fix: increase nonce in ante handler for contract creation tx (#809)

Closes: #808
Solution:
- move nonce increment to ante handler
- revert nonce increment in apply message

build(deps): bump github.com/spf13/viper from 1.9.0 to 1.10.0 (#833)

Bumps [github.com/spf13/viper](https://github.com/spf13/viper) from 1.9.0 to 1.10.0.
- [Release notes](https://github.com/spf13/viper/releases)
- [Commits](https://github.com/spf13/viper/compare/v1.9.0...v1.10.0)

---
updated-dependencies:
- dependency-name: github.com/spf13/viper
  dependency-type: direct:production
  update-type: version-update:semver-minor
...

Signed-off-by: dependabot[bot] <support@github.com>

Co-authored-by: dependabot[bot] <49699333+dependabot[bot]@users.noreply.github.com>

fix: remove unused code (#834)

Co-authored-by: Marko Baricevic <markobaricevic3778@gmail.com>
Co-authored-by: Federico Kunze Küllmer <31522760+fedekunze@users.noreply.github.com>

rm

rm pkg

Co-authored-by: Federico Kunze Küllmer <31522760+fedekunze@users.noreply.github.com>

CHANGELOG.md

@@ -42,6 +42,7 @@ Ref: https://keepachangelog.com/en/1.0.0/
 - (evm) [tharsis#840](https://github.com/tharsis/ethermint/pull/840) Store empty topics as empty array rather than nil.
 - (feemarket) [tharsis#822](https://github.com/tharsis/ethermint/pull/822) Update EIP1559 base fee in `BeginBlock`.
 - (evm) [tharsis#817](https://github.com/tharsis/ethermint/pull/817) Use `effectiveGasPrice` in ante handler, add `effectiveGasPrice` to tx receipt.
+- (evm) [tharsis#808](https://github.com/tharsis/ethermint/issues/808) increase nonce in ante handler for contract creation transaction.
 
 ### Improvements
 

app/ante/ante_test.go

@@ -60,7 +60,7 @@ func (suite AnteTestSuite) TestAnteHandler() {
 			func() sdk.Tx {
 				signedContractTx := evmtypes.NewTxContract(
 					suite.app.EvmKeeper.ChainID(),
-					1,
+					2,
 					big.NewInt(10),
 					100000,
 					big.NewInt(150),
@@ -81,7 +81,7 @@ func (suite AnteTestSuite) TestAnteHandler() {
 			func() sdk.Tx {
 				signedContractTx := evmtypes.NewTxContract(
 					suite.app.EvmKeeper.ChainID(),
-					1,
+					3,
 					big.NewInt(10),
 					100000,
 					big.NewInt(150),
@@ -102,7 +102,7 @@ func (suite AnteTestSuite) TestAnteHandler() {
 			func() sdk.Tx {
 				signedTx := evmtypes.NewTx(
 					suite.app.EvmKeeper.ChainID(),
-					1,
+					4,
 					&to,
 					big.NewInt(10),
 					100000,
@@ -124,7 +124,7 @@ func (suite AnteTestSuite) TestAnteHandler() {
 			func() sdk.Tx {
 				signedTx := evmtypes.NewTx(
 					suite.app.EvmKeeper.ChainID(),
-					2,
+					5,
 					&to,
 					big.NewInt(10),
 					100000,
@@ -349,7 +349,7 @@ func (suite AnteTestSuite) TestAnteHandlerWithDynamicTxFee() {
 				signedContractTx :=
 					evmtypes.NewTxContract(
 						suite.app.EvmKeeper.ChainID(),
-						1,
+						2,
 						big.NewInt(10),
 						100000,
 						nil,
@@ -371,7 +371,7 @@ func (suite AnteTestSuite) TestAnteHandlerWithDynamicTxFee() {
 				signedContractTx :=
 					evmtypes.NewTxContract(
 						suite.app.EvmKeeper.ChainID(),
-						1,
+						3,
 						big.NewInt(10),
 						100000,
 						nil,
@@ -393,7 +393,7 @@ func (suite AnteTestSuite) TestAnteHandlerWithDynamicTxFee() {
 				signedTx :=
 					evmtypes.NewTx(
 						suite.app.EvmKeeper.ChainID(),
-						1,
+						4,
 						&to,
 						big.NewInt(10),
 						100000,
@@ -416,7 +416,7 @@ func (suite AnteTestSuite) TestAnteHandlerWithDynamicTxFee() {
 				signedTx :=
 					evmtypes.NewTx(
 						suite.app.EvmKeeper.ChainID(),
-						2,
+						5,
 						&to,
 						big.NewInt(10),
 						100000,

