Osmosis Testnet IBC + LP

This document provides instructions on how to create IBC connection from the manifest chain to Osmosis Testnet 5 as well as how to create a Liquidity Pool.

Requirements

Manifest manifestd binary
Osmosis osmosisd binary
Manifest node with public endpoints
Manifest relayer account funded with umfx
Osmosis relayer account funded with uosmo
Hermes relayer binary

Install Hermes v1.9.0

$ wget https://github.com/informalsystems/hermes/releases/download/v1.9.0/hermes-v1.9.0-x86_64-unknown-linux-gnu.tar.gz
$ tar zxvf https://github.com/informalsystems/hermes/releases/download/v1.9.0/hermes-v1.9.0-x86_64-unknown-linux-gnu.tar.gz
$ sudo mv hermes /usr/local/bin
$ hermes version
hermes 1.9.0+a026d66

Configure Hermes

$ mkdir ~/.hermes
$ touch ~/.hermes/config.toml

Copy the following content in ~/.hermes/config.toml

[global]
log_level = 'info'

[mode]
[mode.clients]
enabled = true
refresh = true
misbehaviour = true

[mode.connections]
enabled = true

[mode.channels]
enabled = true

[mode.packets]
enabled = true
clear_interval = 100
clear_on_start = true
tx_confirmation = false
auto_register_counterparty_payee = false

[rest]
enabled = false
host = '127.0.0.1'
port = 3000

[telemetry]
enabled = false
host = '127.0.0.1'
port = 3001

[telemetry.buckets]

[tracing_server]
enabled = false
port = 5555

[[chains]]
id = 'osmo-test-5'
ccv_consumer_chain = false
rpc_addr = 'https://rpc.osmotest5.osmosis.zone'
grpc_addr = 'https://grpc.osmotest5.osmosis.zone'
event_source = { mode = 'push', url = 'ws://rpc.osmotest5.osmosis.zone/websocket', batch_delay = '500ms' }
rpc_timeout = '20s'
trusted_node = false
account_prefix = 'osmo'
key_name = 'keyosmosis'
address_type = { derivation = 'cosmos' }
store_prefix = 'ibc'
default_gas = 100000
max_gas = 4000000
gas_price = { price = 0.0026, denom = 'uosmo' }  # Osmosis Tesnet sane default gas price
gas_multiplier = 1.6
dynamic_gas_price = { enabled = false, multiplier = 1.6, max = 0.6 }
max_msg_num = 30
max_tx_size = 2097152
query_packets_chunk_size = 50
clock_drift = '5s'
max_block_time = '30s'
trusting_period = '4days'
client_refresh_rate = '1/3'
trust_threshold = '2/3'
memo_prefix = ''

[[chains]]
id = '[MANIFEST_CHAIN_ID]'  # The ID used in the example is `manifest-test-1`
ccv_consumer_chain = false
rpc_addr = '[MANIFEST_RPC_ENDPOINT]'
grpc_addr = '[MANIFEST_gRPC_ENDPOINT]'
event_source = { mode = 'push', url = 'ws://[MANIFEST_RPC_ENDPOINT]/websocket', batch_delay = '500ms' }
rpc_timeout = '20s'
trusted_node = false
account_prefix = 'manifest'
key_name = 'keymanifest'
address_type = { derivation = 'cosmos' }
store_prefix = 'ibc'
default_gas = 100000
max_gas = 4000000
gas_price = { price = 0.0011, denom = 'umfx' }  # [MANIFEST_GAS_PRICE].
gas_multiplier = 1.6
dynamic_gas_price = { enabled = false, multiplier = 1.6, max = 0.6 }
max_msg_num = 30
max_tx_size = 2097152
query_packets_chunk_size = 50
clock_drift = '5s'
max_block_time = '30s'
trusting_period = '14days'
client_refresh_rate = '1/3'
trust_threshold = '2/3'
memo_prefix = ''

where [MANIFEST_CHAIN_ID] is the chain ID of the Manifest network, [MANIFEST_RPC_ENDPOINT] is the network RPC endpoint, [MANIFEST_gRPC_ENDPOINT] is the network gRPC endpoint and [MANIFEST_GAS_PRICE] is the network gas price, e.g., 0.0011.

