feat: top of block auction and block-sdk integration

CHANGELOG.md

@@ -44,6 +44,7 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 ### State Breaking
 
+* [#7935](https://github.com/osmosis-labs/osmosis/pull/7935) Add block sdk and top of block auction from skip-mev :handshake: .
 * [#8030](https://github.com/osmosis-labs/osmosis/pull/8030) Delete legacy behavior where lockups could not unbond at very small block heights on a testnet.
 
 ### State Compatible

app/ante.go

@@ -9,6 +9,7 @@ import (
 	ibcante "github.com/cosmos/ibc-go/v7/modules/core/ante"
 	ibckeeper "github.com/cosmos/ibc-go/v7/modules/core/keeper"
 
+	"github.com/cosmos/cosmos-sdk/client"
 	servertypes "github.com/cosmos/cosmos-sdk/server/types"
 	sdk "github.com/cosmos/cosmos-sdk/types"
 	ante "github.com/cosmos/cosmos-sdk/x/auth/ante"
@@ -21,8 +22,18 @@ import (
 
 	txfeeskeeper "github.com/osmosis-labs/osmosis/v24/x/txfees/keeper"
 	txfeestypes "github.com/osmosis-labs/osmosis/v24/x/txfees/types"
+	auctionkeeper "github.com/skip-mev/block-sdk/x/auction/keeper"
+
+	auctionante "github.com/skip-mev/block-sdk/x/auction/ante"
 )
 
+// BlockSDKAnteHandlerParams are the parameters necessary to configure the block-sdk antehandlers
+type BlockSDKAnteHandlerParams struct {
+	mevLane       auctionante.MEVLane
+	auctionKeeper auctionkeeper.Keeper
+	txConfig      client.TxConfig
+}
+
 // Link to default ante handler used by cosmos sdk:
 // https://github.com/cosmos/cosmos-sdk/blob/v0.43.0/x/auth/ante/ante.go#L41
 // N.B. There is a sister file called `ante_no_seq.go` that is used for e2e testing.
@@ -39,6 +50,7 @@ func NewAnteHandler(
 	sigGasConsumer ante.SignatureVerificationGasConsumer,
 	signModeHandler signing.SignModeHandler,
 	channelKeeper *ibckeeper.Keeper,
+	blockSDKParams BlockSDKAnteHandlerParams,
 ) sdk.AnteHandler {
 	mempoolFeeOptions := txfeestypes.NewMempoolFeeOptions(appOpts)
 	mempoolFeeDecorator := txfeeskeeper.NewMempoolFeeDecorator(*txFeesKeeper, mempoolFeeOptions)
@@ -66,5 +78,11 @@ func NewAnteHandler(
 		ante.NewSigVerificationDecorator(ak, signModeHandler),
 		ante.NewIncrementSequenceDecorator(ak),
 		ibcante.NewRedundantRelayDecorator(channelKeeper),
+		// auction module antehandler
+		auctionante.NewAuctionDecorator(
+			blockSDKParams.auctionKeeper,
+			blockSDKParams.txConfig.TxEncoder(),
+			blockSDKParams.mevLane,
+		),
 	)
 }

app/ante_no_seq.go

@@ -9,6 +9,7 @@ import (
 	ibcante "github.com/cosmos/ibc-go/v7/modules/core/ante"
 	ibckeeper "github.com/cosmos/ibc-go/v7/modules/core/keeper"
 
+	"github.com/cosmos/cosmos-sdk/client"
 	servertypes "github.com/cosmos/cosmos-sdk/server/types"
 	sdk "github.com/cosmos/cosmos-sdk/types"
 	ante "github.com/cosmos/cosmos-sdk/x/auth/ante"
@@ -21,12 +22,22 @@ import (
 
 	txfeeskeeper "github.com/osmosis-labs/osmosis/v24/x/txfees/keeper"
 	txfeestypes "github.com/osmosis-labs/osmosis/v24/x/txfees/types"
+	auctionkeeper "github.com/skip-mev/block-sdk/x/auction/keeper"
+
+	auctionante "github.com/skip-mev/block-sdk/x/auction/ante"
 )
 
