Merge branch 'main' into disable-vesting

client/docs/static/openapi/openapi.yaml

@@ -15268,6 +15268,7 @@ paths:
                             - TRANSFER_STATE_PENDING
                             - TRANSFER_STATE_ARCHIVED
                             - TRANSFER_STATE_INSUFFICIENT_AMOUNT
+                            - TRANSFER_STATE_FAILED
                           default: TRANSFER_STATE_UNSPECIFIED
                       title: >-
                         CrossChainTransfer represents a generalized transfer of
@@ -15487,6 +15488,7 @@ paths:
               - TRANSFER_STATE_PENDING
               - TRANSFER_STATE_ARCHIVED
               - TRANSFER_STATE_INSUFFICIENT_AMOUNT
+              - TRANSFER_STATE_FAILED
         - name: pagination.key
           description: |-
             key is a value returned in PageResponse.next_key to begin
@@ -51544,6 +51546,7 @@ components:
             - TRANSFER_STATE_PENDING
             - TRANSFER_STATE_ARCHIVED
             - TRANSFER_STATE_INSUFFICIENT_AMOUNT
+            - TRANSFER_STATE_FAILED
           default: TRANSFER_STATE_UNSPECIFIED
       title: |-
         CrossChainTransfer represents a generalized transfer of some asset to a
@@ -51667,6 +51670,7 @@ components:
         - TRANSFER_STATE_PENDING
         - TRANSFER_STATE_ARCHIVED
         - TRANSFER_STATE_INSUFFICIENT_AMOUNT
+        - TRANSFER_STATE_FAILED
       default: TRANSFER_STATE_UNSPECIFIED
     axelar.nexus.v1beta1.ActivateChainRequest:
       type: object
@@ -52373,6 +52377,7 @@ components:
                   - TRANSFER_STATE_PENDING
                   - TRANSFER_STATE_ARCHIVED
                   - TRANSFER_STATE_INSUFFICIENT_AMOUNT
+                  - TRANSFER_STATE_FAILED
                 default: TRANSFER_STATE_UNSPECIFIED
             title: >-
               CrossChainTransfer represents a generalized transfer of some asset

client/docs/static/swagger/swagger.yaml

@@ -16781,6 +16781,7 @@ paths:
                         - TRANSFER_STATE_PENDING
                         - TRANSFER_STATE_ARCHIVED
                         - TRANSFER_STATE_INSUFFICIENT_AMOUNT
+                        - TRANSFER_STATE_FAILED
                       default: TRANSFER_STATE_UNSPECIFIED
                   title: >-
                     CrossChainTransfer represents a generalized transfer of some
@@ -17020,6 +17021,7 @@ paths:
             - TRANSFER_STATE_PENDING
             - TRANSFER_STATE_ARCHIVED
             - TRANSFER_STATE_INSUFFICIENT_AMOUNT
+            - TRANSFER_STATE_FAILED
         - name: pagination.key
           description: |-
             key is a value returned in PageResponse.next_key to begin
@@ -55964,6 +55966,7 @@ definitions:
           - TRANSFER_STATE_PENDING
           - TRANSFER_STATE_ARCHIVED
           - TRANSFER_STATE_INSUFFICIENT_AMOUNT
+          - TRANSFER_STATE_FAILED
         default: TRANSFER_STATE_UNSPECIFIED
     title: |-
       CrossChainTransfer represents a generalized transfer of some asset to a
@@ -56089,6 +56092,7 @@ definitions:
       - TRANSFER_STATE_PENDING
       - TRANSFER_STATE_ARCHIVED
       - TRANSFER_STATE_INSUFFICIENT_AMOUNT
+      - TRANSFER_STATE_FAILED
     default: TRANSFER_STATE_UNSPECIFIED
   axelar.nexus.v1beta1.ActivateChainRequest:
     type: object
@@ -56798,6 +56802,7 @@ definitions:
                 - TRANSFER_STATE_PENDING
                 - TRANSFER_STATE_ARCHIVED
                 - TRANSFER_STATE_INSUFFICIENT_AMOUNT
+                - TRANSFER_STATE_FAILED
               default: TRANSFER_STATE_UNSPECIFIED
           title: >-
             CrossChainTransfer represents a generalized transfer of some asset

go.mod

@@ -211,3 +211,5 @@ replace github.com/tendermint/tendermint => github.com/cometbft/cometbft v0.34.3
 