app/ante/eth.go

@@ -402,24 +402,6 @@ func NewEthIncrementSenderSequenceDecorator(ak evmtypes.AccountKeeper) EthIncrem
 // this AnteHandler decorator.
 func (issd EthIncrementSenderSequenceDecorator) AnteHandle(ctx sdk.Context, tx sdk.Tx, simulate bool, next sdk.AnteHandler) (sdk.Context, error) {
 	for _, msg := range tx.GetMsgs() {
-		msgEthTx, ok := msg.(*evmtypes.MsgEthereumTx)
-		if !ok {
-			return ctx, sdkerrors.Wrapf(sdkerrors.ErrUnknownRequest, "invalid transaction type %T, expected %T", tx, (*evmtypes.MsgEthereumTx)(nil))
-		}
-
-		txData, err := evmtypes.UnpackTxData(msgEthTx.Data)
-		if err != nil {
-			return ctx, sdkerrors.Wrap(err, "failed to unpack tx data")
-		}
-
-		// NOTE: on contract creation, the nonce is incremented within the EVM Create function during tx execution
-		// and not previous to the state transition ¯\_(ツ)_/¯
-		if txData.GetTo() == nil {
-			// contract creation, don't increment sequence on AnteHandler but on tx execution
-			// continue to the next item
-			continue
-		}
-
 		// increment sequence of all signers
 		for _, addr := range msg.GetSigners() {
 			acc := issd.ak.GetAccount(ctx, addr)
@@ -439,7 +421,6 @@ func (issd EthIncrementSenderSequenceDecorator) AnteHandle(ctx sdk.Context, tx s
 		}
 	}
 
-	// set the original gas meter
 	return next(ctx, tx, simulate)
 }
 

app/ante/eth_test.go

@@ -382,15 +382,18 @@ func (suite AnteTestSuite) TestEthIncrementSenderSequenceDecorator() {
 
 	contract := evmtypes.NewTxContract(suite.app.EvmKeeper.ChainID(), 0, big.NewInt(10), 1000, big.NewInt(1), nil, nil, nil, nil)
 	contract.From = addr.Hex()
+	err := contract.Sign(suite.ethSigner, tests.NewSigner(privKey))
+	suite.Require().NoError(err)
 
 	to := tests.GenerateAddress()
 	tx := evmtypes.NewTx(suite.app.EvmKeeper.ChainID(), 0, &to, big.NewInt(10), 1000, big.NewInt(1), nil, nil, nil, nil)
 	tx.From = addr.Hex()
-
+	err = tx.Sign(suite.ethSigner, tests.NewSigner(privKey))
-	err := contract.Sign(suite.ethSigner, tests.NewSigner(privKey))
 	suite.Require().NoError(err)
 
-	err = tx.Sign(suite.ethSigner, tests.NewSigner(privKey))
+	tx2 := evmtypes.NewTx(suite.app.EvmKeeper.ChainID(), 1, &to, big.NewInt(10), 1000, big.NewInt(1), nil, nil, nil, nil)
+	tx2.From = addr.Hex()
+	err = tx2.Sign(suite.ethSigner, tests.NewSigner(privKey))
 	suite.Require().NoError(err)
 
