From 5f723f999ccc9cfbbe7716a180f7c819ebf69d2b Mon Sep 17 00:00:00 2001
From: Robert Zaremba <robert@zaremba.ch>
Date: Sat, 18 Feb 2023 13:47:33 +0100
Subject: [PATCH 01/13] fix(oracle): power vote calculation

---
 x/oracle/abci_test.go     | 108 ++++++++++++++++++++++++--------------
 x/oracle/keeper/ballot.go |   5 +-
 2 files changed, 71 insertions(+), 42 deletions(-)

diff --git a/x/oracle/abci_test.go b/x/oracle/abci_test.go
index 6223422c56..5dd5145c37 100644
--- a/x/oracle/abci_test.go
+++ b/x/oracle/abci_test.go
@@ -35,7 +35,7 @@ type IntegrationTestSuite struct {
 }
 
 const (
-	initialPower = int64(10000)
+	initialPower = int64(1000)
 )
 
 func (s *IntegrationTestSuite) SetupTest() {
@@ -52,13 +52,14 @@ func (s *IntegrationTestSuite) SetupTest() {
 	sh.Denom = bondDenom
 
 	// mint and send coins to validator
-	require.NoError(app.BankKeeper.MintCoins(ctx, minttypes.ModuleName, initCoins))
+	require.NoError(app.BankKeeper.MintCoins(ctx, minttypes.ModuleName, initCoins.MulInt(sdk.NewIntFromUint64(3))))
 	require.NoError(app.BankKeeper.SendCoinsFromModuleToAccount(ctx, minttypes.ModuleName, addr1, initCoins))
-	require.NoError(app.BankKeeper.MintCoins(ctx, minttypes.ModuleName, initCoins))
 	require.NoError(app.BankKeeper.SendCoinsFromModuleToAccount(ctx, minttypes.ModuleName, addr2, initCoins))
+	require.NoError(app.BankKeeper.SendCoinsFromModuleToAccount(ctx, minttypes.ModuleName, addr3, initCoins))
 
-	sh.CreateValidatorWithValPower(valAddr1, valPubKey1, 7000, true)
-	sh.CreateValidatorWithValPower(valAddr2, valPubKey2, 3000, true)
+	sh.CreateValidatorWithValPower(valAddr1, valPubKey1, 699, true)
+	sh.CreateValidatorWithValPower(valAddr2, valPubKey2, 300, true)
+	sh.CreateValidatorWithValPower(valAddr3, valPubKey3, 1, true)
 
 	staking.EndBlocker(ctx, *app.StakingKeeper)
 
@@ -68,7 +69,7 @@ func (s *IntegrationTestSuite) SetupTest() {
 
 // Test addresses
 var (
-	valPubKeys = simapp.CreateTestPubKeys(2)
+	valPubKeys = simapp.CreateTestPubKeys(3)
 
 	valPubKey1 = valPubKeys[0]
 	pubKey1    = secp256k1.GenPrivKey().PubKey()
@@ -80,6 +81,11 @@ var (
 	addr2      = sdk.AccAddress(pubKey2.Address())
 	valAddr2   = sdk.ValAddress(pubKey2.Address())
 
+	valPubKey3 = valPubKeys[2]
+	pubKey3    = secp256k1.GenPrivKey().PubKey()
+	addr3      = sdk.AccAddress(pubKey3.Address())
+	valAddr3   = sdk.ValAddress(pubKey3.Address())
+
 	initTokens = sdk.TokensFromConsensusPower(initialPower, sdk.DefaultPowerReduction)
 	initCoins  = sdk.NewCoins(sdk.NewCoin(bondDenom, initTokens))
 )
@@ -92,12 +98,9 @@ func (s *IntegrationTestSuite) TestEndBlockerVoteThreshold() {
 	voteBlockDiff := int64(app.OracleKeeper.VotePeriod(ctx)/2 + 1)
 
 	var (
-		val1Tuples   types.ExchangeRateTuples
-		val2Tuples   types.ExchangeRateTuples
-		val1PreVotes types.AggregateExchangeRatePrevote
-		val2PreVotes types.AggregateExchangeRatePrevote
-		val1Votes    types.AggregateExchangeRateVote
-		val2Votes    types.AggregateExchangeRateVote
+		val1Tuples types.ExchangeRateTuples
+		val2Tuples types.ExchangeRateTuples
+		val3Tuples types.ExchangeRateTuples
 	)
 	for _, denom := range app.OracleKeeper.AcceptList(ctx) {
 		val1Tuples = append(val1Tuples, types.ExchangeRateTuple{
@@ -108,36 +111,39 @@ func (s *IntegrationTestSuite) TestEndBlockerVoteThreshold() {
 			Denom:        denom.SymbolDenom,
 			ExchangeRate: sdk.MustNewDecFromStr("0.5"),
 		})
+		val3Tuples = append(val3Tuples, types.ExchangeRateTuple{
+			Denom:        denom.SymbolDenom,
+			ExchangeRate: sdk.MustNewDecFromStr("0.6"),
+		})
 	}
 