+// BlockSDKAnteHandlerParams are the parameters necessary to configure the block-sdk antehandlers
+type BlockSDKAnteHandlerParams struct {
+	mevLane       auctionante.MEVLane
+	auctionKeeper auctionkeeper.Keeper
+	txConfig      client.TxConfig
+}
+
 // Link to default ante handler used by cosmos sdk:
 // https://github.com/cosmos/cosmos-sdk/blob/v0.43.0/x/auth/ante/ante.go#L41
 // N.B. There is a sister file called `ante_eq.go` that is used for production.
-// Opposite to this, it also chains `IncrementSequenceDecorator` which is not needed for e2e testing but is critical for production.
+// Opposite to this, it also chains `SigVerificationDecorator` which is not needed for e2e testing but is critical for production.
 // If you make a change here, make sure to make the same change in `ante.go`.
 func NewAnteHandler(
 	appOpts servertypes.AppOptions,
@@ -39,6 +50,7 @@ func NewAnteHandler(
 	sigGasConsumer ante.SignatureVerificationGasConsumer,
 	signModeHandler signing.SignModeHandler,
 	channelKeeper *ibckeeper.Keeper,
+	blockSDKParams BlockSDKAnteHandlerParams,
 ) sdk.AnteHandler {
 	mempoolFeeOptions := txfeestypes.NewMempoolFeeOptions(appOpts)
 	mempoolFeeDecorator := txfeeskeeper.NewMempoolFeeDecorator(*txFeesKeeper, mempoolFeeOptions)
@@ -64,7 +76,13 @@ func NewAnteHandler(
 		ante.NewValidateSigCountDecorator(ak),
 		ante.NewSigGasConsumeDecorator(ak, sigGasConsumer),
 		ante.NewSigVerificationDecorator(ak, signModeHandler),
-		// ante.NewIncrementSequenceDecorator(ak),
+		ante.NewIncrementSequenceDecorator(ak),
 		ibcante.NewRedundantRelayDecorator(channelKeeper),
+		// auction module antehandler
+		auctionante.NewAuctionDecorator(
+			blockSDKParams.auctionKeeper,
+			blockSDKParams.txConfig.TxEncoder(),
+			blockSDKParams.mevLane,
+		),
 	)
 }

app/app.go

@@ -10,6 +10,8 @@ import (
 	"time"
 
 	wasmtypes "github.com/CosmWasm/wasmd/x/wasm/types"
+	"github.com/skip-mev/block-sdk/block"
+	"github.com/skip-mev/block-sdk/block/base"
 
 	"github.com/cosmos/cosmos-sdk/x/auth"
 	authsims "github.com/cosmos/cosmos-sdk/x/auth/simulation"
@@ -117,6 +119,9 @@ import (
 	v9 "github.com/osmosis-labs/osmosis/v24/app/upgrades/v9"
 	_ "github.com/osmosis-labs/osmosis/v24/client/docs/statik"
 	"github.com/osmosis-labs/osmosis/v24/x/mint"
+
+	blocksdkabci "github.com/skip-mev/block-sdk/abci"
+	"github.com/skip-mev/block-sdk/abci/checktx"
 )
 
 const appName = "OsmosisApp"
@@ -177,6 +182,8 @@ type OsmosisApp struct {
 	sm           *module.SimulationManager
 	configurator module.Configurator
 	homePath     string
+
+	checkTxHandler checktx.CheckTx
 }
 
 // init sets DefaultNodeHome to default osmosisd install location.
@@ -393,6 +400,20 @@ func NewOsmosisApp(
 
 	app.sm.RegisterStoreDecoders()
 
+	// initialize lanes + mempool
+	mevLane, defaultLane := CreateLanes(app, txConfig)
+
+	// create the mempool
+	lanedMempool, err := block.NewLanedMempool(
+		app.Logger(),
+		[]block.Lane{mevLane, defaultLane},
+	)
+	if err != nil {
+		panic(err)
+	}
+	// set the mempool
+	app.SetMempool(lanedMempool)
+
 	// initialize stores
 	app.MountKVStores(app.GetKVStoreKey())
 	app.MountTransientStores(app.GetTransientStoreKey())
@@ -409,8 +430,57 @@ func NewOsmosisApp(
 		ante.DefaultSigVerificationGasConsumer,
 		encodingConfig.TxConfig.SignModeHandler(),
 		app.IBCKeeper,
+		BlockSDKAnteHandlerParams{
+			mevLane:       mevLane,
+			auctionKeeper: *app.AppKeepers.AuctionKeeper,
+			txConfig:      txConfig,
+		},
+	)
+
+	// update ante-handlers on lanes
+	opt := []base.LaneOption{
+		base.WithAnteHandler(anteHandler),
+	}
+	mevLane.WithOptions(opt...)
+	defaultLane.WithOptions(opt...)
+
+	// ABCI handlers
+	// prepare proposal
+	proposalHandler := blocksdkabci.NewProposalHandler(
+		app.Logger(),
+		txConfig.TxDecoder(),
+		txConfig.TxEncoder(),
+		lanedMempool,
+	)
+
+	// we use the block-sdk's PrepareProposal logic to build blocks
+	app.SetPrepareProposal(proposalHandler.PrepareProposalHandler())
+
+	// we use a no-op ProcessProposal, this way, we accept all proposals in avoidance
+	// of liveness failures due to Prepare / Process inconsistency. In other words,
+	// this ProcessProposal always returns ACCEPT.
+	app.SetProcessProposal(baseapp.NoOpProcessProposal())
+
+	// check-tx
+	mevCheckTxHandler := checktx.NewMEVCheckTxHandler(
+		app,
+		txConfig.TxDecoder(),
+		mevLane,
+		anteHandler,
+		app.BaseApp.CheckTx,
+		app.ChainID(),
+	)
+
+	// wrap checkTxHandler with mempool parity handler
+	parityCheckTx := checktx.NewMempoolParityCheckTx(
+		app.Logger(),
+		lanedMempool,
+		txConfig.TxDecoder(),
+		mevCheckTxHandler.CheckTx(),
 	)
 