 	testCases := []struct {
@@ -404,7 +407,7 @@ func (suite AnteTestSuite) TestEthIncrementSenderSequenceDecorator() {
 			"invalid transaction type",
 			&invalidTx{},
 			func() {},
-			false, false,
+			false, true,
 		},
 		{
 			"no signers",
@@ -429,7 +432,7 @@ func (suite AnteTestSuite) TestEthIncrementSenderSequenceDecorator() {
 		},
 		{
 			"success - call",
-			tx,
+			tx2,
 			func() {},
 			true, false,
 		},
@@ -456,11 +459,7 @@ func (suite AnteTestSuite) TestEthIncrementSenderSequenceDecorator() {
 				suite.Require().NoError(err)
 
 				nonce := suite.app.EvmKeeper.GetNonce(addr)
-				if txData.GetTo() == nil {
-					suite.Require().Equal(txData.GetNonce(), nonce)
-				} else {
 				suite.Require().Equal(txData.GetNonce()+1, nonce)
-				}
 			} else {
 				suite.Require().Error(err)
 			}

x/evm/handler_test.go

@@ -1,6 +1,7 @@
 package evm_test
 
 import (
+	"errors"
 	"math/big"
 	"testing"
 	"time"
@@ -165,6 +166,12 @@ func (suite *EvmTestSuite) SetupTest() {
 	suite.DoSetupTest(suite.T())
 }
 
+func (suite *EvmTestSuite) SignTx(tx *types.MsgEthereumTx) {
+	tx.From = suite.from.String()
+	err := tx.Sign(suite.ethSigner, suite.signer)
+	suite.Require().NoError(err)
+}
+
 func TestEvmTestSuite(t *testing.T) {
 	suite.Run(t, new(EvmTestSuite))
 }
@@ -182,11 +189,7 @@ func (suite *EvmTestSuite) TestHandleMsgEthereumTx() {
 			func() {
 				to := common.BytesToAddress(suite.to)
 				tx = types.NewTx(suite.chainID, 0, &to, big.NewInt(100), 10_000_000, big.NewInt(10000), nil, nil, nil, nil)
-				tx.From = suite.from.String()
+				suite.SignTx(tx)
-
-				// sign transaction
-				err := tx.Sign(suite.ethSigner, suite.signer)
-				suite.Require().NoError(err)
 			},
 			true,
 		},
@@ -194,10 +197,7 @@ func (suite *EvmTestSuite) TestHandleMsgEthereumTx() {
 			"insufficient balance",
 			func() {
 				tx = types.NewTxContract(suite.chainID, 0, big.NewInt(100), 0, big.NewInt(10000), nil, nil, nil, nil)
-				tx.From = suite.from.Hex()
+				suite.SignTx(tx)
-				// sign transaction
-				err := tx.Sign(suite.ethSigner, suite.signer)
-				suite.Require().NoError(err)
 			},
 			false,
 		},
@@ -269,10 +269,7 @@ func (suite *EvmTestSuite) TestHandlerLogs() {
 
 	bytecode := common.FromHex("0x6080604052348015600f57600080fd5b5060117f775a94827b8fd9b519d36cd827093c664f93347070a554f65e4a6f56cd73889860405160405180910390a2603580604b6000396000f3fe6080604052600080fdfea165627a7a723058206cab665f0f557620554bb45adf266708d2bd349b8a4314bdff205ee8440e3c240029")
 	tx := types.NewTx(suite.chainID, 1, nil, big.NewInt(0), gasLimit, gasPrice, nil, nil, bytecode, nil)
-	tx.From = suite.from.String()
+	suite.SignTx(tx)
-
-	err := tx.Sign(suite.ethSigner, suite.signer)
-	suite.Require().NoError(err)
 
 	result, err := suite.handler(suite.ctx, tx)
 	suite.Require().NoError(err, "failed to handle eth tx msg")
@@ -357,10 +354,7 @@ func (suite *EvmTestSuite) TestDeployAndCallContract() {
 
 	bytecode := common.FromHex("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")
 	tx := types.NewTx(suite.chainID, 1, nil, big.NewInt(0), gasLimit, gasPrice, nil, nil, bytecode, nil)
-	tx.From = suite.from.String()
+	suite.SignTx(tx)
-
-	err := tx.Sign(suite.ethSigner, suite.signer)
-	suite.Require().NoError(err)
 