Add keys to Hermes

# Add the Manifest relaying account key
# The `--key-name` must match the `key_name` entry from the `config.toml`
# `[MANIFEST_CHAIN_ID]` is the chain ID of the Manifest network
# The `manifest-icb` contains the mnemonic words of the key
hermes keys add --key-name keymanifest --chain [MANIFEST_CHAIN_ID] --mnemonic-file manifest-ibc

# Add the Osmosis relaying account key
# The `--key-name` must match the `key_name` entry from the `config.toml`
# The `osmosis-icb` contains the mnemonic words of the key
hermes keys add --key-name keyosmosis --chain osmo-test-5 --mnemonic-file osmosis-ibc

Run Hermes health-check. Disregard the Osmosis Testnet WARNING. Note that Hermes will also print a warning if you set your network gas price to 0.0. Disregard if this was intended.

$ hermes health-check
INFO ThreadId(01) using default configuration from '/home/debian/.hermes/config.toml'
INFO ThreadId(01) running Hermes v1.9.0+a026d66
INFO ThreadId(01) health_check{chain=osmo-test-5}: performing health check...
WARN ThreadId(05) health_check{chain=osmo-test-5}: health check failed for chain 'osmo-test-5'
WARN ThreadId(05) health_check{chain=osmo-test-5}: reason: transaction indexing for chain 'osmo-test-5' is disabled (`node_info.other.tx_index` is off)
WARN ThreadId(05) health_check{chain=osmo-test-5}: some Hermes features may not work in this mode!
WARN ThreadId(01) health_check{chain=osmo-test-5}: chain is not healthy
INFO ThreadId(01) health_check{chain=manifest-test-1}: performing health check...
INFO ThreadId(01) health_check{chain=manifest-test-1}: chain is healthy

Start Hermes

$ hermes start
INFO ThreadId(01) using default configuration from '/home/debian/.hermes/config.toml'
INFO ThreadId(01) running Hermes v1.9.0+a026d66
INFO ThreadId(01) telemetry: telemetry disabled
INFO ThreadId(01) rest: REST server disabled
WARN ThreadId(06) health_check{chain=osmo-test-5}: health check failed for chain 'osmo-test-5'
WARN ThreadId(06) health_check{chain=osmo-test-5}: reason: transaction indexing for chain 'osmo-test-5' is disabled (`node_info.other.tx_index` is off)
WARN ThreadId(06) health_check{chain=osmo-test-5}: some Hermes features may not work in this mode!
WARN ThreadId(01) health_check{chain=osmo-test-5}: chain is not healthy: transaction indexing for chain 'osmo-test-5' is disabled (`node_info.other.tx_index` is off)
INFO ThreadId(01) health_check{chain=manifest-test-1}: chain is healthy
INFO ThreadId(01) scan.chain{chain=osmo-test-5}: scanning chain...
INFO ThreadId(01) scan.chain{chain=osmo-test-5}: scanning chain for all clients, connections and channels
INFO ThreadId(01) scan.chain{chain=osmo-test-5}: scanning all clients...
# DISREGARD THE FOLLOWING ERROR, IT WILL STILL WORK
ERROR ThreadId(01) spawn: failed to spawn worker for a chain, reason: query: gRPC call `query_clients` failed with status: status: Internal, message: "protocol error: received message with invalid compression flag: 60 (valid flags are 0 and 1) while receiving response with status: 504 Gateway Timeout", details: [], metadata: MetadataMap { headers: {"server": "nginx", "date": "Tue, 04 Jun 2024 13:51:16 GMT", "content-type": "text/html; charset=utf-8", "content-length": "160"} }

Create a new Hermes connection and channel

$ hermes create channel --a-chain osmo-test-5 --b-chain [MANIFEST_CHAIN_ID] --a-port transfer --b-port transfer --new-client-connection --yes