+	app.SetCheckTx(parityCheckTx.CheckTx())
+
 	// initialize BaseApp
 	app.SetInitChainer(app.InitChainer)
 	app.SetBeginBlocker(app.BeginBlocker)
@@ -728,6 +798,19 @@ func InitOsmosisAppForTestnet(app *OsmosisApp, newValAddr bytes.HexBytes, newVal
 	return app
 }
 
+// CheckTx will check the transaction with the provided checkTxHandler. We override the default
+// handler so that we can verify bid transactions before they are inserted into the mempool.
+// With the BlockSDK CheckTx, we can verify the bid transaction and all of the bundled transactions
+// before inserting the bid transaction into the mempool.
+func (app *OsmosisApp) CheckTx(req abci.RequestCheckTx) abci.ResponseCheckTx {
+	return app.checkTxHandler(req)
+}
+
+// SetCheckTx sets the checkTxHandler for the app.
+func (app *OsmosisApp) SetCheckTx(handler checktx.CheckTx) {
+	app.checkTxHandler = handler
+}
+
 // MakeCodecs returns the application codec and a legacy Amino codec.
 func MakeCodecs() (codec.Codec, *codec.LegacyAmino) {
 	config := MakeEncodingConfig()

app/keepers/keepers.go

@@ -110,6 +110,9 @@ import (
 	epochskeeper "github.com/osmosis-labs/osmosis/x/epochs/keeper"
 	epochstypes "github.com/osmosis-labs/osmosis/x/epochs/types"
 
+	auctionkeeper "github.com/skip-mev/block-sdk/x/auction/keeper"
+	auctiontypes "github.com/skip-mev/block-sdk/x/auction/types"
+
 	storetypes "github.com/cosmos/cosmos-sdk/store/types"
 )
 
@@ -178,6 +181,9 @@ type AppKeepers struct {
 	HooksICS4Wrapper          ibchooks.ICS4Middleware
 	PacketForwardKeeper       *packetforwardkeeper.Keeper
 
+	// BlockSDK
+	AuctionKeeper *auctionkeeper.Keeper
+
 	// keys to access the substores
 	keys    map[string]*storetypes.KVStoreKey
 	tkeys   map[string]*storetypes.TransientStoreKey
@@ -505,6 +511,18 @@ func (appKeepers *AppKeepers) InitNormalKeepers(
 		appKeepers.LockupKeeper,
 	)
 
+	// initialize the auction keeper
+	auctionKeeper := auctionkeeper.NewKeeper(
+		appCodec,
+		appKeepers.keys[auctiontypes.StoreKey],
+		appKeepers.AccountKeeper,
+		appKeepers.BankKeeper,
+		appKeepers.DistrKeeper,
+		appKeepers.StakingKeeper,
+		authtypes.NewModuleAddress(govtypes.ModuleName).String(),
+	)
+	appKeepers.AuctionKeeper = &auctionKeeper
+
 	appKeepers.ValidatorSetPreferenceKeeper = &validatorSetPreferenceKeeper
 
 	appKeepers.SuperfluidKeeper = superfluidkeeper.NewKeeper(
@@ -751,6 +769,7 @@ func (appKeepers *AppKeepers) initParamsKeeper(appCodec codec.BinaryCodec, legac
 	paramsKeeper.Subspace(cosmwasmpooltypes.ModuleName)
 	paramsKeeper.Subspace(ibchookstypes.ModuleName)
 	paramsKeeper.Subspace(txfeestypes.ModuleName)
+	paramsKeeper.Subspace(auctiontypes.ModuleName)
 
 	return paramsKeeper
 }
@@ -873,5 +892,6 @@ func KVStoreKeys() []string {
 		icqtypes.StoreKey,
 		packetforwardtypes.StoreKey,
 		cosmwasmpooltypes.StoreKey,
+		auctiontypes.StoreKey,
 	}
 }

app/keepers/modules.go

@@ -61,6 +61,7 @@ import (
 	valsetprefmodule "github.com/osmosis-labs/osmosis/v24/x/valset-pref/valpref-module"
 	"github.com/osmosis-labs/osmosis/x/epochs"
 	ibc_hooks "github.com/osmosis-labs/osmosis/x/ibc-hooks"
+	"github.com/skip-mev/block-sdk/x/auction"
 )
 