-	val1PreVotes = types.AggregateExchangeRatePrevote{
-		Hash:        "hash1",
-		Voter:       valAddr1.String(),
-		SubmitBlock: uint64(ctx.BlockHeight()),
-	}
-	val2PreVotes = types.AggregateExchangeRatePrevote{
-		Hash:        "hash2",
-		Voter:       valAddr2.String(),
-		SubmitBlock: uint64(ctx.BlockHeight()),
-	}
-
-	val1Votes = types.AggregateExchangeRateVote{
-		ExchangeRateTuples: val1Tuples,
-		Voter:              valAddr1.String(),
-	}
-	val2Votes = types.AggregateExchangeRateVote{
-		ExchangeRateTuples: val2Tuples,
-		Voter:              valAddr2.String(),
+	createVote := func(hash string, val sdk.ValAddress, rates types.ExchangeRateTuples, blockHeight uint64) (types.AggregateExchangeRatePrevote, types.AggregateExchangeRateVote) {
+		preVote := types.AggregateExchangeRatePrevote{
+			Hash:        "hash1",
+			Voter:       val.String(),
+			SubmitBlock: uint64(blockHeight),
+		}
+		vote := types.AggregateExchangeRateVote{
+			ExchangeRateTuples: rates,
+			Voter:              val.String(),
+		}
+		return preVote, vote
 	}
+	h := uint64(ctx.BlockHeight())
+	val1PreVotes, val1Votes := createVote("hash1", valAddr1, val1Tuples, h)
+	val2PreVotes, val2Votes := createVote("hash2", valAddr2, val2Tuples, h)
+	val3PreVotes, val3Votes := createVote("hash3", valAddr3, val3Tuples, h)
 
 	// total voting power per denom is 100%
 	app.OracleKeeper.SetAggregateExchangeRatePrevote(ctx, valAddr1, val1PreVotes)
 	app.OracleKeeper.SetAggregateExchangeRatePrevote(ctx, valAddr2, val2PreVotes)
+	app.OracleKeeper.SetAggregateExchangeRatePrevote(ctx, valAddr3, val3PreVotes)
 	oracle.EndBlocker(ctx, app.OracleKeeper)
 
 	ctx = ctx.WithBlockHeight(ctx.BlockHeight() + voteBlockDiff)
 	app.OracleKeeper.SetAggregateExchangeRateVote(ctx, valAddr1, val1Votes)
 	app.OracleKeeper.SetAggregateExchangeRateVote(ctx, valAddr2, val2Votes)
+	app.OracleKeeper.SetAggregateExchangeRateVote(ctx, valAddr3, val3Votes)
 	oracle.EndBlocker(ctx, app.OracleKeeper)
 
 	for _, denom := range app.OracleKeeper.AcceptList(ctx) {
@@ -146,12 +152,13 @@ func (s *IntegrationTestSuite) TestEndBlockerVoteThreshold() {
 		s.Require().Equal(sdk.MustNewDecFromStr("1.0"), rate)
 	}
 
-	// update prevotes' block
+	// Test: only val2 votes.
+	// Total voting power per denom must be bigger than 30%. So if only val2 votes,
+	// we won't have a price for the denom update prevotes' block.
 	ctx = ctx.WithBlockHeight(ctx.BlockHeight() + preVoteBlockDiff)
-	val1PreVotes.SubmitBlock = uint64(ctx.BlockHeight())
-	val2PreVotes.SubmitBlock = uint64(ctx.BlockHeight())
+	h = uint64(ctx.BlockHeight())
+	val2PreVotes.SubmitBlock = h
 
-	// total voting power per denom is 30%
 	app.OracleKeeper.SetAggregateExchangeRatePrevote(ctx, valAddr2, val2PreVotes)
 	oracle.EndBlocker(ctx, app.OracleKeeper)
 
@@ -165,12 +172,37 @@ func (s *IntegrationTestSuite) TestEndBlockerVoteThreshold() {
 		s.Require().Equal(sdk.ZeroDec(), rate)
 	}
 
-	// update prevotes' block
+	// Test: val2 and val3 votes.
+	// now we will have 30.1% of the power, so the we should have prices
+	ctx = ctx.WithBlockHeight(ctx.BlockHeight() + preVoteBlockDiff)
+	h = uint64(ctx.BlockHeight())
+	val2PreVotes.SubmitBlock = h
+	val3PreVotes.SubmitBlock = h
+
+	app.OracleKeeper.SetAggregateExchangeRatePrevote(ctx, valAddr2, val2PreVotes)
+	app.OracleKeeper.SetAggregateExchangeRatePrevote(ctx, valAddr3, val3PreVotes)
+	oracle.EndBlocker(ctx, app.OracleKeeper)
+
+	ctx = ctx.WithBlockHeight(ctx.BlockHeight() + voteBlockDiff)
+	app.OracleKeeper.SetAggregateExchangeRateVote(ctx, valAddr2, val2Votes)
+	app.OracleKeeper.SetAggregateExchangeRateVote(ctx, valAddr3, val3Votes)
+	oracle.EndBlocker(ctx, app.OracleKeeper)
+
+	for _, denom := range app.OracleKeeper.AcceptList(ctx) {
+		rate, err := app.OracleKeeper.GetExchangeRate(ctx, denom.SymbolDenom)
+		s.Require().NoError(err)
+		s.Require().Equal(sdk.MustNewDecFromStr("0.5"), rate)
+	}
+
+	return
+	// Test: all validators vote again
 	ctx = ctx.WithBlockHeight(ctx.BlockHeight() + preVoteBlockDiff)
-	val1PreVotes.SubmitBlock = uint64(ctx.BlockHeight())
-	val2PreVotes.SubmitBlock = uint64(ctx.BlockHeight())
+	h = uint64(ctx.BlockHeight())
+	val1PreVotes.SubmitBlock = h
+	val2PreVotes.SubmitBlock = h
+	val3PreVotes.SubmitBlock = h
 