Verify setup

# Query the Manifest client status
$ hermes query clients --host-chain [MANIFEST_CHAIN_ID]
SUCCESS [
    ClientChain {
        client_id: ClientId(
            "07-tendermint-0",
        ),
        chain_id: ChainId {
            id: "osmo-test-5",
            version: 5,
        },
    },
]

# `07-tendermint-0` is the client ID on the manifest side

# Query the Manifest connection status
$ hermes query connections --chain [MANIFEST_CHAIN_ID]
SUCCESS [
    ConnectionId(
        "connection-0",
    ),
    ConnectionId(
        "connection-localhost",
    ),
]

# `connection-0` is the connection ID on the manifest side

$ hermes query connection end --chain [MANIFEST_CHAIN_ID] --connection connection-0
SUCCESS ConnectionEnd {
    state: Open,
    client_id: ClientId(
        "07-tendermint-0",
    ),
    counterparty: Counterparty {
        client_id: ClientId(
            "07-tendermint-3571",
        ),
        connection_id: Some(
            ConnectionId(
                "connection-3136",
            ),
        ),
        prefix: ibc,
    },
    versions: [
        Version {
            identifier: "1",
            features: [
                "ORDER_ORDERED",
                "ORDER_UNORDERED",
            ],
        },
    ],
    delay_period: 0ns,
}

# `07-tendermint-3571` is the client ID on the osmosis side
# `connection-3136` is the connection ID on the osmosis side

$ hermes query channels --chain [MANIFEST_CHAIN_ID]
SUCCESS [
    PortChannelId {
        channel_id: ChannelId(
            "channel-0",
        ),
        port_id: PortId(
            "transfer",
        ),
    },
]

# `channel-0` is the channel ID on the manifest side

$ hermes query channel end --chain [MANIFEST_CHAIN_ID] --port transfer --channel channel-0
SUCCESS ChannelEnd {
    state: Open(
        NotUpgrading,
    ),
    ordering: Unordered,
    remote: Counterparty {
        port_id: PortId(
            "transfer",
        ),
        channel_id: Some(
            ChannelId(
                "channel-8012",
            ),
        ),
    },
    connection_hops: [
        ConnectionId(
            "connection-0",
        ),
    ],
    version: Version(
        "ics20-1",
    ),
    upgrade_sequence: 0,
}

# `channel-8012` is the channel ID on the osmosis side

At this point we have a working 2-way IBC!

Let's recap the client/connection/channel information. You will need those for the next steps.

Manifest client ID: 07-tendermint-0
Osmosis client ID: 07-tendermint-3571
Manifest connection ID: connection-0
Osmosis connection ID: connection-3136
Manifest channel ID: channel-0
Osmosis channel ID: channel-8012

Transfer some tokens from osmosis to manifest

hermes tx ft-transfer --dst-chain manifest-test-1 --src-chain osmo-test-5 --src-port transfer --src-channel channel-8012 --amount 2 --denom uosmo --timeout-height-offset 1000

Verify tokens were transfered

# Retrieve the [MANIFEST_ADDRESS]
$ hermes keys list --chain [MANIFEST_CHAIN_ID]
SUCCESS 
- keymanifest (manifest13a9kcn6...mmn7ukncg3cll723zz) # The `manifest1...` string is the [MANIFEST_ADDRESS]

# Check the MANIFEST_ADDRESS balance
$ manifestd q bank balances [MANIFEST_ADDRESS]
balances:
- amount: "2"
  denom: ibc/ED07A3391A112B175915CD8FAF43A2DA8E4790EDE12566649D0C2F97716B8518
- amount: "98"
  denom: umfx
pagination:
  total: "2"

where ibc/ED07A3391A112B175915CD8FAF43A2DA8E4790EDE12566649D0C2F97716B8518 is the IBC identifier corresponding to uosmo, as showed by

$ manifestd q ibc-transfer denom-trace ED07A3391A112B175915CD8FAF43A2DA8E4790EDE12566649D0C2F97716B8518
denom_trace:
    base_denom: uosmo
    path: transfer/channel-0

We now have uosmo tokens on the Manifest chain!