 // AppModuleBasics returns ModuleBasics for the module BasicManager.
@@ -130,4 +131,5 @@ var AppModuleBasics = []module.AppModuleBasic{
 	packetforward.AppModuleBasic{},
 	cosmwasmpoolmodule.AppModuleBasic{},
 	tendermint.AppModuleBasic{},
+	auction.AppModuleBasic{},
 }

app/lanes.go

@@ -0,0 +1,80 @@
+package app
+
+import (
+	"cosmossdk.io/math"
+	"github.com/cosmos/cosmos-sdk/client"
+
+	signerextraction "github.com/skip-mev/block-sdk/adapters/signer_extraction_adapter"
+	"github.com/skip-mev/block-sdk/block/base"
+	defaultlane "github.com/skip-mev/block-sdk/lanes/base"
+	mevlane "github.com/skip-mev/block-sdk/lanes/mev"
+)
+
+const (
+	maxTxPerMEVLane     = 500  // this is the maximum # of bids that will be held in the app-side in-memory mempool
+	maxTxPerDefaultLane = 3000 // all other txs
+)
+
+var (
+	defaultLaneBlockspacePercentage = math.LegacyMustNewDecFromStr("0.95")
+	mevLaneBlockspacePercentage     = math.LegacyMustNewDecFromStr("0.05")
+)
+
+// CreateLanes walks through the process of creating the lanes for the block sdk. In this function
+// we create three separate lanes - MEV, Free, and Default - and then return them.
+func CreateLanes(app *OsmosisApp, txConfig client.TxConfig) (*mevlane.MEVLane, *base.BaseLane) {
+	// 1. Create the signer extractor. This is used to extract the expected signers from
+	// a transaction. Each lane can have a different signer extractor if needed.
+	signerAdapter := signerextraction.NewDefaultAdapter()
+
+	// 2. Create the configurations for each lane. These configurations determine how many
+	// transactions the lane can store, the maximum block space the lane can consume, and
+	// the signer extractor used to extract the expected signers from a transaction.
+
+	// Create a mev configuration that accepts maxTxPerMEVLane transactions and consumes mevLaneBlockspacePercentage of the
+	// block space.
+	mevConfig := base.LaneConfig{
+		Logger:          app.Logger(),
+		TxEncoder:       txConfig.TxEncoder(),
+		TxDecoder:       txConfig.TxDecoder(),
+		MaxBlockSpace:   mevLaneBlockspacePercentage,
+		SignerExtractor: signerAdapter,
+		MaxTxs:          maxTxPerMEVLane,
+	}
+
+	// Create a default configuration that accepts maxTxPerDefaultLane transactions and consumes defaultLaneBlockspacePercentage of the
+	// block space.
+	defaultConfig := base.LaneConfig{
+		Logger:          app.Logger(),
+		TxEncoder:       txConfig.TxEncoder(),
+		TxDecoder:       txConfig.TxDecoder(),
+		MaxBlockSpace:   defaultLaneBlockspacePercentage,
+		SignerExtractor: signerAdapter,
+		MaxTxs:          maxTxPerDefaultLane,
+	}
+
+	// 3. Create the match handlers for each lane. These match handlers determine whether or not
+	// a transaction belongs in the lane.
+
+	// Create the final match handler for the mev lane.
+	factory := mevlane.NewDefaultAuctionFactory(txConfig.TxDecoder(), signerAdapter)
+	mevMatchHandler := factory.MatchHandler()
+
+	// Create the final match handler for the default lane. I.e this will direct all txs that are
+	// not free nor mev to this lane
+	defaultMatchHandler := base.DefaultMatchHandler()
+
+	// 4. Create the lanes.
+	mevLane := mevlane.NewMEVLane(
+		mevConfig,
+		factory,
+		mevMatchHandler,
+	)
+
+	defaultLane := defaultlane.NewDefaultLane(
+		defaultConfig,
+		defaultMatchHandler,
+	)
+
+	return mevLane, defaultLane
+}