-	// umee has 100% power, and atom has 30%
+	// umee has 99.9% power, and atom has 30%
 	val1Tuples = types.ExchangeRateTuples{
 		types.ExchangeRateTuple{
 			Denom:        "umee",
diff --git a/x/oracle/keeper/ballot.go b/x/oracle/keeper/ballot.go
index ec707022ad..bb6320d8bc 100644
--- a/x/oracle/keeper/ballot.go
+++ b/x/oracle/keeper/ballot.go
@@ -21,13 +21,10 @@ func (k Keeper) OrganizeBallotByDenom(
 		// organize ballot only for the active validators
 		claim, ok := validatorClaimMap[vote.Voter]
 		if ok {
-			power := claim.Power
-
 			for _, tuple := range vote.ExchangeRateTuples {
-				tmpPower := power
 				votes[tuple.Denom] = append(
 					votes[tuple.Denom],
-					types.NewVoteForTally(tuple.ExchangeRate, tuple.Denom, voterAddr, tmpPower),
+					types.NewVoteForTally(tuple.ExchangeRate, tuple.Denom, voterAddr, claim.Power),
 				)
 			}
 		}

From 27a217c6442565356328bc9e27890b98295e50b8 Mon Sep 17 00:00:00 2001
From: Robert Zaremba <robert@zaremba.ch>
Date: Sat, 18 Feb 2023 13:59:49 +0100
Subject: [PATCH 02/13] finish test

---
 x/oracle/abci_test.go | 21 ++++++---------------
 1 file changed, 6 insertions(+), 15 deletions(-)

diff --git a/x/oracle/abci_test.go b/x/oracle/abci_test.go
index 5dd5145c37..1ef4308d49 100644
--- a/x/oracle/abci_test.go
+++ b/x/oracle/abci_test.go
@@ -92,7 +92,6 @@ var (
 
 func (s *IntegrationTestSuite) TestEndBlockerVoteThreshold() {
 	app, ctx := s.app, s.ctx
-	originalBlockHeight := ctx.BlockHeight()
 	ctx = ctx.WithBlockHeight(1)
 	preVoteBlockDiff := int64(app.OracleKeeper.VotePeriod(ctx) / 2)
 	voteBlockDiff := int64(app.OracleKeeper.VotePeriod(ctx)/2 + 1)
@@ -194,33 +193,27 @@ func (s *IntegrationTestSuite) TestEndBlockerVoteThreshold() {
 		s.Require().Equal(sdk.MustNewDecFromStr("0.5"), rate)
 	}
 
-	return
-	// Test: all validators vote again
+	// TODO: check reward distribution
+
+	// Test: val1 and val2 vote again
+	// umee has 69.9% power, and atom has 30%, so we should have price for umee, but not for atom
 	ctx = ctx.WithBlockHeight(ctx.BlockHeight() + preVoteBlockDiff)
 	h = uint64(ctx.BlockHeight())
 	val1PreVotes.SubmitBlock = h
 	val2PreVotes.SubmitBlock = h
-	val3PreVotes.SubmitBlock = h
 
-	// umee has 99.9% power, and atom has 30%
-	val1Tuples = types.ExchangeRateTuples{
+	val1Votes.ExchangeRateTuples = types.ExchangeRateTuples{
 		types.ExchangeRateTuple{
 			Denom:        "umee",
 			ExchangeRate: sdk.MustNewDecFromStr("1.0"),
 		},
 	}
-	val2Tuples = types.ExchangeRateTuples{
-		types.ExchangeRateTuple{
-			Denom:        "umee",
-			ExchangeRate: sdk.MustNewDecFromStr("0.5"),
-		},
+	val2Votes.ExchangeRateTuples = types.ExchangeRateTuples{
 		types.ExchangeRateTuple{
 			Denom:        "atom",
 			ExchangeRate: sdk.MustNewDecFromStr("0.5"),
 		},
 	}
-	val1Votes.ExchangeRateTuples = val1Tuples
-	val2Votes.ExchangeRateTuples = val2Tuples
 
 	app.OracleKeeper.SetAggregateExchangeRatePrevote(ctx, valAddr1, val1PreVotes)
 	app.OracleKeeper.SetAggregateExchangeRatePrevote(ctx, valAddr2, val2PreVotes)
@@ -237,8 +230,6 @@ func (s *IntegrationTestSuite) TestEndBlockerVoteThreshold() {
 	rate, err = app.OracleKeeper.GetExchangeRate(ctx, "atom")
 	s.Require().ErrorIs(err, sdkerrors.Wrap(types.ErrUnknownDenom, "atom"))
 	s.Require().Equal(sdk.ZeroDec(), rate)
-
-	ctx = ctx.WithBlockHeight(originalBlockHeight)
 }
 
 var exchangeRates = map[string][]sdk.Dec{

From b0ed3bd01f10d62124fdc1e9bc1d3fb87d79f325 Mon Sep 17 00:00:00 2001
From: Robert Zaremba <robert@zaremba.ch>
Date: Mon, 20 Feb 2023 16:53:34 +0100
Subject: [PATCH 03/13] oracle: add SetVoteThreshold method