 // Temporary replacement for rosetta support
 replace github.com/cosmos/cosmos-sdk => github.com/axelarnetwork/cosmos-sdk v0.45.17-0.20240321205000-47c0c80e20ca
+
+replace github.com/CosmWasm/wasmd => github.com/axelarnetwork/wasmd v0.33.1-0.20241022183459-add3571298b2

proto/axelar/nexus/exported/v1beta1/types.proto

@@ -44,6 +44,7 @@ enum TransferState {
   TRANSFER_STATE_ARCHIVED = 2 [ (gogoproto.enumvalue_customname) = "Archived" ];
   TRANSFER_STATE_INSUFFICIENT_AMOUNT = 3
       [ (gogoproto.enumvalue_customname) = "InsufficientAmount" ];
+  TRANSFER_STATE_FAILED = 4 [ (gogoproto.enumvalue_customname) = "TransferFailed" ];
 }
 
 // TransferFee represents accumulated fees generated by the network

x/axelarnet/keeper/msg_server.go

@@ -255,27 +255,34 @@ func (s msgServer) ExecutePendingTransfers(c context.Context, _ *types.ExecutePe
 	}
 
 	for _, pendingTransfer := range pendingTransfers {
-		recipient, err := sdk.AccAddressFromBech32(pendingTransfer.Recipient.Address)
-		if err != nil {
-			s.Logger(ctx).Error(fmt.Sprintf("discard invalid recipient %s and continue", pendingTransfer.Recipient.Address))
-			s.nexus.ArchivePendingTransfer(ctx, pendingTransfer)
-			continue
-		}
+		success := utils.RunCached(ctx, s, func(ctx sdk.Context) (bool, error) {
+			recipient, err := sdk.AccAddressFromBech32(pendingTransfer.Recipient.Address)
+			if err != nil {
+				// NOTICE: Addresses that previously failed validation were marked as Archived. Starting in v1.1, they are now marked as TransferFailed.
+				s.Logger(ctx).Error(fmt.Sprintf("transfer failed due to invalid recipient %s", pendingTransfer.Recipient.Address))
+				return false, err
+			}
 
-		if err = transfer(ctx, s.Keeper, s.nexus, s.bank, s.ibcK, recipient, pendingTransfer.Asset); err != nil {
-			s.Logger(ctx).Error("failed to transfer asset to axelarnet", "err", err)
-			continue
-		}
+			if err = transfer(ctx, s.Keeper, s.nexus, s.bank, s.ibcK, recipient, pendingTransfer.Asset); err != nil {
+				s.Logger(ctx).Error("failed to transfer asset to axelarnet", "err", err)
+				return false, err
+			}
 
-		events.Emit(ctx,
-			&types.AxelarTransferCompleted{
-				ID:         pendingTransfer.ID,
-				Receipient: pendingTransfer.Recipient.Address,
-				Asset:      pendingTransfer.Asset,
-				Recipient:  pendingTransfer.Recipient.Address,
-			})
+			s.nexus.ArchivePendingTransfer(ctx, pendingTransfer)
+			events.Emit(ctx,
+				&types.AxelarTransferCompleted{
+					ID:         pendingTransfer.ID,
+					Receipient: pendingTransfer.Recipient.Address,
+					Asset:      pendingTransfer.Asset,
+					Recipient:  pendingTransfer.Recipient.Address,
+				})
 
