Enforce correct parameters version when verifing EOI (#317)

- EOI created delegations parameter version should be the some one for
given block range

CHANGELOG.md

@@ -43,6 +43,8 @@ The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/)
 - [#305](https://github.com/babylonlabs-io/babylon/pull/305) chore: add more error logs to `VerifyInclusionProofAndGetHeight`
 - [#304](https://github.com/babylonlabs-io/babylon/pull/304) Add highest voted height to finality provider
 - [#314](https://github.com/babylonlabs-io/babylon/pull/314) Require exact unbonding time in delegation
+- [#317](https://github.com/babylonlabs-io/babylon/pull/317) Enforce that EOI
+delegations using correct parameters version
 
 ### State Machine Breaking
 

x/btcstaking/keeper/msg_server.go

@@ -345,12 +345,28 @@ func (ms msgServer) AddBTCDelegationInclusionProof(
 		return nil, fmt.Errorf("invalid inclusion proof: %w", err)
 	}
 
-	// 6. set start height and end height and save it to db
+	// 6. Check if parameters used the validate /create the delegation are the same
+	// as the one in the BTC light client
+	_, version, err := ms.GetParamsForBtcHeight(ctx, uint64(timeInfo.StartHeight))
+	if err != nil {
+		return nil, err
+	}
+
+	if btcDel.ParamsVersion != version {
+		return nil, types.ErrParamsVersionMismatch.Wrapf(
+			"params version in BTC delegation: %d, params version at height %d: %d",
+			btcDel.ParamsVersion,
+			timeInfo.StartHeight,
+			version,
+		)
+	}
+
+	// 7. set start height and end height and save it to db
 	btcDel.StartHeight = timeInfo.StartHeight
 	btcDel.EndHeight = timeInfo.EndHeight
 	ms.setBTCDelegation(ctx, btcDel)
 
-	// 7. emit events
+	// 8. emit events
 	stakingTxHash := btcDel.MustGetStakingTxHash()
 
 	newInclusionProofEvent := types.NewInclusionProofEvent(

x/btcstaking/keeper/msg_server_test.go

@@ -387,6 +387,93 @@ func TestProperVersionInDelegation(t *testing.T) {
 	require.Equal(t, uint32(2), actualDel1.ParamsVersion)
 }
 
+func TestRejectActivationOfTheDelegationCreatedWithOldParams(t *testing.T) {
+	r := rand.New(rand.NewSource(time.Now().Unix()))
+	ctrl := gomock.NewController(t)
+	defer ctrl.Finish()
+
+	// mock BTC light client and BTC checkpoint modules
+	btclcKeeper := types.NewMockBTCLightClientKeeper(ctrl)
+	btccKeeper := types.NewMockBtcCheckpointKeeper(ctrl)
+	h := testutil.NewHelper(t, btclcKeeper, btccKeeper)
+
+	// set all parameters
+	covenantSKs, _ := h.GenAndApplyParams(r)
+
+	changeAddress, err := datagen.GenRandomBTCAddress(r, h.Net)
+	require.NoError(t, err)
+
+	// generate and insert new finality provider
+	_, fpPK, _ := h.CreateFinalityProvider(r)
+
+	// create fresh version of params
+	currentParams := h.BTCStakingKeeper.GetParams(h.Ctx)
+	// params will be activate at block height 2
+	currentParams.BtcActivationHeight = currentParams.BtcActivationHeight + 1
+	// Update new params
+	err = h.BTCStakingKeeper.SetParams(h.Ctx, currentParams)
+	require.NoError(t, err)
+
+	// generate and insert new BTC delegation
+	stakingValue := int64(2 * 10e8)
+	delSK, _, err := datagen.GenRandomBTCKeyPair(r)
+	h.NoError(err)
+	stakingTxHash, msgCreateBTCDel, _, headerInfo, inclusionProof, _, err := h.CreateDelegationWithBtcBlockHeight(
+		r,
+		delSK,
+		fpPK,
+		changeAddress.EncodeAddress(),
+		stakingValue,
+		1000,
+		0,
+		0,
+		// use the pre-approval flow
+		true,
+		false,
+		// staking tx will be included in BTC block height 1, which is before the activation of the new params
+		1,
+	)
+	h.NoError(err)
+	require.NotNil(t, headerInfo)
+	require.NotNil(t, inclusionProof)
+
+	// ensure consistency between the msg and the BTC delegation in DB
+	actualDel, err := h.BTCStakingKeeper.GetBTCDelegation(h.Ctx, stakingTxHash)
+	h.NoError(err)
+	require.NotNil(t, actualDel)
+
+	msgs := h.GenerateCovenantSignaturesMessages(r, covenantSKs, msgCreateBTCDel, actualDel)
+	for _, msg := range msgs {
+		_, err = h.MsgServer.AddCovenantSigs(h.Ctx, msg)
+		h.NoError(err)
+	}
+
+	// get updated delegation
+	actualDel, err = h.BTCStakingKeeper.GetBTCDelegation(h.Ctx, stakingTxHash)
+	h.NoError(err)
+	require.NotNil(t, actualDel)
+
+	tipHeight := h.BTCLightClientKeeper.GetTipInfo(h.Ctx).Height
+	checkpointTimeout := h.BTCCheckpointKeeper.GetParams(h.Ctx).CheckpointFinalizationTimeout
+	covenantQuorum := h.BTCStakingKeeper.GetParams(h.Ctx).CovenantQuorum
+
+	status := actualDel.GetStatus(tipHeight, checkpointTimeout, covenantQuorum)
+	require.Equal(t, types.BTCDelegationStatus_VERIFIED, status)
+
+	msg := &types.MsgAddBTCDelegationInclusionProof{
+		StakingTxHash:           stakingTxHash,
+		StakingTxInclusionProof: inclusionProof,
+	}
+
+	// mock BTC header that includes the staking tx
+	h.BTCLightClientKeeper.EXPECT().GetHeaderByHash(gomock.Eq(h.Ctx), gomock.Eq(headerInfo.Header.Hash())).Return(headerInfo, nil).AnyTimes()
+
+	// Call the AddBTCDelegationInclusionProof handler
+	_, err = h.MsgServer.AddBTCDelegationInclusionProof(h.Ctx, msg)
+	h.Error(err)
+	require.ErrorAs(t, err, &types.ErrBTCDelegationNotFound)
+}
+
 func FuzzAddCovenantSigs(f *testing.F) {
 	datagen.AddRandomSeedsToFuzzer(f, 10)
 

x/btcstaking/types/errors.go

@@ -30,4 +30,5 @@ var (
 	ErrFpAlreadyJailed          = errorsmod.Register(ModuleName, 1121, "the finality provider has already been jailed")
 	ErrFpNotJailed              = errorsmod.Register(ModuleName, 1122, "the finality provider is not jailed")
 	ErrDuplicatedCovenantSig    = errorsmod.Register(ModuleName, 1123, "the covenant signature is already submitted")
+	ErrParamsVersionMismatch    = errorsmod.Register(ModuleName, 1124, "the parameters version in the BTC delegation is different from the parameters active at staking transaction inclusion height")
 )