fix ibc-transfer receiving denom bug (#8119)

* fix receiving denom bug

* Update x/ibc/applications/transfer/keeper/relay.go

* add testing sending 2 hops and back one

Co-authored-by: Aleksandr Bezobchuk <alexanderbez@users.noreply.github.com>

x/ibc/applications/transfer/handler_test.go

@@ -21,20 +21,23 @@ type TransferTestSuite struct {
 	// testing chains used for convenience and readability
 	chainA *ibctesting.TestChain
 	chainB *ibctesting.TestChain
+	chainC *ibctesting.TestChain
 }
 
 func (suite *TransferTestSuite) SetupTest() {
-	suite.coordinator = ibctesting.NewCoordinator(suite.T(), 2)
+	suite.coordinator = ibctesting.NewCoordinator(suite.T(), 3)
 	suite.chainA = suite.coordinator.GetChain(ibctesting.GetChainID(0))
 	suite.chainB = suite.coordinator.GetChain(ibctesting.GetChainID(1))
+	suite.chainC = suite.coordinator.GetChain(ibctesting.GetChainID(2))
 }
 
 // constructs a send from chainA to chainB on the established channel/connection
 // and sends the same coin back from chainB to chainA.
 func (suite *TransferTestSuite) TestHandleMsgTransfer() {
+	// setup between chainA and chainB
 	clientA, clientB, connA, connB := suite.coordinator.SetupClientConnections(suite.chainA, suite.chainB, exported.Tendermint)
 	channelA, channelB := suite.coordinator.CreateTransferChannels(suite.chainA, suite.chainB, connA, connB, channeltypes.UNORDERED)
-	originalBalance := suite.chainA.App.BankKeeper.GetBalance(suite.chainA.GetContext(), suite.chainA.SenderAccount.GetAddress(), sdk.DefaultBondDenom)
+	//	originalBalance := suite.chainA.App.BankKeeper.GetBalance(suite.chainA.GetContext(), suite.chainA.SenderAccount.GetAddress(), sdk.DefaultBondDenom)
 	timeoutHeight := clienttypes.NewHeight(0, 110)
 
 	coinToSendToB := sdk.NewCoin(sdk.DefaultBondDenom, sdk.NewInt(100))
@@ -56,35 +59,62 @@ func (suite *TransferTestSuite) TestHandleMsgTransfer() {
 	voucherDenomTrace := types.ParseDenomTrace(types.GetPrefixedDenom(packet.GetDestPort(), packet.GetDestChannel(), sdk.DefaultBondDenom))
 	balance := suite.chainB.App.BankKeeper.GetBalance(suite.chainB.GetContext(), suite.chainB.SenderAccount.GetAddress(), voucherDenomTrace.IBCDenom())
 
-	coinToSendBackToA := types.GetTransferCoin(channelB.PortID, channelB.ID, sdk.DefaultBondDenom, 100)
-	suite.Require().Equal(coinToSendBackToA, balance)
+	coinSentFromAToB := types.GetTransferCoin(channelB.PortID, channelB.ID, sdk.DefaultBondDenom, 100)
+	suite.Require().Equal(coinSentFromAToB, balance)
 
-	// send from chainB back to chainA
-	msg = types.NewMsgTransfer(channelB.PortID, channelB.ID, coinToSendBackToA, suite.chainB.SenderAccount.GetAddress(), suite.chainA.SenderAccount.GetAddress().String(), timeoutHeight, 0)
+	// setup between chainB to chainC
+	clientOnBForC, clientOnCForB, connOnBForC, connOnCForB := suite.coordinator.SetupClientConnections(suite.chainB, suite.chainC, exported.Tendermint)
+	channelOnBForC, channelOnCForB := suite.coordinator.CreateTransferChannels(suite.chainB, suite.chainC, connOnBForC, connOnCForB, channeltypes.UNORDERED)
 
-	err = suite.coordinator.SendMsg(suite.chainB, suite.chainA, clientA, msg)
+	// send from chainB to chainC
+	msg = types.NewMsgTransfer(channelOnBForC.PortID, channelOnBForC.ID, coinSentFromAToB, suite.chainB.SenderAccount.GetAddress(), suite.chainC.SenderAccount.GetAddress().String(), timeoutHeight, 0)
+
+	err = suite.coordinator.SendMsg(suite.chainB, suite.chainC, clientOnCForB, msg)
+	suite.Require().NoError(err) // message committed
+
+	// relay send
+	// NOTE: fungible token is prefixed with the full trace in order to verify the packet commitment
+	fullDenomPath := types.GetPrefixedDenom(channelOnCForB.PortID, channelOnCForB.ID, voucherDenomTrace.GetFullDenomPath())
+	fungibleTokenPacket = types.NewFungibleTokenPacketData(voucherDenomTrace.GetFullDenomPath(), coinSentFromAToB.Amount.Uint64(), suite.chainB.SenderAccount.GetAddress().String(), suite.chainC.SenderAccount.GetAddress().String())
+	packet = channeltypes.NewPacket(fungibleTokenPacket.GetBytes(), 1, channelOnBForC.PortID, channelOnBForC.ID, channelOnCForB.PortID, channelOnCForB.ID, timeoutHeight, 0)
+	err = suite.coordinator.RelayPacket(suite.chainB, suite.chainC, clientOnBForC, clientOnCForB, packet, ack.GetBytes())
+	suite.Require().NoError(err) // relay committed
+
+	coinSentFromBToC := sdk.NewInt64Coin(types.ParseDenomTrace(fullDenomPath).IBCDenom(), 100)
+	balance = suite.chainC.App.BankKeeper.GetBalance(suite.chainC.GetContext(), suite.chainC.SenderAccount.GetAddress(), coinSentFromBToC.Denom)
+
+	// check that the balance is updated on chainC
+	suite.Require().Equal(coinSentFromBToC, balance)
+
+	// check that balance on chain B is empty
+	balance = suite.chainB.App.BankKeeper.GetBalance(suite.chainB.GetContext(), suite.chainB.SenderAccount.GetAddress(), coinSentFromBToC.Denom)
+	suite.Require().Zero(balance.Amount.Int64())
+
+	// send from chainC back to chainB
+	msg = types.NewMsgTransfer(channelOnCForB.PortID, channelOnCForB.ID, coinSentFromBToC, suite.chainC.SenderAccount.GetAddress(), suite.chainB.SenderAccount.GetAddress().String(), timeoutHeight, 0)
+
+	err = suite.coordinator.SendMsg(suite.chainC, suite.chainB, clientOnBForC, msg)
 	suite.Require().NoError(err) // message committed
 