---
 x/oracle/abci.go          | 15 ++++++++-------
 x/oracle/abci_test.go     |  8 ++++++--
 x/oracle/keeper/params.go | 15 +++++++++++++--
 x/oracle/types/params.go  | 17 +++++++++++++++++
 4 files changed, 44 insertions(+), 11 deletions(-)

diff --git a/x/oracle/abci.go b/x/oracle/abci.go
index 6fe4f9d951..c6165c7207 100644
--- a/x/oracle/abci.go
+++ b/x/oracle/abci.go
@@ -1,6 +1,7 @@
 package oracle
 
 import (
+	"fmt"
 	"strings"
 	"time"
 
@@ -38,16 +39,14 @@ func CalcPrices(ctx sdk.Context, params types.Params, k keeper.Keeper) error {
 	validatorClaimMap := make(map[string]types.Claim)
 	powerReduction := k.StakingKeeper.PowerReduction(ctx)
 	// Calculate total validator power
-	var totalBondedValidatorPower int64
+	var totalBondedPower int64
 	for _, v := range k.StakingKeeper.GetBondedValidatorsByPower(ctx) {
-		totalBondedValidatorPower += v.GetConsensusPower(powerReduction)
+		totalBondedPower += v.GetConsensusPower(powerReduction)
 	}
 	for _, v := range k.StakingKeeper.GetBondedValidatorsByPower(ctx) {
 		addr := v.GetOperator()
-		validatorPowerRatio := sdk.NewDec(v.GetConsensusPower(powerReduction)).QuoInt64(totalBondedValidatorPower)
-		// Power is tracked as an int64 ranging from 0-100
-		validatorPower := validatorPowerRatio.MulInt64(100).RoundInt64()
-		validatorClaimMap[addr.String()] = types.NewClaim(validatorPower, 0, 0, addr)
+		valPower := v.GetConsensusPower(powerReduction)
+		validatorClaimMap[addr.String()] = types.NewClaim(valPower, 0, 0, addr)
 	}
 
 	// voteTargets defines the symbol (ticker) denoms that we require votes on
@@ -62,11 +61,13 @@ func CalcPrices(ctx sdk.Context, params types.Params, k keeper.Keeper) error {
 
 	// NOTE: it filters out inactive or jailed validators
 	ballotDenomSlice := k.OrganizeBallotByDenom(ctx, validatorClaimMap)
+	threshold := k.VoteThreshold(ctx).MulInt64(100).RoundInt().Int64()
+	fmt.Println(">>> threshold", threshold)
 
 	// Iterate through ballots and update exchange rates; drop if not enough votes have been achieved.
 	for _, ballotDenom := range ballotDenomSlice {
 		// Convert ballot power to a percentage to compare with VoteThreshold param
-		if sdk.NewDecWithPrec(ballotDenom.Ballot.Power(), 2).LTE(k.VoteThreshold(ctx)) {
+		if ballotDenom.Ballot.Power()*100/totalBondedPower <= threshold {
 			ctx.Logger().Info("Ballot voting power is under vote threshold, dropping ballot", "denom", ballotDenom)
 			continue
 		}
diff --git a/x/oracle/abci_test.go b/x/oracle/abci_test.go
index 1ef4308d49..9eebcdead2 100644
--- a/x/oracle/abci_test.go
+++ b/x/oracle/abci_test.go
@@ -57,12 +57,15 @@ func (s *IntegrationTestSuite) SetupTest() {
 	require.NoError(app.BankKeeper.SendCoinsFromModuleToAccount(ctx, minttypes.ModuleName, addr2, initCoins))
 	require.NoError(app.BankKeeper.SendCoinsFromModuleToAccount(ctx, minttypes.ModuleName, addr3, initCoins))
 
-	sh.CreateValidatorWithValPower(valAddr1, valPubKey1, 699, true)
-	sh.CreateValidatorWithValPower(valAddr2, valPubKey2, 300, true)
+	sh.CreateValidatorWithValPower(valAddr1, valPubKey1, 599, true)
+	sh.CreateValidatorWithValPower(valAddr2, valPubKey2, 400, true)
 	sh.CreateValidatorWithValPower(valAddr3, valPubKey3, 1, true)
 
 	staking.EndBlocker(ctx, *app.StakingKeeper)
 
+	err := app.OracleKeeper.SetVoteThreshold(ctx, sdk.MustNewDecFromStr("0.4"))
+	s.Require().NoError(err)
+
 	s.app = app
 	s.ctx = ctx
 }
@@ -194,6 +197,7 @@ func (s *IntegrationTestSuite) TestEndBlockerVoteThreshold() {
 	}
 
 	// TODO: check reward distribution
+	// https://github.com/umee-network/umee/issues/1853
 
 	// Test: val1 and val2 vote again
 	// umee has 69.9% power, and atom has 30%, so we should have price for umee, but not for atom
diff --git a/x/oracle/keeper/params.go b/x/oracle/keeper/params.go
index bf6d0f47f1..74ac4d41be 100644
--- a/x/oracle/keeper/params.go
+++ b/x/oracle/keeper/params.go
@@ -19,13 +19,24 @@ func (k Keeper) VotePeriod(ctx sdk.Context) (res uint64) {
 	return
 }
 
