Merge pull request #138 from onomyprotocol/dong/BurnShortfall

vaults(gov): add gov handle shortfall from reserve

proto/reserve/vaults/proposal.proto

@@ -29,3 +29,13 @@ message UpdatesCollateralProposal {
   string               description = 2;
   MsgUpdatesCollateral updates_collateral     = 3 [(gogoproto.nullable) = false];
 }
+
+message BurnShortfallProposal {
+  option (gogoproto.goproto_getters)         = false;
+  option (cosmos_proto.implements_interface) = "cosmos.gov.v1beta1.Content";
+  option (amino.name)                        = "reserve/BurnShortfallProposal";
+
+  string               title       = 1;
+  string               description = 2;
+  MsgBurnShortfall burn_shortfall     = 3 [(gogoproto.nullable) = false];
+}

proto/reserve/vaults/tx.proto

@@ -44,6 +44,8 @@ service Msg {
 
   // Close defines a method for close vault
   rpc Close(MsgClose) returns (MsgCloseResponse);
+
+  rpc BurnShortfall(MsgBurnShortfall) returns (MsgBurnShortfallResponse);
 }
 
 message MsgUpdateParams {
@@ -295,3 +297,20 @@ message MsgClose {
 
 // MsgRepayResponse defines the Msg/Mint response type.
 message MsgCloseResponse {}
+
+message MsgBurnShortfall {
+  option (gogoproto.equal) = false;
+  option (gogoproto.goproto_getters) = false;
+  option (cosmos.msg.v1.signer) = "authority";
+
+  string authority = 1 [ (cosmos_proto.scalar) = "cosmos.AddressString" ];
+  string mint_denom = 2;
+  string amount = 3 [
+    (cosmos_proto.scalar) = "cosmos.Int",
+    (gogoproto.customtype) = "cosmossdk.io/math.Int",
+    (amino.dont_omitempty) = true,
+    (gogoproto.nullable) = false
+  ];
+}
+
+message MsgBurnShortfallResponse {}

x/vaults/keeper/keeper.go

@@ -263,4 +263,32 @@ func (k *Keeper) burnDebt(ctx context.Context, vmKey string, vm types.VaultManag
 	}
 	vm.MintAvailable = vm.MintAvailable.Add(coin.Amount)
 	return k.VaultsManager.Set(ctx, vmKey, vm)
-}
+}
+
+func (k *Keeper) BurnShortfallByMintDenom(ctx context.Context, mintDenom string, amount math.Int) error {
+	// get amount shortfall by mintdenom
+	amountShortfall, err := k.ShortfallAmount.Get(ctx, mintDenom)
+	if err != nil {
+		return err
+	}
+	if amountShortfall.LT(amount) {
+		return fmt.Errorf("amount shortfall is less than")
+	}
+	// get amount reserve by mintdenom
+	amountReserve := k.BankKeeper.GetAllBalances(ctx, k.accountKeeper.GetModuleAddress(types.ReserveModuleName)).AmountOf(mintDenom)
+	if amountReserve.LT(amount) {
+		return fmt.Errorf("amount reserve is less than")
+	}
+
+	// Burn token from Reserve module
+	if err := k.BankKeeper.BurnCoins(ctx, types.ReserveModuleName, sdk.NewCoins(sdk.NewCoin(mintDenom, amount))); err != nil {
+		return err
+	}
+
+	// Update shortfall amount after burning
+	remainingShortfall := amountShortfall.Sub(amount)
+	if err := k.ShortfallAmount.Set(ctx, mintDenom, remainingShortfall); err != nil {
+		return err
+	}
+	return nil
+}

x/vaults/keeper/msg_server.go

@@ -3,6 +3,7 @@ package keeper
 import (
 	"context"
 	"fmt"
+	"slices"
 