Transfer umfx to Osmosis

$ hermes tx ft-transfer --dst-chain osmo-test-5 --src-chain manifest-test-1 --src-port transfer --src-channel channel-0 --amount 2 --denom umfx --timeout-height-offset 1000

Verify tokens were transfered

# Retrieve the [OSMOSIS_ADDRESS]
$ hermes keys list --chain osmo-test-5
SUCCESS 
- keyosmosis (osmo1jtjvlzcq...p6uf7pwa9nua523) # The `osmo1...` string is the [OSMOSIS_ADDRESS]

# Check the OSMOSIS_ADDRESS balance
$ osmosisd q bank balances [OSMOSIS_ADDRESS] --node https://rpc.osmotest5.osmosis.zone:443
balances:
- amount: "2"
  denom: ibc/CEE22D005E967405D7AF1B5E3658B11C75FF240A21F335DD868C6E240330B43D
- amount: "49988442"
  denom: uosmo
pagination:
  next_key: null
  total: "0"

where ibc/CEE22D005E967405D7AF1B5E3658B11C75FF240A21F335DD868C6E240330B43D is the IBC identifier corresponding to umfx. Use https://www.mintscan.io/osmosis-testnet/ and search for your osmo1... address on the Osmosis Testnet to view the transaction detail.

Create the lp.json file with the following liquidity pool confituration
```
{
    "weights": "1ibc/CEE22D005E967405D7AF1B5E3658B11C75FF240A21F335DD868C6E240330B43D,1uosmo",
    "initial-deposit": "1ibc/CEE22D005E967405D7AF1B5E3658B11C75FF240A21F335DD868C6E240330B43D,1uosmo",
    "swap-fee": "0.01",
    "future-governor": "168h"
}
```
where ibc/CEE22D005E967405D7AF1B5E3658B11C75FF240A21F335DD868C6E240330B43D is the IBC identifier corresponding to umfx. This configuration means that 1umfx == 1uosmo.

NOTE: One will need to configure the proper weight on the mainnet following the umfx token launch price. NOTE: The swap fee is also TBD.
Create the liquidity pool
```
# The creator of the LP, here `osmoibc`, will need `uosmo` funds for the pool creation
$ osmosisd tx gamm create-pool --pool-file lp.json --node https://rpc.osmotest5.osmosis.zone:443 --from osmoibc --fees 5000uosmo --chain-id osmo-test-5 --gas 2000000
```
You can retrieve the pool ID using https://www.mintscan.io/osmosis-testnet/. Search for the pool creator address and find the Create Balance Pool transaction from the transaction list. Click on it and then click on Event Logs. Expand the [23] Pool Created box and you should see the Pool Id.

Query the liquidity pool

$ osmosisd q gamm pool [POOL_ID] --node https://rpc.osmotest5.osmosis.zone:443
pool:
  '@type': /osmosis.gamm.v1beta1.Pool
  address: osmo13jlfrqhv3kuexf8trdhamnastzf4vz580c2m4j8n6cvppvsnnn5scqn27d
  future_pool_governor: 168h
  id: "479"
  pool_assets:
  - token:
      amount: "1"
      denom: ibc/CEE22D005E967405D7AF1B5E3658B11C75FF240A21F335DD868C6E240330B43D
    weight: "1073741824"
  - token:
      amount: "1"
      denom: uosmo
    weight: "1073741824"
  pool_params:
    exit_fee: "0.000000000000000000"
    smooth_weight_change_params: null
    swap_fee: "0.010000000000000000"
  total_shares:
    amount: "100000000000000000000"
    denom: gamm/pool/479
  total_weight: "2147483648"

where [POOL_ID] is the ID of the liquidity pool.

fmorency/osmo-ibc-lp.md