expire stake max(w, min_unbonding_time) before timelock ends

proto/babylon/btcstaking/v1/tx.proto

@@ -108,7 +108,7 @@ message MsgCreateBTCDelegation {
   // - unbonding transaction, time lock spending path
   // - staking slashing transaction, change output
   // - unbonding slashing transaction, change output
-  // It must be smaller than (staking_time - CheckpointFinalizationTimeout) and larger that max(MinUnbondingTime, CheckpointFinalizationTimeout)
+  // It must be smaller than math.MaxUInt16 and larger that max(MinUnbondingTime, CheckpointFinalizationTimeout)
   uint32 unbonding_time = 11;
   // fields related to unbonding transaction
   // unbonding_tx is a bitcoin unbonding transaction i.e transaction that spends

x/btcstaking/keeper/btc_delegations.go

@@ -75,8 +75,14 @@ func (k Keeper) AddBTCDelegation(ctx sdk.Context, btcDel *types.BTCDelegation) e
 			StakingTxHash: stakingTxHash.String(),
 			NewState:      types.BTCDelegationStatus_UNBONDED,
 		})
-		// NOTE: we should have verified that EndHeight > btcTip.Height + btcDel.UnbondingTime
-		k.addPowerDistUpdateEvent(ctx, btcDel.EndHeight-btcDel.UnbondingTime, unbondedEvent)
+
+		btccheckpointParams := k.btccKeeper.GetParams(ctx)
+		stakingParams := k.GetParamsWithVersion(ctx).Params
+
+		minUnbondingTime := types.MinimumUnbondingTime(&stakingParams, &btccheckpointParams)
+
+		// NOTE: we should have verified that EndHeight > btcTip.Height + max(w, min_unbonding_time)
+		k.addPowerDistUpdateEvent(ctx, btcDel.EndHeight-minUnbondingTime, unbondedEvent)
 	}
 
 	return nil

x/btcstaking/keeper/genesis_test.go

@@ -15,11 +15,14 @@ import (
 
 func TestExportGenesis(t *testing.T) {
 	r, h := rand.New(rand.NewSource(11)), helper.NewHelper(t)
-	k, btclcK, _, ctx := h.App.BTCStakingKeeper, h.App.BTCLightClientKeeper, h.App.BtcCheckpointKeeper, h.Ctx
+	k, btclcK, btcCheckK, ctx := h.App.BTCStakingKeeper, h.App.BTCLightClientKeeper, h.App.BtcCheckpointKeeper, h.Ctx
 	numFps := 3
 
 	fps := datagen.CreateNFinalityProviders(r, t, numFps)
 	params := k.GetParams(ctx)
+	btcckptParams := btcCheckK.GetParams(ctx)
+
+	minUnbondingTime := types.MinimumUnbondingTime(&params, &btcckptParams)
 
 	chainsHeight := make([]*types.BlockHeightBbnToBtc, 0)
 	// creates the first as it starts already with an chain height from the helper.
@@ -98,7 +101,7 @@ func TestExportGenesis(t *testing.T) {
 			idxEvent := uint64(totalDelegations - 1)
 			eventsIdx[idxEvent] = &types.EventIndex{
 				Idx:            idxEvent,
-				BlockHeightBtc: del.EndHeight - del.UnbondingTime,
+				BlockHeightBtc: del.EndHeight - minUnbondingTime,
 				Event:          unbondedEvent,
 			}
 		}

