,6 +34,12 @@ Ref: https://keepachangelog.com/en/1.0.0/
 
 # Changelog
 
+## Unreleased
+
+### Bug Fixes
+
+- [707](https://github.com/persistenceOne/pstake-native/pull/707) Fix liquidstakeibc redeem edge case for protecting cValue  
+
 ## [v2.8.0] - 2023-12-20
 
 ### Features

x/liquidstakeibc/keeper/deposit.go

@@ -1,6 +1,7 @@
 package keeper
 
 import (
+	errorsmod "cosmossdk.io/errors"
 	"strconv"
 
 	"cosmossdk.io/math"
@@ -73,23 +74,23 @@ func (k *Keeper) GetTransactionSequenceID(channelID string, sequence uint64) str
 func (k *Keeper) AdjustDepositsForRedemption(
 	ctx sdk.Context,
 	hc *liquidstakeibctypes.HostChain,
-	redeemableAmount sdk.Coin,
+	redeemAmount sdk.Coin,
 ) error {
 	redeemableDeposits, depositsAmount := k.GetRedeemableDepositsForHostChain(ctx, hc)
-	if depositsAmount.LT(redeemableAmount.Amount) {
-		return nil
+	if depositsAmount.LT(redeemAmount.Amount) {
+		return errorsmod.Wrapf(liquidstakeibctypes.ErrInsufficientDeposits, "deposits are lesser than amount to be redeemed, deposits present %s, required %s", depositsAmount.String(), redeemAmount.Amount.String())
 	}
 
 	for _, deposit := range redeemableDeposits {
 		// there is enough tokens in this deposit to fulfill the redeem request
-		if deposit.Amount.Amount.GT(redeemableAmount.Amount) || redeemableAmount.IsZero() {
-			deposit.Amount = deposit.Amount.Sub(redeemableAmount)
+		if deposit.Amount.Amount.GT(redeemAmount.Amount) || redeemAmount.IsZero() {
+			deposit.Amount = deposit.Amount.Sub(redeemAmount)
 			k.SetDeposit(ctx, deposit)
 			return nil
 		}
 
 		// the deposit is not enough to fulfill the redeem request, use it and remove it
-		redeemableAmount = redeemableAmount.Sub(deposit.Amount)
+		redeemAmount = redeemAmount.Sub(deposit.Amount)
 		k.DeleteDeposit(ctx, deposit)
 	}
 

x/liquidstakeibc/keeper/deposit_test.go

@@ -106,7 +106,7 @@ func (suite *IntegrationTestSuite) TestAdjustDepositsForRedemption() {
 			redemptionAmount: sdk.Coin{Denom: HostDenom, Amount: sdk.NewInt(5000)},
 		},
 		{
-			name: "Case 2",
+			name: "try partial redeem",
 			deposits: []*types.Deposit{
 				{
 					ChainId: suite.chainB.ChainID,
@@ -119,6 +119,7 @@ func (suite *IntegrationTestSuite) TestAdjustDepositsForRedemption() {
 				epoch: {Denom: HostDenom, Amount: sdk.NewInt(3500)},
 			},
 			redemptionAmount: sdk.Coin{Denom: HostDenom, Amount: sdk.NewInt(5000)},
+			err:              types.ErrInsufficientDeposits,
 		},
 		{
 			name: "Case 3",
@@ -210,7 +211,11 @@ func (suite *IntegrationTestSuite) TestAdjustDepositsForRedemption() {
 				t.redemptionAmount,
 			)
 
-			suite.Require().Equal(t.err, err)
+			if t.err == nil {
+				suite.Require().Equal(t.err, err)
+			} else {
+				suite.Require().ErrorContains(err, t.err.Error())
+			}
 
 			for epoch, deposit := range t.expected {
 				depositState, ok := suite.app.LiquidStakeIBCKeeper.GetDepositForChainAndEpoch(suite.ctx, suite.chainB.ChainID, epoch)

x/liquidstakeibc/keeper/msg_server.go

@@ -11,7 +11,6 @@ import (
 	"github.com/cosmos/cosmos-sdk/telemetry"
 	sdktypes "github.com/cosmos/cosmos-sdk/types"
 	sdkerrors "github.com/cosmos/cosmos-sdk/types/errors"
-	authtypes "github.com/cosmos/cosmos-sdk/x/auth/types"
 	govtypes "github.com/cosmos/cosmos-sdk/x/gov/types"
 	stakingtypes "github.com/cosmos/cosmos-sdk/x/staking/types"
 	transfertypes "github.com/cosmos/ibc-go/v7/modules/apps/transfer/types"
@@ -791,20 +790,6 @@ func (k msgServer) Redeem(
 	redeemToken, _ := sdktypes.NewDecCoinFromDec(hc.IBCDenom(), redeemAmount).TruncateDecimal()
 
 	// check if there is enough deposits to fulfill the instant redemption request
-	depositAccountBalance := k.bankKeeper.GetBalance(
-		ctx,
-		authtypes.NewModuleAddress(types.DepositModuleAccount),
-		hc.IBCDenom(),
-	)
-	if redeemToken.IsGTE(depositAccountBalance) {
-		return nil, errorsmod.Wrapf(
-			sdkerrors.ErrInsufficientFunds,
-			"can't instant redeem %s tokens, only %s is available",
-			redeemToken.String(),
-			depositAccountBalance.Amount.String(),
-		)
-	}
-
 	// subtract the redemption amount from the deposits
 	if err := k.AdjustDepositsForRedemption(ctx, hc, redeemToken); err != nil {
 		return nil, errorsmod.Wrapf(
@@ -813,7 +798,8 @@ func (k msgServer) Redeem(
 		)
 	}
 
-	// send the instant redeemed token from module to the account
+	// send the instant redeemed token from module to the account,
+	//this will error out if there are insufficient redeemTokens
 	err = k.bankKeeper.SendCoinsFromModuleToAccount(
 		ctx,
 		types.DepositModuleAccount,

x/liquidstakeibc/types/errors.go

@@ -27,4 +27,5 @@ var (
 	ErrLSMNotEnabled            = errorsmod.Register(ModuleName, 2019, "host chain has LSM staking disabled")
 	ErrLSMDepositProcessing     = errorsmod.Register(ModuleName, 2020, "already processing LSM deposit")
 	ErrLSMValidatorInvalidState = errorsmod.Register(ModuleName, 2021, "validator invalid state")
+	ErrInsufficientDeposits     = errorsmod.Register(ModuleName, 2022, "insufficent deposits")
 )