-		s.nexus.ArchivePendingTransfer(ctx, pendingTransfer)
+			return true, nil
+		})
+
+		if !success {
+			s.nexus.MarkTransferAsFailed(ctx, pendingTransfer)
+		}
 	}
 
 	// release transfer fees

x/axelarnet/keeper/msg_server_test.go

@@ -298,7 +298,8 @@ func TestHandleMsgExecutePendingTransfers(t *testing.T) {
 			GetTransferFeesFunc: func(sdk.Context) sdk.Coins {
 				return sdk.Coins{}
 			},
-			SubTransferFeeFunc: func(sdk.Context, sdk.Coin) {},
+			SubTransferFeeFunc:       func(sdk.Context, sdk.Coin) {},
+			MarkTransferAsFailedFunc: func(sdk.Context, nexus.CrossChainTransfer) {},
 		}
 		bankK = &mock.BankKeeperMock{}
 		transferK = &mock.IBCTransferKeeperMock{}
@@ -357,11 +358,13 @@ func TestHandleMsgExecutePendingTransfers(t *testing.T) {
 						}
 					}).
 					When2(requestIsMade).
-					Then("should not archive the transfer", func(t *testing.T) {
+					Then("should mark the transfer as failed", func(t *testing.T) {
 						_, err := server.ExecutePendingTransfers(sdk.WrapSDKContext(ctx), req)
 						assert.NoError(t, err)
 
 						assert.Len(t, nexusK.ArchivePendingTransferCalls(), 0)
+						assert.Len(t, nexusK.MarkTransferAsFailedCalls(), 1)
+						assert.Len(t, ctx.EventManager().Events(), 0)
 					}),
 
 				whenHasPendingTransfers.

x/axelarnet/module.go

@@ -262,7 +262,7 @@ func (m AxelarnetIBCModule) OnAcknowledgementPacket(
 			return err
 		}
 
-		return m.setRoutedPacketFailed(ctx, packet)
+		return m.setRoutedPacketFailed(ctx, packet, m.bank)
 	}
 }
 
@@ -287,7 +287,7 @@ func (m AxelarnetIBCModule) OnTimeoutPacket(
 		return err
 	}
 
-	return m.setRoutedPacketFailed(ctx, packet)
+	return m.setRoutedPacketFailed(ctx, packet, m.bank)
 }
 
 // returns the transfer id and delete the existing mapping
@@ -334,7 +334,7 @@ func setRoutedPacketCompleted(ctx sdk.Context, k keeper.Keeper, n types.Nexus, p
 	return nil
 }
 
-func (m AxelarnetIBCModule) setRoutedPacketFailed(ctx sdk.Context, packet channeltypes.Packet) error {
+func (m AxelarnetIBCModule) setRoutedPacketFailed(ctx sdk.Context, packet channeltypes.Packet, bank types.BankKeeper) error {
 	// IBC ack/timeout packets, by convention, use the source port/channel to represent native chain -> counterparty chain channel id
 	// https://github.com/cosmos/ibc/tree/main/spec/core/ics-004-channel-and-packet-semantics#definitions
 	port, channel, sequence := packet.GetSourcePort(), packet.GetSourceChannel(), packet.GetSequence()
@@ -347,6 +347,11 @@ func (m AxelarnetIBCModule) setRoutedPacketFailed(ctx sdk.Context, packet channe
 			return err
 		}
 
+		err = refundFromAssetEscrowAddressToIBCAccount(ctx, packet, bank)
+		if err != nil {
+			return err
+		}
+
 		err = lockableAsset.LockFrom(ctx, types.AxelarIBCAccount)
 		if err != nil {
 			return err
@@ -395,3 +400,24 @@ func extractTokenFromAckOrTimeoutPacket(packet channeltypes.Packet) sdk.Coin {
 