-// VoteThreshold returns the minimum percentage of votes that must be received
-// for a ballot to pass.
+// VoteThreshold returns the minimum rate of combined validator power of votes
+// that must be received for a ballot to pass.
 func (k Keeper) VoteThreshold(ctx sdk.Context) (res sdk.Dec) {
 	k.paramSpace.Get(ctx, types.KeyVoteThreshold, &res)
 	return
 }
 
+// SetVoteThreshold sets min combined validator power voting on a denom to accept
+// it as valid.
+// TODO: this is used in tests, we should refactor the way how this is handled.
+func (k Keeper) SetVoteThreshold(ctx sdk.Context, threshold sdk.Dec) error {
+	if err := types.ValidateVotingThreshold(threshold); err != nil {
+		return err
+	}
+	k.paramSpace.Set(ctx, types.KeyVoteThreshold, &threshold)
+	return nil
+}
+
 // RewardBand returns the ratio of allowable exchange rate error that a validator
 // can be rewarded.
 func (k Keeper) RewardBand(ctx sdk.Context) (res sdk.Dec) {
diff --git a/x/oracle/types/params.go b/x/oracle/types/params.go
index 59cc431633..abad5ab48c 100644
--- a/x/oracle/types/params.go
+++ b/x/oracle/types/params.go
@@ -4,10 +4,15 @@ import (
 	"fmt"
 
 	sdk "github.com/cosmos/cosmos-sdk/types"
+	sdkerrors "github.com/cosmos/cosmos-sdk/types/errors"
 	paramstypes "github.com/cosmos/cosmos-sdk/x/params/types"
 	"gopkg.in/yaml.v3"
 )
 
+var (
+	oneDec = sdk.OneDec()
+)
+
 // Parameter keys
 var (
 	KeyVotePeriod               = []byte("VotePeriod")
@@ -378,3 +383,15 @@ func validateMaximumMedianStamps(i interface{}) error {
 
 	return nil
 }
+
+func ValidateVotingThreshold(x sdk.Dec) error {
+	if !x.IsPositive() || x.GT(oneDec) {
+		return sdkerrors.ErrInvalidRequest.Wrap("threshold must be bigger than zero and <= 1")
+	}
+	i := x.MulInt64(100).RoundInt64()
+	x2 := sdk.NewDecWithPrec(i, 2)
+	if !x2.Equal(x) {
+		return sdkerrors.ErrInvalidRequest.Wrap("threshold precision must be maximum 2 decimals")
+	}
+	return nil
+}

From 286d6b29f534431b3263a4d302b1c9a13e8c46ce Mon Sep 17 00:00:00 2001
From: Robert Zaremba <robert@zaremba.ch>
Date: Mon, 20 Feb 2023 20:41:52 +0100
Subject: [PATCH 04/13] more VoteThreshold tests

---
 x/oracle/keeper/params.go     |  2 +-
 x/oracle/types/params.go      | 20 ++++++--------------
 x/oracle/types/params_test.go | 34 ++++++++++++++++++++++++++++++++++
 3 files changed, 41 insertions(+), 15 deletions(-)

diff --git a/x/oracle/keeper/params.go b/x/oracle/keeper/params.go
index 74ac4d41be..b70ba1cff7 100644
--- a/x/oracle/keeper/params.go
+++ b/x/oracle/keeper/params.go
@@ -30,7 +30,7 @@ func (k Keeper) VoteThreshold(ctx sdk.Context) (res sdk.Dec) {
 // it as valid.
 // TODO: this is used in tests, we should refactor the way how this is handled.
 func (k Keeper) SetVoteThreshold(ctx sdk.Context, threshold sdk.Dec) error {
-	if err := types.ValidateVotingThreshold(threshold); err != nil {
+	if err := types.ValidateVoteThreshold(threshold); err != nil {
 		return err
 	}
 	k.paramSpace.Set(ctx, types.KeyVoteThreshold, &threshold)
diff --git a/x/oracle/types/params.go b/x/oracle/types/params.go
index abad5ab48c..514c76059f 100644
--- a/x/oracle/types/params.go
+++ b/x/oracle/types/params.go
@@ -10,7 +10,8 @@ import (
 )
 
 var (
-	oneDec = sdk.OneDec()
+	oneDec           = sdk.OneDec()
+	minVoteThreshold = sdk.NewDecWithPrec(33, 2) // 0.33
 )
 
 // Parameter keys
@@ -225,16 +226,7 @@ func validateVoteThreshold(i interface{}) error {
 	if !ok {
 		return fmt.Errorf("invalid parameter type: %T", i)
 	}
-
-	if v.LT(sdk.NewDecWithPrec(33, 2)) {
-		return fmt.Errorf("vote threshold must be bigger than 33%%: %s", v)
-	}
-
-	if v.GT(sdk.OneDec()) {
-		return fmt.Errorf("vote threshold too large: %s", v)
-	}
-
-	return nil
+	return ValidateVoteThreshold(v)
 }
 
 func validateRewardBand(i interface{}) error {
@@ -384,9 +376,9 @@ func validateMaximumMedianStamps(i interface{}) error {
 	return nil
 }
 