 	// relay send
 	// NOTE: fungible token is prefixed with the full trace in order to verify the packet commitment
-	voucherDenom := voucherDenomTrace.GetPrefix() + voucherDenomTrace.BaseDenom
-	fungibleTokenPacket = types.NewFungibleTokenPacketData(voucherDenom, coinToSendBackToA.Amount.Uint64(), suite.chainB.SenderAccount.GetAddress().String(), suite.chainA.SenderAccount.GetAddress().String())
-	packet = channeltypes.NewPacket(fungibleTokenPacket.GetBytes(), 1, channelB.PortID, channelB.ID, channelA.PortID, channelA.ID, timeoutHeight, 0)
-	err = suite.coordinator.RelayPacket(suite.chainB, suite.chainA, clientB, clientA, packet, ack.GetBytes())
+	fungibleTokenPacket = types.NewFungibleTokenPacketData(fullDenomPath, coinSentFromBToC.Amount.Uint64(), suite.chainC.SenderAccount.GetAddress().String(), suite.chainB.SenderAccount.GetAddress().String())
+	packet = channeltypes.NewPacket(fungibleTokenPacket.GetBytes(), 1, channelOnCForB.PortID, channelOnCForB.ID, channelOnBForC.PortID, channelOnBForC.ID, timeoutHeight, 0)
+	err = suite.coordinator.RelayPacket(suite.chainC, suite.chainB, clientOnCForB, clientOnBForC, packet, ack.GetBytes())
 	suite.Require().NoError(err) // relay committed
 
-	balance = suite.chainA.App.BankKeeper.GetBalance(suite.chainA.GetContext(), suite.chainA.SenderAccount.GetAddress(), sdk.DefaultBondDenom)
+	balance = suite.chainB.App.BankKeeper.GetBalance(suite.chainB.GetContext(), suite.chainB.SenderAccount.GetAddress(), coinSentFromAToB.Denom)
 
 	// check that the balance on chainA returned back to the original state
-	suite.Require().Equal(originalBalance, balance)
+	suite.Require().Equal(coinSentFromAToB, balance)
 
 	// check that module account escrow address is empty
 	escrowAddress := types.GetEscrowAddress(packet.GetDestPort(), packet.GetDestChannel())
-	balance = suite.chainA.App.BankKeeper.GetBalance(suite.chainA.GetContext(), escrowAddress, sdk.DefaultBondDenom)
+	balance = suite.chainB.App.BankKeeper.GetBalance(suite.chainB.GetContext(), escrowAddress, sdk.DefaultBondDenom)
 	suite.Require().Equal(sdk.NewCoin(sdk.DefaultBondDenom, sdk.ZeroInt()), balance)
 
 	// check that balance on chain B is empty
-	balance = suite.chainB.App.BankKeeper.GetBalance(suite.chainB.GetContext(), suite.chainB.SenderAccount.GetAddress(), voucherDenomTrace.IBCDenom())
+	balance = suite.chainC.App.BankKeeper.GetBalance(suite.chainC.GetContext(), suite.chainC.SenderAccount.GetAddress(), voucherDenomTrace.IBCDenom())
 	suite.Require().Zero(balance.Amount.Int64())
 }
 

x/ibc/applications/transfer/keeper/relay.go

@@ -218,7 +218,17 @@ func (k Keeper) OnRecvPacket(ctx sdk.Context, packet channeltypes.Packet, data t
 		// remove prefix added by sender chain
 		voucherPrefix := types.GetDenomPrefix(packet.GetSourcePort(), packet.GetSourceChannel())
 		unprefixedDenom := data.Denom[len(voucherPrefix):]
-		token := sdk.NewCoin(unprefixedDenom, sdk.NewIntFromUint64(data.Amount))
+
+		// coin denomination used in sending from the escrow address
+		denom := unprefixedDenom
+
+		// The denomination used to send the coins is either the native denom or the hash of the path
+		// if the denomination is not native.
+		denomTrace := types.ParseDenomTrace(unprefixedDenom)
+		if denomTrace.Path != "" {
+			denom = denomTrace.IBCDenom()
+		}
+		token := sdk.NewCoin(denom, sdk.NewIntFromUint64(data.Amount))
 
 		// unescrow tokens
 		escrowAddress := types.GetEscrowAddress(packet.GetDestPort(), packet.GetDestChannel())