 	return sdk.NewCoin(trace.IBCDenom(), amount)
 }
+
+// Temporary logic to handle in-transit IBC transfers during upgrade. Previously IBC transfers were sent from the asset
+// escrow address, but now they're sent from Axelar IBC account. IBC refunds the token to the original sender, so we move
+// the tokens from the asset escrow to the Axelar IBC account for correct processing.
+//
+// Deprecated: Remove this function after the v1.1 upgrade and ensure no in-transit IBC transfers are left.
+func refundFromAssetEscrowAddressToIBCAccount(ctx sdk.Context, packet channeltypes.Packet, bank types.BankKeeper) error {
+	// Packet is validated by the IBC module, so we can safely assume it's a valid ICS20 packet
+	data := funcs.Must(types.ToICS20Packet(packet))
+
+	originalSender := funcs.Must(sdk.AccAddressFromBech32(data.Sender))
+	if originalSender.Equals(types.AxelarIBCAccount) {
+		return nil
+	}
+
+	denom := ibctransfertypes.ParseDenomTrace(data.Denom).IBCDenom()
+	transferAmount := funcs.MustOk(sdk.NewIntFromString(data.Amount))
+
+	token := sdk.NewCoin(denom, transferAmount)
+	return bank.SendCoins(ctx, originalSender, types.AxelarIBCAccount, sdk.NewCoins(token))
+}

x/axelarnet/module_test.go

@@ -197,6 +197,7 @@ func TestIBCModule(t *testing.T) {
 					transfer := funcs.MustOk(k.GetTransfer(ctx, transfer.ID))
 					assert.Equal(t, types.TransferFailed, transfer.Status)
 					assert.Len(t, lockableAsset.LockFromCalls(), 1)
+					assert.Len(t, bankK.SendCoinsCalls(), 2)
 				}),
 
 			whenPendingTransfersExist.
@@ -237,5 +238,20 @@ func TestIBCModule(t *testing.T) {
 					assert.Equal(t, nexus.Failed, message.Status)
 					assert.Len(t, lockableAsset.LockFromCalls(), 1)
 				}),
+
+			seqMapsToID.
+				When2(whenChainIsActivated).
+				When("lock coin succeeds", lockCoin(true)).
+				When("packet sender is from IBC account", func() {
+					fungibleTokenPacket.Sender = types.AxelarIBCAccount.String()
+					packet = channeltypes.NewPacket(fungibleTokenPacket.GetBytes(), packetSeq, ibctransfertypes.PortID, channelID, ibctransfertypes.PortID, channelID, clienttypes.NewHeight(0, 110), 0)
+				}).
+				When2(whenOnTimeout).
+				Then("should not trigger refund from asset escrow to IBC account", func(t *testing.T) {
+					transfer := funcs.MustOk(k.GetTransfer(ctx, transfer.ID))
+					assert.Equal(t, types.TransferFailed, transfer.Status)
+					assert.Len(t, lockableAsset.LockFromCalls(), 1)
+					assert.Len(t, bankK.SendCoinsCalls(), 1)
+				}),
 		).Run(t)
 }

x/axelarnet/types/expected_keepers.go

@@ -79,6 +79,7 @@ type Nexus interface {
 	EnqueueTransfer(ctx sdk.Context, senderChain nexus.Chain, recipient nexus.CrossChainAddress, asset sdk.Coin) (nexus.TransferID, error)
 	GetTransfersForChainPaginated(ctx sdk.Context, chain nexus.Chain, state nexus.TransferState, pageRequest *query.PageRequest) ([]nexus.CrossChainTransfer, *query.PageResponse, error)
 	ArchivePendingTransfer(ctx sdk.Context, transfer nexus.CrossChainTransfer)
+	MarkTransferAsFailed(ctx sdk.Context, transfer nexus.CrossChainTransfer)
 	RegisterAsset(ctx sdk.Context, chain nexus.Chain, asset nexus.Asset, limit sdk.Uint, window time.Duration) error
 	GetRecipient(ctx sdk.Context, sender nexus.CrossChainAddress) (nexus.CrossChainAddress, bool)
 	SetChain(ctx sdk.Context, chain nexus.Chain)