-func ValidateVotingThreshold(x sdk.Dec) error {
-	if !x.IsPositive() || x.GT(oneDec) {
-		return sdkerrors.ErrInvalidRequest.Wrap("threshold must be bigger than zero and <= 1")
+func ValidateVoteThreshold(x sdk.Dec) error {
+	if x.LTE(minVoteThreshold) || x.GT(oneDec) {
+		return sdkerrors.ErrInvalidRequest.Wrap("threshold must be bigger than 0.33 and <= 1")
 	}
 	i := x.MulInt64(100).RoundInt64()
 	x2 := sdk.NewDecWithPrec(i, 2)
diff --git a/x/oracle/types/params_test.go b/x/oracle/types/params_test.go
index d6505fb78f..1c6e935bf7 100644
--- a/x/oracle/types/params_test.go
+++ b/x/oracle/types/params_test.go
@@ -4,6 +4,7 @@ import (
 	"testing"
 
 	"github.com/stretchr/testify/require"
+	"gotest.tools/v3/assert"
 
 	sdk "github.com/cosmos/cosmos-sdk/types"
 )
@@ -246,3 +247,36 @@ func TestParamsEqual(t *testing.T) {
 	require.NotNil(t, p13.ParamSetPairs())
 	require.NotNil(t, p13.String())
 }
+
+func TestValidateVotingThreshold(t *testing.T) {
+	tcs := []struct {
+		name   string
+		t      sdk.Dec
+		errMsg string
+	}{
+		{"fail: negative", sdk.MustNewDecFromStr("-1"), "threshold must be"},
+		{"fail: zero", sdk.ZeroDec(), "threshold must be"},
+		{"fail: less than 0.33", sdk.MustNewDecFromStr("0.3"), "threshold must be"},
+		{"fail: equal 0.33", sdk.MustNewDecFromStr("0.33"), "threshold must be"},
+		{"fail: more than 1", sdk.MustNewDecFromStr("1.1"), "threshold must be"},
+		{"fail: more than 1", sdk.MustNewDecFromStr("10"), "threshold must be"},
+		{"fail: max precision 2", sdk.MustNewDecFromStr("0.333"), "maximum 2 decimals"},
+		{"fail: max precision 2", sdk.MustNewDecFromStr("0.401"), "maximum 2 decimals"},
+		{"fail: max precision 2", sdk.MustNewDecFromStr("0.409"), "maximum 2 decimals"},
+		{"fail: max precision 2", sdk.MustNewDecFromStr("0.4009"), "maximum 2 decimals"},
+		{"fail: max precision 2", sdk.MustNewDecFromStr("0.999"), "maximum 2 decimals"},
+
+		{"ok: 1", sdk.MustNewDecFromStr("1"), ""},
+		{"ok: 0.34", sdk.MustNewDecFromStr("0.34"), ""},
+		{"ok: 0.99", sdk.MustNewDecFromStr("0.99"), ""},
+	}
+
+	for _, tc := range tcs {
+		err := ValidateVoteThreshold(tc.t)
+		if tc.errMsg == "" {
+			assert.NilError(t, err, "test_case", tc.name)
+		} else {
+			assert.ErrorContains(t, err, tc.errMsg, tc.name)
+		}
+	}
+}

From 6c85d26a352ce26e7a012a08689ef74812d10fd5 Mon Sep 17 00:00:00 2001
From: Robert Zaremba <robert@zaremba.ch>
Date: Mon, 20 Feb 2023 20:44:04 +0100
Subject: [PATCH 05/13] lint

---
 x/oracle/types/params.go | 4 ++++
 1 file changed, 4 insertions(+)

diff --git a/x/oracle/types/params.go b/x/oracle/types/params.go
index 514c76059f..b5b53c3c9b 100644
--- a/x/oracle/types/params.go
+++ b/x/oracle/types/params.go
@@ -376,6 +376,10 @@ func validateMaximumMedianStamps(i interface{}) error {
 	return nil
 }
 
+// ValidateVoteThreshold validates oracle exchange rates power vote threshold.
+// Must be
+// * a decimal value > 0.33 and <= 1.
+// * max precision is 2 (so 0.501 is not allowed)
 func ValidateVoteThreshold(x sdk.Dec) error {
 	if x.LTE(minVoteThreshold) || x.GT(oneDec) {
 		return sdkerrors.ErrInvalidRequest.Wrap("threshold must be bigger than 0.33 and <= 1")

From c49cc6b8d4d39b70d7df315bbf1d3c126d54159c Mon Sep 17 00:00:00 2001
From: Robert Zaremba <robert@zaremba.ch>
Date: Mon, 20 Feb 2023 22:02:34 +0100
Subject: [PATCH 06/13] cleanup

---
 x/oracle/abci.go         | 10 +++++-----
 x/oracle/abci_test.go    | 22 ++++++++++++++--------
 x/oracle/types/params.go | 10 ++++++++--
 3 files changed, 27 insertions(+), 15 deletions(-)

diff --git a/x/oracle/abci.go b/x/oracle/abci.go
index c6165c7207..0ef8fc639c 100644
--- a/x/oracle/abci.go
+++ b/x/oracle/abci.go
@@ -1,7 +1,6 @@
 package oracle
 
 import (
-	"fmt"
 	"strings"
 	"time"
 
@@ -61,13 +60,14 @@ func CalcPrices(ctx sdk.Context, params types.Params, k keeper.Keeper) error {
 
 	// NOTE: it filters out inactive or jailed validators
 	ballotDenomSlice := k.OrganizeBallotByDenom(ctx, validatorClaimMap)
-	threshold := k.VoteThreshold(ctx).MulInt64(100).RoundInt().Int64()
-	fmt.Println(">>> threshold", threshold)
+	threshold := k.VoteThreshold(ctx).MulInt64(types.MaxVoteThresholdMultiplier).TruncateInt64()
 