 	result, err := suite.handler(suite.ctx, tx)
 	suite.Require().NoError(err, "failed to handle eth tx msg")
@@ -379,10 +373,7 @@ func (suite *EvmTestSuite) TestDeployAndCallContract() {
 	storeAddr := "0xa6f9dae10000000000000000000000006a82e4a67715c8412a9114fbd2cbaefbc8181424"
 	bytecode = common.FromHex(storeAddr)
 	tx = types.NewTx(suite.chainID, 2, &receiver, big.NewInt(0), gasLimit, gasPrice, nil, nil, bytecode, nil)
-	tx.From = suite.from.String()
+	suite.SignTx(tx)
-
-	err = tx.Sign(suite.ethSigner, suite.signer)
-	suite.Require().NoError(err)
 
 	_, err = suite.handler(suite.ctx, tx)
 	suite.Require().NoError(err, "failed to handle eth tx msg")
@@ -394,9 +385,7 @@ func (suite *EvmTestSuite) TestDeployAndCallContract() {
 	// query - getOwner
 	bytecode = common.FromHex("0x893d20e8")
 	tx = types.NewTx(suite.chainID, 2, &receiver, big.NewInt(0), gasLimit, gasPrice, nil, nil, bytecode, nil)
-	tx.From = suite.from.String()
+	suite.SignTx(tx)
-	err = tx.Sign(suite.ethSigner, suite.signer)
-	suite.Require().NoError(err)
 
 	_, err = suite.handler(suite.ctx, tx)
 	suite.Require().NoError(err, "failed to handle eth tx msg")
@@ -416,9 +405,7 @@ func (suite *EvmTestSuite) TestSendTransaction() {
 
 	// send simple value transfer with gasLimit=21000
 	tx := types.NewTx(suite.chainID, 1, &common.Address{0x1}, big.NewInt(1), gasLimit, gasPrice, nil, nil, nil, nil)
-	tx.From = suite.from.String()
+	suite.SignTx(tx)
-	err := tx.Sign(suite.ethSigner, suite.signer)
-	suite.Require().NoError(err)
 
 	result, err := suite.handler(suite.ctx, tx)
 	suite.Require().NoError(err)
@@ -487,10 +474,7 @@ func (suite *EvmTestSuite) TestOutOfGasWhenDeployContract() {
 
 	bytecode := common.FromHex("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")
 	tx := types.NewTx(suite.chainID, 1, nil, big.NewInt(0), gasLimit, gasPrice, nil, nil, bytecode, nil)
-	tx.From = suite.from.String()
+	suite.SignTx(tx)
-
-	err := tx.Sign(suite.ethSigner, suite.signer)
-	suite.Require().NoError(err)
 
 	defer func() {
 		if r := recover(); r != nil {
@@ -511,10 +495,7 @@ func (suite *EvmTestSuite) TestErrorWhenDeployContract() {
 	bytecode := common.FromHex("0xa6f9dae10000000000000000000000006a82e4a67715c8412a9114fbd2cbaefbc8181424")
 
 	tx := types.NewTx(suite.chainID, 1, nil, big.NewInt(0), gasLimit, gasPrice, nil, nil, bytecode, nil)
-	tx.From = suite.from.String()
+	suite.SignTx(tx)
-
-	err := tx.Sign(suite.ethSigner, suite.signer)
-	suite.Require().NoError(err)
 
 	result, _ := suite.handler(suite.ctx, tx)
 	var res types.MsgEthereumTxResponse
@@ -529,7 +510,7 @@ func (suite *EvmTestSuite) TestErrorWhenDeployContract() {
 func (suite *EvmTestSuite) deployERC20Contract() common.Address {
 	k := suite.app.EvmKeeper
 	nonce := k.GetNonce(suite.from)
-	ctorArgs, err := types.ERC20Contract.ABI.Pack("", suite.from, big.NewInt(0))
+	ctorArgs, err := types.ERC20Contract.ABI.Pack("", suite.from, big.NewInt(10000000000))
 	suite.Require().NoError(err)
 	msg := ethtypes.NewMessage(
 		suite.from,
@@ -550,38 +531,66 @@ func (suite *EvmTestSuite) deployERC20Contract() common.Address {
 	return crypto.CreateAddress(suite.from, nonce)
 }
 