 	errorsmod "cosmossdk.io/errors"
 	sdk "github.com/cosmos/cosmos-sdk/types"
@@ -180,3 +181,26 @@ func (k msgServer) Close(ctx context.Context, msg *types.MsgClose) (*types.MsgCl
 	}
 	return &types.MsgCloseResponse{}, nil
 }
+
+// use mintDenom in reserve to burn Shortfall via gov
+func (k msgServer) BurnShortfall(ctx context.Context, msg *types.MsgBurnShortfall) (*types.MsgBurnShortfallResponse, error) {
+	err := msg.ValidateBasic()
+	if err != nil {
+		return &types.MsgBurnShortfallResponse{}, err
+	}
+
+	if k.authority != msg.Authority {
+		return nil, errorsmod.Wrapf(types.ErrInvalidSigner, "invalid authority; expected %s, got %s", k.authority, msg.Authority)
+	}
+
+	if !slices.Contains(k.GetParams(ctx).AllowedMintDenom, msg.MintDenom) {
+		return nil, fmt.Errorf("denom %s is not in the allowed mint denom list", msg.MintDenom)
+	}
+
+	err = k.BurnShortfallByMintDenom(ctx, msg.MintDenom, msg.Amount)
+	if err != nil {
+		return nil, err
+	}
+
+	return &types.MsgBurnShortfallResponse{}, nil
+}