x/btcstaking/keeper/inclusion_proof.go

@@ -16,13 +16,13 @@ type delegationTimeRangeInfo struct {
 }
 
 // VerifyInclusionProofAndGetHeight verifies the inclusion proof of the given staking tx
-// and returns the inclusion height as well as endheigh
+// and returns the start height and end height
 func (k Keeper) VerifyInclusionProofAndGetHeight(
 	ctx sdk.Context,
 	stakingTx *btcutil.Tx,
 	confirmationDepth uint32,
 	stakingTime uint32,
-	unbondingTime uint32,
+	minUnbondingTime uint32,
 	inclusionProof *types.ParsedProofOfInclusion,
 ) (*delegationTimeRangeInfo, error) {
 	// Check:
@@ -59,8 +59,8 @@ func (k Keeper) VerifyInclusionProofAndGetHeight(
 		return nil, types.ErrInvalidStakingTx.Wrapf("not k-deep: k=%d; depth=%d", confirmationDepth, stakingTxDepth)
 	}
 	// ensure staking tx's timelock has more than unbonding BTC blocks left
-	if btcTip.Height+unbondingTime >= endHeight {
-		return nil, types.ErrInvalidStakingTx.Wrapf("staking tx's timelock has no more than unbonding(=%d) blocks left", unbondingTime)
+	if btcTip.Height+minUnbondingTime >= endHeight {
+		return nil, types.ErrInvalidStakingTx.Wrapf("staking tx's timelock has no more than unbonding(=%d) blocks left", minUnbondingTime)
 	}
 
 	return &delegationTimeRangeInfo{

x/btcstaking/keeper/msg_server.go

@@ -183,6 +183,8 @@ func (ms msgServer) CreateBTCDelegation(goCtx context.Context, req *types.MsgCre
 		return nil, err
 	}
 
+	minUnbondingTime := types.MinimumUnbondingTime(&vp.Params, &btccParams)
+
 	// 6. If the delegation contains the inclusion proof, we need to verify the proof
 	// and set start height and end height
 	var startHeight, endHeight uint32
@@ -192,7 +194,7 @@ func (ms msgServer) CreateBTCDelegation(goCtx context.Context, req *types.MsgCre
 			btcutil.NewTx(parsedMsg.StakingTx.Transaction),
 			btccParams.BtcConfirmationDepth,
 			uint32(parsedMsg.StakingTime),
-			uint32(parsedMsg.UnbondingTime),
+			minUnbondingTime,
 			parsedMsg.StakingTxProofOfInclusion)
 		if err != nil {
 			return nil, fmt.Errorf("invalid inclusion proof: %w", err)
@@ -285,12 +287,14 @@ func (ms msgServer) AddBTCDelegationInclusionProof(
 
 	btccParams := ms.btccKeeper.GetParams(ctx)
 
+	minUnbondingTime := types.MinimumUnbondingTime(params, &btccParams)
+
 	timeInfo, err := ms.VerifyInclusionProofAndGetHeight(
 		ctx,
 		btcutil.NewTx(stakingTx),
 		btccParams.BtcConfirmationDepth,
 		btcDel.StakingTime,
-		btcDel.UnbondingTime,
+		minUnbondingTime,
 		parsedInclusionProof,
 	)
 
@@ -332,8 +336,8 @@ func (ms msgServer) AddBTCDelegationInclusionProof(
 		NewState:      types.BTCDelegationStatus_UNBONDED,
 	})
 
-	// NOTE: we should have verified that EndHeight > btcTip.Height + btcDel.UnbondingTime
-	ms.addPowerDistUpdateEvent(ctx, btcDel.EndHeight-btcDel.UnbondingTime, unbondedEvent)
+	// NOTE: we should have verified that EndHeight > btcTip.Height + max(w, min_unbonding_time)
+	ms.addPowerDistUpdateEvent(ctx, btcDel.EndHeight-minUnbondingTime, unbondedEvent)
 
 	// at this point, the BTC delegation inclusion proof is verified and is not duplicated
 	// thus, we can safely consider this message as refundable