-// TestGasRefundWhenReverted check that when transaction reverted, gas refund should still work.
+// TestERC20TransferReverted checks:
-func (suite *EvmTestSuite) TestGasRefundWhenReverted() {
+// - when transaction reverted, gas refund works.
+// - when transaction reverted, nonce is still increased.
+func (suite *EvmTestSuite) TestERC20TransferReverted() {
+	intrinsicGas := uint64(21572)
+	// test different hooks scenarios
+	testCases := []struct {
+		msg      string
+		gasLimit uint64
+		hooks    types.EvmHooks
+		expErr   string
+	}{
+		{
+			"no hooks",
+			intrinsicGas, // enough for intrinsicGas, but not enough for execution
+			nil,
+			"out of gas",
+		},
+		{
+			"success hooks",
+			intrinsicGas, // enough for intrinsicGas, but not enough for execution
+			&DummyHook{},
+			"out of gas",
+		},
+		{
+			"failure hooks",
+			1000000, // enough gas limit, but hooks fails.
+			&FailureHook{},
+			"failed to execute post processing",
+		},
+	}
+
+	for _, tc := range testCases {
+		suite.Run(tc.msg, func() {
 			suite.SetupTest()
 			k := suite.app.EvmKeeper
-
+			k.SetHooks(tc.hooks)
-	// the bug only reproduce when there are hooks
-	k.SetHooks(&DummyHook{})
 
 			// add some fund to pay gas fee
 			k.AddBalance(suite.from, big.NewInt(10000000000))
 
 			contract := suite.deployERC20Contract()
 
-	// the call will fail because no balance
+			data, err := types.ERC20Contract.ABI.Pack("transfer", suite.from, big.NewInt(10))
-	data, err := types.ERC20Contract.ABI.Pack("transfer", common.BigToAddress(big.NewInt(1)), big.NewInt(10))
 			suite.Require().NoError(err)
 
+			nonce := k.GetNonce(suite.from)
 			tx := types.NewTx(
 				suite.chainID,
-		k.GetNonce(suite.from),
+				nonce,
 				&contract,
 				big.NewInt(0),
-		41000,
+				tc.gasLimit,
 				big.NewInt(1),
 				nil,
 				nil,
 				data,
 				nil,
 			)
-	tx.From = suite.from.String()
+			suite.SignTx(tx)
-	err = tx.Sign(suite.ethSigner, suite.signer)
-	suite.Require().NoError(err)
 
 			before := k.GetBalance(suite.from)
 
@@ -592,13 +601,78 @@ func (suite *EvmTestSuite) TestGasRefundWhenReverted() {
 
 			res, err := k.EthereumTx(sdk.WrapSDKContext(suite.ctx), tx)
 			suite.Require().NoError(err)
+
 			suite.Require().True(res.Failed())
+			suite.Require().Equal(tc.expErr, res.VmError)
 
 			after := k.GetBalance(suite.from)
 
