feat(x/incentives): min value param for epoch distribution (#7615)

* min osmo value for distribution

* add changelog entry

* test fixes

* update tests and add fixes shown from tests

* spelling

* change param to be Coin instead of int

* lints

* address tests

* Update x/incentives/keeper/distribute.go

Co-authored-by: Nicolas Lara <[email protected]>

* fmt

---------

Co-authored-by: Matt, Park <[email protected]>
Co-authored-by: Nicolas Lara <[email protected]>

CHANGELOG.md

@@ -55,6 +55,7 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 * [#7555](https://github.com/osmosis-labs/osmosis/pull/7555) Refactor taker fees, distribute via a single module account, track once at epoch
 * [#7562](https://github.com/osmosis-labs/osmosis/pull/7562) Speedup Protorev estimation logic by removing unnecessary taker fee simulations.
 * [#7595](https://github.com/osmosis-labs/osmosis/pull/7595) Fix cosmwasm pool model code ID migration.
+* [#7615](https://github.com/osmosis-labs/osmosis/pull/7615) Min value param for epoch distribution.
 * [#7619](https://github.com/osmosis-labs/osmosis/pull/7619) Slight speedup/gas improvement to CL GetTotalPoolLiquidity queries
 * [#7622](https://github.com/osmosis-labs/osmosis/pull/7622) Create/remove tick events.
 * [#7623](https://github.com/osmosis-labs/osmosis/pull/7623) Add query for querying all before send hooks

app/keepers/keepers.go

@@ -437,6 +437,7 @@ func (appKeepers *AppKeepers) InitNormalKeepers(
 		appKeepers.ConcentratedLiquidityKeeper,
 		appKeepers.PoolManagerKeeper,
 		appKeepers.PoolIncentivesKeeper,
+		appKeepers.ProtoRevKeeper,
 	)
 	appKeepers.ConcentratedLiquidityKeeper.SetIncentivesKeeper(appKeepers.IncentivesKeeper)
 	appKeepers.GAMMKeeper.SetIncentivesKeeper(appKeepers.IncentivesKeeper)

app/upgrades/v24/upgrades.go

@@ -7,6 +7,8 @@ import (
 
 	"github.com/osmosis-labs/osmosis/v23/app/keepers"
 	"github.com/osmosis-labs/osmosis/v23/app/upgrades"
+
+	incentivestypes "github.com/osmosis-labs/osmosis/v23/x/incentives/types"
 )
 
 func CreateUpgradeHandler(
@@ -39,6 +41,10 @@ func CreateUpgradeHandler(
 		// since we only need the pool indexed TWAPs.
 		keepers.TwapKeeper.DeleteAllHistoricalTimeIndexedTWAPs(ctx)
 
+		// Set the new min value for distribution for the incentives module.
+		// https://www.mintscan.io/osmosis/proposals/733
+		keepers.IncentivesKeeper.SetParam(ctx, incentivestypes.KeyMinValueForDistr, incentivestypes.DefaultMinValueForDistr)
+
 		return migrations, nil
 	}
 }

app/upgrades/v24/upgrades_test.go

@@ -16,6 +16,7 @@ import (
 	"github.com/osmosis-labs/osmosis/osmoutils"
 	"github.com/osmosis-labs/osmosis/v23/app/apptesting"
 
+	incentivestypes "github.com/osmosis-labs/osmosis/v23/x/incentives/types"
 	protorevtypes "github.com/osmosis-labs/osmosis/v23/x/protorev/types"
 	"github.com/osmosis-labs/osmosis/v23/x/twap/types"
 	twaptypes "github.com/osmosis-labs/osmosis/v23/x/twap/types"
@@ -131,6 +132,13 @@ func (s *UpgradeTestSuite) TestUpgrade() {
 	oldBaseDenoms, err = s.App.ProtoRevKeeper.DeprecatedGetAllBaseDenoms(s.Ctx)
 	s.Require().NoError(err)
 	s.Require().Empty(oldBaseDenoms)
+
+	// INCENTIVES Tests
+	//
+
+	// Check that the new min value for distribution has been set
+	params := s.App.IncentivesKeeper.GetParams(s.Ctx)
+	s.Require().Equal(incentivestypes.DefaultMinValueForDistr, params.MinValueForDistribution)
 }
 
 func dummyUpgrade(s *UpgradeTestSuite) {

proto/osmosis/incentives/params.proto

@@ -44,4 +44,11 @@ message Params {
     (gogoproto.stdduration) = true,
     (gogoproto.moretags) = "yaml:\"internal_uptime\""
   ];
+  // min_value_for_distribution is the minimum amount a token must be worth
+  // in order to be eligible for distribution. If the token is worth
+  // less than this amount (or the route between the two denoms is not
+  // registered), it will not be distributed and is forfeited to the remaining
+  // distributees that are eligible.
+  cosmos.base.v1beta1.Coin min_value_for_distribution = 5
+      [ (gogoproto.nullable) = false ];
 }

x/cosmwasmpool/cosmwasm/msg/transmuter/transmuter_test.go

@@ -50,6 +50,9 @@ func (s *TransmuterSuite) TestFunctionalTransmuter() {
 		expectedDenomSuffix  = "/transmuter/poolshare"
 	)
 