x/vaults/keeper/msg_server_test.go

@@ -0,0 +1,194 @@
+package keeper_test
+
+import (
+	sdk "github.com/cosmos/cosmos-sdk/types"
+
+	"cosmossdk.io/math"
+
+	"github.com/onomyprotocol/reserve/x/vaults/types"
+)
+
+func (s *KeeperTestSuite) TestBurnShortfallByMintDenom() {
+	testcases := []struct {
+		name                        string
+		mintDenom                   string
+		setup                       func() types.MsgBurnShortfall
+		expShortfallAmountAfterBurn math.Int
+		expReserveBalcesAfterBurn   math.Int
+		expPass                     bool
+	}{
+		{
+			name:      "success burn part",
+			mintDenom: "fxUSD",
+			setup: func() types.MsgBurnShortfall {
+				// make sure reserve has money
+				mintCoin := sdk.NewCoins(sdk.NewCoin("fxUSD", math.NewInt(10_000_000)))
+				s.FundAccount(s.TestAccs[0], types.ModuleName, mintCoin)
+				err := s.k.BankKeeper.SendCoinsFromAccountToModule(s.Ctx, s.TestAccs[0], types.ReserveModuleName, mintCoin)
+				s.Require().NoError(err)
+
+				// make sure Guaranteed Shortfall Amount
+				err = s.k.ShortfallAmount.Set(s.Ctx, "fxUSD", math.NewInt(5_000_000))
+				s.Require().NoError(err)
+				return types.MsgBurnShortfall{
+					Authority: "onomy10d07y265gmmuvt4z0w9aw880jnsr700jqr8n8k",
+					MintDenom: "fxUSD",
+					Amount:    math.NewInt(1_000_000),
+				}
+			},
+			expShortfallAmountAfterBurn: math.NewInt(4_000_000),
+			expReserveBalcesAfterBurn:   math.NewInt(9_000_000),
+			expPass:                     true,
+		},
+		{
+			name:      "success maximum burn, shortfallAmount is less than reserve balances",
+			mintDenom: "fxUSD",
+			setup: func() types.MsgBurnShortfall {
+				// make sure reserve has money
+				mintCoin := sdk.NewCoins(sdk.NewCoin("fxUSD", math.NewInt(10_000_000)))
+				s.FundAccount(s.TestAccs[0], types.ModuleName, mintCoin)
+				err := s.k.BankKeeper.SendCoinsFromAccountToModule(s.Ctx, s.TestAccs[0], types.ReserveModuleName, mintCoin)
+				s.Require().NoError(err)
+
+				// make sure Guaranteed Shortfall Amount
+				err = s.k.ShortfallAmount.Set(s.Ctx, "fxUSD", math.NewInt(1_000_000))
+				s.Require().NoError(err)
+				return types.MsgBurnShortfall{
+					Authority: "onomy10d07y265gmmuvt4z0w9aw880jnsr700jqr8n8k",
+					MintDenom: "fxUSD",
+					Amount:    math.NewInt(1_000_000),
+				}
+			},
+			expShortfallAmountAfterBurn: math.ZeroInt(),
+			expReserveBalcesAfterBurn:   math.NewInt(9_000_000),
+			expPass:                     true,
+		},
+		{
+			name:      "success maximum burn, reserve balancess is less than shortfallAmount",
+			mintDenom: "fxUSD",
+			setup: func() types.MsgBurnShortfall {
+				// make sure reserve has money
+				mintCoin := sdk.NewCoins(sdk.NewCoin("fxUSD", math.NewInt(1_000_000)))
+				s.FundAccount(s.TestAccs[0], types.ModuleName, mintCoin)
+				err := s.k.BankKeeper.SendCoinsFromAccountToModule(s.Ctx, s.TestAccs[0], types.ReserveModuleName, mintCoin)
+				s.Require().NoError(err)
+
+				// make sure Guaranteed Shortfall Amount
+				err = s.k.ShortfallAmount.Set(s.Ctx, "fxUSD", math.NewInt(10_000_000))
+				s.Require().NoError(err)
+				return types.MsgBurnShortfall{
+					Authority: "onomy10d07y265gmmuvt4z0w9aw880jnsr700jqr8n8k",
+					MintDenom: "fxUSD",
+					Amount:    math.NewInt(1_000_000),
+				}
+			},
+			expShortfallAmountAfterBurn: math.NewInt(9_000_000),
+			expReserveBalcesAfterBurn:   math.ZeroInt(),
+			expPass:                     true,
+		},
+		{
+			name:      "fail, reserve balancess no money",
+			mintDenom: "fxUSD",
+			setup: func() types.MsgBurnShortfall {
+				// make sure Guaranteed Shortfall Amount
+				err := s.k.ShortfallAmount.Set(s.Ctx, "fxUSD", math.NewInt(10_000_000))
+				s.Require().NoError(err)
+				return types.MsgBurnShortfall{
+					Authority: "onomy10d07y265gmmuvt4z0w9aw880jnsr700jqr8n8k",
+					MintDenom: "fxUSD",
+					Amount:    math.NewInt(1_000_000),
+				}
+			},
+			expPass: false,
+		},
+		{
+			name:      "fail, government account not the signatory for the proposed message",
+			mintDenom: "fxUSD",
+			setup: func() types.MsgBurnShortfall {
+				// make sure reserve has money
+				mintCoin := sdk.NewCoins(sdk.NewCoin("fxUSD", math.NewInt(1_000_000)))
+				s.FundAccount(s.TestAccs[0], types.ModuleName, mintCoin)
+				err := s.k.BankKeeper.SendCoinsFromAccountToModule(s.Ctx, s.TestAccs[0], types.ReserveModuleName, mintCoin)
+				s.Require().NoError(err)
+
+				// make sure Guaranteed Shortfall Amount
+				err = s.k.ShortfallAmount.Set(s.Ctx, "fxUSD", math.NewInt(10_000_000))
+				s.Require().NoError(err)
+				return types.MsgBurnShortfall{
+					Authority: s.TestAccs[0].String(),
+					MintDenom: "fxUSD",
+					Amount:    math.NewInt(1_000_000),
+				}
+			},
+			expPass: false,
+		},
+		{
+			name:      "fail, denom is not in the allowed mint denom list",
+			mintDenom: "fxUSD",
+			setup: func() types.MsgBurnShortfall {
+				// make sure reserve has money
+				mintCoin := sdk.NewCoins(sdk.NewCoin("fxUSD", math.NewInt(1_000_000)))
+				s.FundAccount(s.TestAccs[0], types.ModuleName, mintCoin)
+				err := s.k.BankKeeper.SendCoinsFromAccountToModule(s.Ctx, s.TestAccs[0], types.ReserveModuleName, mintCoin)
+				s.Require().NoError(err)
+
+				// make sure Guaranteed Shortfall Amount
+				err = s.k.ShortfallAmount.Set(s.Ctx, "fxUSD", math.NewInt(10_000_000))
+				s.Require().NoError(err)
+				return types.MsgBurnShortfall{
+					Authority: s.TestAccs[0].String(),
+					MintDenom: "atom",
+					Amount:    math.NewInt(1_000_000),
+				}
+			},
+			expPass: false,
+		},
+		{
+			name:      "fail, burn all",
+			mintDenom: "fxUSD",
+			setup: func() types.MsgBurnShortfall {
+				// make sure reserve has money
+				mintCoin := sdk.NewCoins(sdk.NewCoin("fxUSD", math.NewInt(5_000_000)))
+				s.FundAccount(s.TestAccs[0], types.ModuleName, mintCoin)
+				err := s.k.BankKeeper.SendCoinsFromAccountToModule(s.Ctx, s.TestAccs[0], types.ReserveModuleName, mintCoin)
+				s.Require().NoError(err)
+
+				// make sure Guaranteed Shortfall Amount
+				err = s.k.ShortfallAmount.Set(s.Ctx, "fxUSD", math.NewInt(5_000_000))
+				s.Require().NoError(err)
+				return types.MsgBurnShortfall{
+					Authority: "onomy10d07y265gmmuvt4z0w9aw880jnsr700jqr8n8k",
+					MintDenom: "fxUSD",
+					Amount:    math.NewInt(10_000_000),
+				}
+			},
+			expPass: false,
+		},
+	}
+
+	for _, t := range testcases {
+		s.Run(t.name, func() {
+			s.SetupTest()
+			msg := t.setup()
+
+			// burn Shortfall
+			_, err := s.msgServer.BurnShortfall(s.Ctx, &msg)
+			if t.expPass {
+				s.Require().NoError(err)
+
+				// check reserve balances after burn
+				reserveBalces := s.k.BankKeeper.GetAllBalances(s.Ctx, s.App.AccountKeeper.GetModuleAddress(types.ReserveModuleName))
+				s.Require().True(reserveBalces.AmountOf(t.mintDenom).Equal(t.expReserveBalcesAfterBurn))
+
+				// check ShortfallAmount after burn
+
+				shortfallAmountAfterBurn, err := s.k.ShortfallAmount.Get(s.Ctx, t.mintDenom)
+				s.Require().NoError(err)
+
+				s.Require().True(shortfallAmountAfterBurn.Equal(t.expShortfallAmountAfterBurn))
+			} else {
+				s.Require().Error(err)
+			}
+		})
+	}
+}