x/btcstaking/keeper/power_dist_change_test.go

@@ -459,8 +459,14 @@ func FuzzBTCDelegationEvents_NoPreApproval(f *testing.F) {
 		btcTip := btclcKeeper.GetTipInfo(h.Ctx)
 		events := h.BTCStakingKeeper.GetAllPowerDistUpdateEvents(h.Ctx, btcTip.Height, btcTip.Height)
 		require.Len(t, events, 0)
-		// the BTC delegation will be unbonded at end height - unbonding time
-		unbondedHeight := actualDel.EndHeight - actualDel.UnbondingTime
+
+		btckptParams := btccKeeper.GetParams(h.Ctx)
+		stakingParams := h.BTCStakingKeeper.GetParamsWithVersion(h.Ctx).Params
+
+		minUnbondingTime := types.MinimumUnbondingTime(&stakingParams, &btckptParams)
+
+		// the BTC delegation will be unbonded at end height - max(w, min_unbonding_time)
+		unbondedHeight := actualDel.EndHeight - minUnbondingTime
 		events = h.BTCStakingKeeper.GetAllPowerDistUpdateEvents(h.Ctx, unbondedHeight, unbondedHeight)
 		require.Len(t, events, 1)
 		btcDelStateUpdate := events[0].GetBtcDelStateUpdate()
@@ -612,8 +618,14 @@ func FuzzBTCDelegationEvents_WithPreApproval(f *testing.F) {
 		require.NotNil(t, btcDelStateUpdate)
 		require.Equal(t, stakingTxHash, btcDelStateUpdate.StakingTxHash)
 		require.Equal(t, types.BTCDelegationStatus_ACTIVE, btcDelStateUpdate.NewState)
-		// there exists 1 event that the BTC delegation becomes unbonded at end height - w
-		unbondedHeight := activatedDel.EndHeight - activatedDel.UnbondingTime
+
+		btckptParams := btccKeeper.GetParams(h.Ctx)
+		stakingParams := h.BTCStakingKeeper.GetParamsWithVersion(h.Ctx).Params
+
+		minUnbondingTime := types.MinimumUnbondingTime(&stakingParams, &btckptParams)
+
+		// the BTC delegation will be unbonded at end height - max(w, min_unbonding_time)
+		unbondedHeight := activatedDel.EndHeight - minUnbondingTime
 		events = h.BTCStakingKeeper.GetAllPowerDistUpdateEvents(h.Ctx, unbondedHeight, unbondedHeight)
 		require.Len(t, events, 1)
 		btcDelStateUpdate = events[0].GetBtcDelStateUpdate()
@@ -704,8 +716,14 @@ func TestDoNotGenerateDuplicateEventsAfterHavingCovenantQuorum(t *testing.T) {
 	btcTip := btclcKeeper.GetTipInfo(h.Ctx)
 	events := h.BTCStakingKeeper.GetAllPowerDistUpdateEvents(h.Ctx, btcTip.Height, btcTip.Height)
 	require.Len(t, events, 0)
-	// the BTC delegation will be unbonded at end height - w
-	unbondedHeight := actualDel.EndHeight - actualDel.UnbondingTime
+
+	btckptParams := btccKeeper.GetParams(h.Ctx)
+	stakingParams := h.BTCStakingKeeper.GetParamsWithVersion(h.Ctx).Params
+
+	minUnbondingTime := types.MinimumUnbondingTime(&stakingParams, &btckptParams)
+
+	// the BTC delegation will be unbonded at end height - max(w, min_unbonding_time)
+	unbondedHeight := actualDel.EndHeight - minUnbondingTime
 	events = h.BTCStakingKeeper.GetAllPowerDistUpdateEvents(h.Ctx, unbondedHeight, unbondedHeight)
 	require.Len(t, events, 1)
 	btcDelStateUpdate := events[0].GetBtcDelStateUpdate()

x/btcstaking/types/validate_parsed_message.go

@@ -77,22 +77,6 @@ func ValidateParsedMessageAgainstTheParams(
 			parameters.MaxStakingValueSat,
 		)
 	}
-	// at this point we validated that pm.StakingTime >= parameters.MinStakingTimeBlocks
-	// and parameters.MinStakingTimeBlocks should always be > btcheckpointParamseters.CheckpointFinalizationTimeout
-	// and parameters.MinStakingTimeBlocks > MinUnbondingTimeBlocks
-	maxUnbondingTime := pm.StakingTime - uint16(btcheckpointParamseters.CheckpointFinalizationTimeout)
-
-	// this is necessary to avoid creating delegationd which later cannot be
-	// acitvated, as voting power of delegation is removed pm.UnbondingTime before
-	// timelock finishes
-	if pm.UnbondingTime > uint16(maxUnbondingTime) {
-		return nil, ErrInvalidUnbondingTx.Wrapf(
-			"unbonding time value %d is out of bounds. Min: %d, Max: %d",
-			pm.UnbondingTime,
-			minUnbondingTime,
-			maxUnbondingTime,
-		)
-	}
 
 	if err := btcstaking.CheckSlashingTxMatchFundingTx(
 		pm.StakingSlashingTx.Transaction,