+	// Set base denom
+	s.App.IncentivesKeeper.SetParam(s.Ctx, incentivetypes.KeyMinValueForDistr, sdk.NewCoin("uosmo", osmomath.NewInt(10000)))
+
 	// Create Transmuter pool
 	transmuter := s.PrepareCosmWasmPool()
 

x/incentives/keeper/distribute.go

@@ -23,8 +23,15 @@ import (
 
 var (
 	millisecondsInSecDec = osmomath.NewDec(1000)
+	zeroInt              = osmomath.ZeroInt()
 )
 
+// DistributionValueCache is a cache for when we calculate the minimum value
+// an underlying token must be to be distributed.
+type DistributionValueCache struct {
+	denomToMinValueMap map[string]osmomath.Int
+}
+
 // AllocateAcrossGauges for every gauge in the input, it updates the weights according to the splitting
 // policy and allocates the coins to the underlying gauges per the updated weights.
 // Note, every group is associated with a group gauge. The distribution to regular gauges
@@ -388,7 +395,7 @@ func (k Keeper) doDistributionSends(ctx sdk.Context, distrs *distributionInfo) e
 // the distrInfo struct. It also updates the gauge for the distribution.
 // locks is expected to be the correct set of lock recipients for this gauge.
 func (k Keeper) distributeSyntheticInternal(
-	ctx sdk.Context, gauge types.Gauge, locks []*lockuptypes.PeriodLock, distrInfo *distributionInfo,
+	ctx sdk.Context, gauge types.Gauge, locks []*lockuptypes.PeriodLock, distrInfo *distributionInfo, minDistrValueCache *DistributionValueCache,
 ) (sdk.Coins, error) {
 	qualifiedLocks := k.lk.GetLocksLongerThanDurationDenom(ctx, gauge.DistributeTo.Denom, gauge.DistributeTo.Duration)
 
@@ -425,7 +432,7 @@ func (k Keeper) distributeSyntheticInternal(
 		sortedAndTrimmedQualifiedLocks[v.index] = &v.lock
 	}
 
-	return k.distributeInternal(ctx, gauge, sortedAndTrimmedQualifiedLocks, distrInfo)
+	return k.distributeInternal(ctx, gauge, sortedAndTrimmedQualifiedLocks, distrInfo, minDistrValueCache)
 }
 
 // syncGroupWeights updates the individual and total weights of the group records based on the splitting policy.
@@ -454,7 +461,7 @@ func (k Keeper) syncGroupWeights(ctx sdk.Context, group types.Group) error {
 // calculateGroupWeights calculates the updated weights of the group records based on the pool volumes.
 // It returns the updated group and an error if any. It does not mutate the passed in object.
 func (k Keeper) calculateGroupWeights(ctx sdk.Context, group types.Group) (types.Group, error) {
-	totalWeight := sdk.ZeroInt()
+	totalWeight := zeroInt
 
 	// We operate on a deep copy of the given group because we expect to handle specific errors quietly
 	// and want to avoid the scenario where the original group gauge is partially mutated in such cases.
@@ -611,10 +618,14 @@ func (k Keeper) getNoLockGaugeUptime(ctx sdk.Context, gauge types.Gauge, poolId
 //
 // CONTRACT: gauge passed in as argument must be an active gauge.
 func (k Keeper) distributeInternal(
-	ctx sdk.Context, gauge types.Gauge, locks []*lockuptypes.PeriodLock, distrInfo *distributionInfo,
+	ctx sdk.Context, gauge types.Gauge, locks []*lockuptypes.PeriodLock, distrInfo *distributionInfo, minDistrValueCache *DistributionValueCache,
 ) (sdk.Coins, error) {
 	totalDistrCoins := sdk.NewCoins()
 
+	// Retrieve the min value for distribution.
+	// If any distribution amount is valued less than what the param is set, it will be skipped.
+	minValueForDistr := k.GetParams(ctx).MinValueForDistribution
+
 	remainCoins := gauge.Coins.Sub(gauge.DistributedCoins...)
 