x/vaults/module/proposal_handler.go

@@ -21,6 +21,9 @@ func NewVaultsProposalHandler(k *keeper.Keeper) govtypes.Handler {
 		case *types.UpdatesCollateralProposal:
 			_, err := msgSv.UpdatesCollateral(ctx, types.NewMsgUpdatesCollateral(c))
 			return err
+		case *types.BurnShortfallProposal:
+			_, err := msgSv.BurnShortfall(ctx, types.NewMsgBurnShortfall(c))
+			return err
 		default:
 			return errorsmod.Wrapf(sdkerrors.ErrUnknownRequest, "unrecognized %s proposal content type: %T", types.ModuleName, c)
 		}

x/vaults/types/codec.go

@@ -12,6 +12,7 @@ import (
 func RegisterLegacyAminoCodec(cdc *codec.LegacyAmino) {
 	cdc.RegisterConcrete(&ActiveCollateralProposal{}, "reserve/ActiveCollateralProposal", nil)
 	cdc.RegisterConcrete(&UpdatesCollateralProposal{}, "reserve/UpdatesCollateralProposal", nil)
+	cdc.RegisterConcrete(&BurnShortfallProposal{}, "reserve/BurnShortfallProposal", nil)
 }
 
 func RegisterInterfaces(registry cdctypes.InterfaceRegistry) {
@@ -20,6 +21,7 @@ func RegisterInterfaces(registry cdctypes.InterfaceRegistry) {
 	registry.RegisterImplementations((*sdk.Msg)(nil),
 		&MsgUpdateParams{},
 		&MsgActiveCollateral{},
+		&MsgBurnShortfall{},
 		&MsgUpdatesCollateral{},
 		&MsgCreateVault{},
 		&MsgDeposit{},
@@ -33,6 +35,7 @@ func RegisterInterfaces(registry cdctypes.InterfaceRegistry) {
 		(*govtypes.Content)(nil),
 		&ActiveCollateralProposal{},
 		&UpdatesCollateralProposal{},
+		&BurnShortfallProposal{},
 	)
 
 }