-	suite.Require().Equal(uint64(23861), res.GasUsed)
+			if tc.expErr == "out of gas" {
-	// check gas refund works
+				suite.Require().Equal(tc.gasLimit, res.GasUsed)
-	suite.Require().Equal(big.NewInt(23861), new(big.Int).Sub(before, after))
+			} else {
+				suite.Require().Greater(tc.gasLimit, res.GasUsed)
+			}
+
+			// check gas refund works: only deducted fee for gas used, rather than gas limit.
+			suite.Require().Equal(big.NewInt(int64(res.GasUsed)), new(big.Int).Sub(before, after))
+
+			// nonce should not be increased.
+			suite.Require().Equal(nonce, k.GetNonce(suite.from))
+		})
+	}
+}
+
+func (suite *EvmTestSuite) TestContractDeploymentRevert() {
+	intrinsicGas := uint64(134180)
+	testCases := []struct {
+		msg      string
+		gasLimit uint64
+		hooks    types.EvmHooks
+	}{
+		{
+			"no hooks",
+			intrinsicGas,
+			nil,
+		},
+		{
+			"success hooks",
+			intrinsicGas,
+			&DummyHook{},
+		},
+	}
+
+	for _, tc := range testCases {
+		suite.Run(tc.msg, func() {
+			suite.SetupTest()
+			k := suite.app.EvmKeeper
+
+			// test with different hooks scenarios
+			k.SetHooks(tc.hooks)
+
+			nonce := k.GetNonce(suite.from)
+			ctorArgs, err := types.ERC20Contract.ABI.Pack("", suite.from, big.NewInt(0))
+			suite.Require().NoError(err)
+
+			tx := types.NewTx(
+				nil,
+				nonce,
+				nil, // to
+				nil, // amount
+				tc.gasLimit,
+				nil, nil, nil,
+				append(types.ERC20Contract.Bin, ctorArgs...),
+				nil,
+			)
+			suite.SignTx(tx)
+
+			rsp, err := k.EthereumTx(sdk.WrapSDKContext(suite.ctx), tx)
+			suite.Require().NoError(err)
+			suite.Require().True(rsp.Failed())
+
+			// nonce don't increase, it's increased in ante handler.
+			suite.Require().Equal(nonce, k.GetNonce(suite.from))
+		})
+	}
 }
 
 // DummyHook implements EvmHooks interface
@@ -607,3 +681,10 @@ type DummyHook struct{}
 func (dh *DummyHook) PostTxProcessing(ctx sdk.Context, txHash common.Hash, logs []*ethtypes.Log) error {
 	return nil
 }
+
+// FailureHook implements EvmHooks interface
+type FailureHook struct{}
+
+func (dh *FailureHook) PostTxProcessing(ctx sdk.Context, txHash common.Hash, logs []*ethtypes.Log) error {
+	return errors.New("mock error")
+}

x/evm/keeper/grpc_query_test.go

@@ -678,6 +678,8 @@ func (suite *KeeperTestSuite) TestTraceTx() {
 			malleate: func() {
 				txIndex = 1
 				traceConfig = nil
+				// increase nonce to avoid address collision
+				suite.app.EvmKeeper.SetNonce(suite.address, suite.app.EvmKeeper.GetNonce(suite.address)+1)
 
 				contractAddr := suite.DeployTestContract(suite.T(), suite.address, sdk.NewIntWithDecimal(1000, 18).BigInt())
 				suite.Commit()
@@ -803,6 +805,8 @@ func (suite *KeeperTestSuite) TestTraceBlock() {
 			msg: "tracer with multiple transactions",
 			malleate: func() {
 				traceConfig = nil
+				// increase nonce to avoid address collision
+				suite.app.EvmKeeper.SetNonce(suite.address, suite.app.EvmKeeper.GetNonce(suite.address)+1)
 				contractAddr := suite.DeployTestContract(suite.T(), suite.address, sdk.NewIntWithDecimal(1000, 18).BigInt())
 				suite.Commit()
 				// create multiple transactions in the same block

x/evm/keeper/state_transition.go

@@ -343,7 +343,10 @@ func (k *Keeper) ApplyMessageWithConfig(msg core.Message, tracer vm.Tracer, comm
 	}
 
 	if contractCreation {
+		nonce := k.GetNonce(sender.Address())
 		ret, _, leftoverGas, vmErr = evm.Create(sender, msg.Data(), leftoverGas, msg.Value())
+		// revert nonce increment, because it's increased in ante handler
+		k.SetNonce(sender.Address(), nonce)
 	} else {
 		ret, leftoverGas, vmErr = evm.Call(sender, *msg.To(), msg.Data(), leftoverGas, msg.Value())
 	}