 	// if its a perpetual gauge, we set remaining epochs to 1.
@@ -722,6 +733,58 @@ func (k Keeper) distributeInternal(
 				// which is bounded to an Int. So we can safely skip this.
 
 				amtIntBi.Quo(amtIntBi, lockSumTimesRemainingEpochsBi)
+
+				// Determine if the value to distribute is worth enough in minValueForDistr denom to be distributed.
+				if coin.Denom == minValueForDistr.Denom {
+					// If the denom is the same as the minValueForDistr param, no transformation is needed.
+					if amtInt.LT(minValueForDistr.Amount) {
+						continue
+					}
+				} else {
+					// If the denom is not the minValueForDistr denom, we need to transform the underlying to it.
+					// Check if the denom exists in the cached values
+					value, ok := minDistrValueCache.denomToMinValueMap[coin.Denom]
+					if !ok {
+						// Cache miss, figure out the value and add it to the cache
+						poolId, err := k.prk.GetPoolForDenomPairNoOrder(ctx, minValueForDistr.Denom, coin.Denom)
+						if err != nil {
+							// If the pool denom pair pool route does not exist in protorev, we add a zero value to cache to avoid
+							// querying the pool again.
+							minDistrValueCache.denomToMinValueMap[coin.Denom] = zeroInt
+							continue
+						}
+						swapModule, pool, err := k.pmk.GetPoolModuleAndPool(ctx, poolId)
+						if err != nil {
+							return nil, err
+						}
+
+						minTokenRequiredForDistr, err := swapModule.CalcOutAmtGivenIn(ctx, pool, minValueForDistr, coin.Denom, sdk.ZeroDec())
+						if err != nil {
+							return nil, err
+						}
+
+						// Add min token required for distribution to the cache
+						minDistrValueCache.denomToMinValueMap[coin.Denom] = minTokenRequiredForDistr.Amount
+
+						// Check if the value is worth enough in the token to be distributed.
+						if amtInt.LT(minTokenRequiredForDistr.Amount) {
+							// The value is not worth enough, continue
+							continue
+						}
+					} else {
+						// Cache hit, use the value
+
+						// This route does not exist in protorev so a zero value has been added when a cache miss occurred
+						if value.IsZero() {
+							continue
+						}
+						// Check if the underlying is worth enough in the token to be distributed.
+						if amtInt.LT(value) {
+							continue
+						}
+					}
+				}
+
 				if amtInt.Sign() == 1 {
 					newlyDistributedCoin := sdk.Coin{Denom: coin.Denom, Amount: amtInt}
 					distrCoins = distrCoins.Add(newlyDistributedCoin)
@@ -858,21 +921,29 @@ func (k Keeper) Distribute(ctx sdk.Context, gauges []types.Gauge) (sdk.Coins, er
 	totalDistributedCoins := sdk.NewCoins()
 	scratchSlice := make([]*lockuptypes.PeriodLock, 0, 50000)
 
+	// Instead of re-fetching the minimum value an underlying token must be to meet the minimum
+	// requirement for distribution, we cache the values here.
+	// While this isn't precise as it doesn't account for price impact, it is good enough for the sole
+	// purpose of determining if we should distribute the token or not.
+	minDistrValueCache := &DistributionValueCache{
+		denomToMinValueMap: make(map[string]osmomath.Int),
+	}
+
 	for _, gauge := range gauges {
 		var gaugeDistributedCoins sdk.Coins
 		filteredLocks := k.getDistributeToBaseLocks(ctx, gauge, locksByDenomCache, &scratchSlice)
 		// send based on synthetic lockup coins if it's distributing to synthetic lockups
 		var err error
 		if lockuptypes.IsSyntheticDenom(gauge.DistributeTo.Denom) {
 			ctx.Logger().Debug("distributeSyntheticInternal, gauge id %d, %d", "module", types.ModuleName, "gaugeId", gauge.Id, "height", ctx.BlockHeight())
-			gaugeDistributedCoins, err = k.distributeSyntheticInternal(ctx, gauge, filteredLocks, &distrInfo)
+			gaugeDistributedCoins, err = k.distributeSyntheticInternal(ctx, gauge, filteredLocks, &distrInfo, minDistrValueCache)
 		} else {
 			// Do not distribute if LockQueryType = Group, because if we distribute here we will be double distributing.
 			if gauge.DistributeTo.LockQueryType == lockuptypes.ByGroup {
 				continue
 			}
 
-			gaugeDistributedCoins, err = k.distributeInternal(ctx, gauge, filteredLocks, &distrInfo)
+			gaugeDistributedCoins, err = k.distributeInternal(ctx, gauge, filteredLocks, &distrInfo, minDistrValueCache)
 		}
 		if err != nil {
 			return nil, err