 	// Iterate through ballots and update exchange rates; drop if not enough votes have been achieved.
 	for _, ballotDenom := range ballotDenomSlice {
-		// Convert ballot power to a percentage to compare with VoteThreshold param
-		if ballotDenom.Ballot.Power()*100/totalBondedPower <= threshold {
+		// Calculate the rate as an integer value, scaled up using the same multiplayer as the
+		// `threshold` computed above
+		support := ballotDenom.Ballot.Power() * types.MaxVoteThresholdMultiplier / totalBondedPower
+		if support < threshold {
 			ctx.Logger().Info("Ballot voting power is under vote threshold, dropping ballot", "denom", ballotDenom)
 			continue
 		}
diff --git a/x/oracle/abci_test.go b/x/oracle/abci_test.go
index 9eebcdead2..97502c5ee4 100644
--- a/x/oracle/abci_test.go
+++ b/x/oracle/abci_test.go
@@ -42,24 +42,30 @@ func (s *IntegrationTestSuite) SetupTest() {
 	require := s.Require()
 	isCheckTx := false
 	app := umeeapp.Setup(s.T())
-	ctx := app.BaseApp.NewContext(isCheckTx, tmproto.Header{
+	ctx := app.NewContext(isCheckTx, tmproto.Header{
 		ChainID: fmt.Sprintf("test-chain-%s", tmrand.Str(4)),
 	})
 
 	oracle.InitGenesis(ctx, app.OracleKeeper, *types.DefaultGenesisState())
 
+	// validate setup... umeeapp.Setup creates one validator, with 1uumee self delegation
+	setupVals := app.StakingKeeper.GetBondedValidatorsByPower(ctx)
+	s.Require().Len(setupVals, 1)
+	s.Require().Equal(int64(1), setupVals[0].GetConsensusPower(app.StakingKeeper.PowerReduction(ctx)))
+
 	sh := teststaking.NewHelper(s.T(), ctx, *app.StakingKeeper)
 	sh.Denom = bondDenom
 
-	// mint and send coins to validator
+	// mint and send coins to validators
 	require.NoError(app.BankKeeper.MintCoins(ctx, minttypes.ModuleName, initCoins.MulInt(sdk.NewIntFromUint64(3))))
 	require.NoError(app.BankKeeper.SendCoinsFromModuleToAccount(ctx, minttypes.ModuleName, addr1, initCoins))
 	require.NoError(app.BankKeeper.SendCoinsFromModuleToAccount(ctx, minttypes.ModuleName, addr2, initCoins))
 	require.NoError(app.BankKeeper.SendCoinsFromModuleToAccount(ctx, minttypes.ModuleName, addr3, initCoins))
 
+	// self delegate 999 in total ... 1 val with 1uumee is already created in umeeapp.Setup
 	sh.CreateValidatorWithValPower(valAddr1, valPubKey1, 599, true)
-	sh.CreateValidatorWithValPower(valAddr2, valPubKey2, 400, true)
-	sh.CreateValidatorWithValPower(valAddr3, valPubKey3, 1, true)
+	sh.CreateValidatorWithValPower(valAddr2, valPubKey2, 398, true)
+	sh.CreateValidatorWithValPower(valAddr3, valPubKey3, 2, true)
 
 	staking.EndBlocker(ctx, *app.StakingKeeper)
 
@@ -154,9 +160,9 @@ func (s *IntegrationTestSuite) TestEndBlockerVoteThreshold() {
 		s.Require().Equal(sdk.MustNewDecFromStr("1.0"), rate)
 	}
 
-	// Test: only val2 votes.
-	// Total voting power per denom must be bigger than 30%. So if only val2 votes,
-	// we won't have a price for the denom update prevotes' block.
+	// Test: only val2 votes (has 39% vote power).
+	// Total voting power per denom must be bigger or equal than 40% (see SetupTest).
+	// So if only val2 votes, we won't have a price for the denom update prevotes' block.
 	ctx = ctx.WithBlockHeight(ctx.BlockHeight() + preVoteBlockDiff)
 	h = uint64(ctx.BlockHeight())
 	val2PreVotes.SubmitBlock = h
@@ -175,7 +181,7 @@ func (s *IntegrationTestSuite) TestEndBlockerVoteThreshold() {
 	}
 
 	// Test: val2 and val3 votes.
-	// now we will have 30.1% of the power, so the we should have prices
+	// now we will have 40% of the power, so now we should have prices
 	ctx = ctx.WithBlockHeight(ctx.BlockHeight() + preVoteBlockDiff)
 	h = uint64(ctx.BlockHeight())
 	val2PreVotes.SubmitBlock = h
diff --git a/x/oracle/types/params.go b/x/oracle/types/params.go
index b5b53c3c9b..b92855442c 100644
--- a/x/oracle/types/params.go
+++ b/x/oracle/types/params.go
@@ -14,6 +14,12 @@ var (
 	minVoteThreshold = sdk.NewDecWithPrec(33, 2) // 0.33
 )
 
