add outer bound updates + tests

app/upgrades/v25/upgrades.go

@@ -14,7 +14,18 @@ import (
 	staketiatypes "github.com/Stride-Labs/stride/v24/x/staketia/types"
 )
 
-const UpgradeName = "v25"
+var (
+	UpgradeName = "v25"
+
+	// Redemption rate bounds updated to give ~3 months of slack on outer bounds
+	RedemptionRateOuterMinAdjustment = sdk.MustNewDecFromStr("0.05")
+	RedemptionRateOuterMaxAdjustment = sdk.MustNewDecFromStr("0.10")
+
+	// Osmosis will have a slighly larger buffer with the redemption rate
+	// since their yield is less predictable
+	OsmosisChainId              = "osmosis-1"
+	OsmosisRedemptionRateBuffer = sdk.MustNewDecFromStr("0.02")
+)
 
 // CreateUpgradeHandler creates an SDK upgrade handler for v25
 func CreateUpgradeHandler(
@@ -38,6 +49,9 @@ func CreateUpgradeHandler(
 			return vm, errorsmod.Wrapf(err, "unable to add celestia validators")
 		}
 
+		// Update redemption rate bounds
+		UpdateRedemptionRateBounds(ctx, stakeibcKeeper)
+
 		ctx.Logger().Info("Running module migrations...")
 		return mm.RunMigrations(ctx, configurator, vm)
 	}
@@ -63,3 +77,27 @@ func AddCelestiaValidators(ctx sdk.Context, k stakeibckeeper.Keeper) error {
 	}
 	return nil
 }
+
+// Updates the outer redemption rate bounds
+func UpdateRedemptionRateBounds(ctx sdk.Context, k stakeibckeeper.Keeper) {
+	ctx.Logger().Info("Updating redemption rate outer bounds...")
+
+	for _, hostZone := range k.GetAllHostZone(ctx) {
+		// Give osmosis a bit more slack since OSMO stakers collect real yield
+		outerAdjustment := RedemptionRateOuterMaxAdjustment
+		if hostZone.ChainId == OsmosisChainId {
+			outerAdjustment = outerAdjustment.Add(OsmosisRedemptionRateBuffer)
+		}
+
+		outerMinDelta := hostZone.RedemptionRate.Mul(RedemptionRateOuterMinAdjustment)
+		outerMaxDelta := hostZone.RedemptionRate.Mul(outerAdjustment)
+
+		outerMin := hostZone.RedemptionRate.Sub(outerMinDelta)
+		outerMax := hostZone.RedemptionRate.Add(outerMaxDelta)
+
+		hostZone.MinRedemptionRate = outerMin
+		hostZone.MaxRedemptionRate = outerMax
+
+		k.SetHostZone(ctx, hostZone)
+	}
+}

app/upgrades/v25/upgrades_test.go

@@ -8,6 +8,13 @@ import (
 	"github.com/Stride-Labs/stride/v24/app/apptesting"
 )
 
+type UpdateRedemptionRateBounds struct {
+	ChainId                        string
+	CurrentRedemptionRate          sdk.Dec
+	ExpectedMinOuterRedemptionRate sdk.Dec
+	ExpectedMaxOuterRedemptionRate sdk.Dec
+}
+
 type UpgradeTestSuite struct {
 	apptesting.AppTestHelper
 }
@@ -21,5 +28,59 @@ func TestKeeperTestSuite(t *testing.T) {
 }
 
 func (s *UpgradeTestSuite) TestUpgrade() {
+	// Pre upgrade setup --------------------------
+	upgradeHeight := int64(4)
+	checkRedemptionRatesAfterUpgrade := s.SetupTestUpdateRedemptionRateBounds()
+
+	// Run the upgrade --------------------------
+	s.ConfirmUpgradeSucceededs(v24.UpgradeName, upgradeHeight)
+
+	// Post upgrade tests --------------------------
+	checkRedemptionRatesAfterUpgrade()
+}
+
+func (s *UpgradeTestSuite) SetupTestUpdateRedemptionRateBounds() func() {
+	// Define test cases consisting of an initial redemption rate and expected bounds
+	testCases := []UpdateRedemptionRateBounds{
+		{
+			ChainId:                        "chain-0",
+			CurrentRedemptionRate:          sdk.MustNewDecFromStr("1.0"),
+			ExpectedMinOuterRedemptionRate: sdk.MustNewDecFromStr("0.95"), // 1 - 5% = 0.95
+			ExpectedMaxOuterRedemptionRate: sdk.MustNewDecFromStr("1.10"), // 1 + 10% = 1.1
+		},
+		{
+			ChainId:                        "chain-1",
+			CurrentRedemptionRate:          sdk.MustNewDecFromStr("1.1"),
+			ExpectedMinOuterRedemptionRate: sdk.MustNewDecFromStr("1.045"), // 1.1 - 5% = 1.045
+			ExpectedMaxOuterRedemptionRate: sdk.MustNewDecFromStr("1.210"), // 1.1 + 10% = 1.21
+		},
+		{
+			// Max outer for osmo uses 12% instead of 10%
+			ChainId:                        v24.OsmosisChainId,
+			CurrentRedemptionRate:          sdk.MustNewDecFromStr("1.25"),
+			ExpectedMinOuterRedemptionRate: sdk.MustNewDecFromStr("1.1875"), // 1.25 - 5% = 1.1875
+			ExpectedMaxOuterRedemptionRate: sdk.MustNewDecFromStr("1.4000"), // 1.25 + 12% = 1.400
+		},
+	}
+
+	// Create a host zone for each test case
+	for _, tc := range testCases {
+		hostZone := stakeibctypes.HostZone{
+			ChainId:        tc.ChainId,
+			RedemptionRate: tc.CurrentRedemptionRate,
+		}
+		s.App.StakeibcKeeper.SetHostZone(s.Ctx, hostZone)
+	}
+
+	// Return callback to check store after upgrade
+	return func() {
+		// Confirm they were all updated
+		for _, tc := range testCases {
+			hostZone, found := s.App.StakeibcKeeper.GetHostZone(s.Ctx, tc.ChainId)
+			s.Require().True(found)
 
+			s.Require().Equal(tc.ExpectedMinOuterRedemptionRate, hostZone.MinRedemptionRate, "%s - min outer", tc.ChainId)
+			s.Require().Equal(tc.ExpectedMaxOuterRedemptionRate, hostZone.MaxRedemptionRate, "%s - max outer", tc.ChainId)
+		}
+	}
 }