+// maxium number of decimals allowed for VoteThreshold
+const (
+	MaxVoteThresholdPrecision  = 2
+	MaxVoteThresholdMultiplier = 100 // must be 10^MaxVoteThresholdPrecision
+)
+
 // Parameter keys
 var (
 	KeyVotePeriod               = []byte("VotePeriod")
@@ -384,8 +390,8 @@ func ValidateVoteThreshold(x sdk.Dec) error {
 	if x.LTE(minVoteThreshold) || x.GT(oneDec) {
 		return sdkerrors.ErrInvalidRequest.Wrap("threshold must be bigger than 0.33 and <= 1")
 	}
-	i := x.MulInt64(100).RoundInt64()
-	x2 := sdk.NewDecWithPrec(i, 2)
+	i := x.MulInt64(100).TruncateInt64()
+	x2 := sdk.NewDecWithPrec(i, MaxVoteThresholdPrecision)
 	if !x2.Equal(x) {
 		return sdkerrors.ErrInvalidRequest.Wrap("threshold precision must be maximum 2 decimals")
 	}

From 28ceaf4e12aa59bf1bb13df23c8667320501ddb5 Mon Sep 17 00:00:00 2001
From: Robert Zaremba <robert@zaremba.ch>
Date: Mon, 20 Feb 2023 23:23:25 +0100
Subject: [PATCH 07/13] Update x/oracle/types/params.go

Co-authored-by: Adam Moser <63419657+toteki@users.noreply.github.com>
---
 x/oracle/types/params.go | 2 +-
 1 file changed, 1 insertion(+), 1 deletion(-)

diff --git a/x/oracle/types/params.go b/x/oracle/types/params.go
index b92855442c..93a4137f6d 100644
--- a/x/oracle/types/params.go
+++ b/x/oracle/types/params.go
@@ -388,7 +388,7 @@ func validateMaximumMedianStamps(i interface{}) error {
 // * max precision is 2 (so 0.501 is not allowed)
 func ValidateVoteThreshold(x sdk.Dec) error {
 	if x.LTE(minVoteThreshold) || x.GT(oneDec) {
-		return sdkerrors.ErrInvalidRequest.Wrap("threshold must be bigger than 0.33 and <= 1")
+		return sdkerrors.ErrInvalidRequest.Wrapf("threshold must be bigger than %s and <= 1", minVoteThreshold)
 	}
 	i := x.MulInt64(100).TruncateInt64()
 	x2 := sdk.NewDecWithPrec(i, MaxVoteThresholdPrecision)

From 723b8c03e70ce2eae71faae895c80448488c1250 Mon Sep 17 00:00:00 2001
From: Adam Moser <63419657+toteki@users.noreply.github.com>
Date: Mon, 20 Feb 2023 15:48:12 -0700
Subject: [PATCH 08/13] comment changes only (review)

---
 x/oracle/abci.go          | 4 ++--
 x/oracle/abci_test.go     | 2 +-
 x/oracle/keeper/params.go | 2 +-
 3 files changed, 4 insertions(+), 4 deletions(-)

diff --git a/x/oracle/abci.go b/x/oracle/abci.go
index 0ef8fc639c..f6bf74019f 100644
--- a/x/oracle/abci.go
+++ b/x/oracle/abci.go
@@ -64,8 +64,8 @@ func CalcPrices(ctx sdk.Context, params types.Params, k keeper.Keeper) error {
 
 	// Iterate through ballots and update exchange rates; drop if not enough votes have been achieved.
 	for _, ballotDenom := range ballotDenomSlice {
-		// Calculate the rate as an integer value, scaled up using the same multiplayer as the
-		// `threshold` computed above
+		// Calculate the portion of votes received as an integer, scaled up using the
+		// same multiplier as the `threshold` computed above
 		support := ballotDenom.Ballot.Power() * types.MaxVoteThresholdMultiplier / totalBondedPower
 		if support < threshold {
 			ctx.Logger().Info("Ballot voting power is under vote threshold, dropping ballot", "denom", ballotDenom)
diff --git a/x/oracle/abci_test.go b/x/oracle/abci_test.go
index 97502c5ee4..062efef773 100644
--- a/x/oracle/abci_test.go
+++ b/x/oracle/abci_test.go
@@ -162,7 +162,7 @@ func (s *IntegrationTestSuite) TestEndBlockerVoteThreshold() {
 
 	// Test: only val2 votes (has 39% vote power).
 	// Total voting power per denom must be bigger or equal than 40% (see SetupTest).
-	// So if only val2 votes, we won't have a price for the denom update prevotes' block.
+	// So if only val2 votes, we won't have any prices next block.
 	ctx = ctx.WithBlockHeight(ctx.BlockHeight() + preVoteBlockDiff)
 	h = uint64(ctx.BlockHeight())
 	val2PreVotes.SubmitBlock = h
diff --git a/x/oracle/keeper/params.go b/x/oracle/keeper/params.go
index b70ba1cff7..a8261a31fc 100644
--- a/x/oracle/keeper/params.go
+++ b/x/oracle/keeper/params.go
@@ -19,7 +19,7 @@ func (k Keeper) VotePeriod(ctx sdk.Context) (res uint64) {
 	return
 }
 
-// VoteThreshold returns the minimum rate of combined validator power of votes
+// VoteThreshold returns the minimum portion of combined validator power of votes
 // that must be received for a ballot to pass.
 func (k Keeper) VoteThreshold(ctx sdk.Context) (res sdk.Dec) {
 	k.paramSpace.Get(ctx, types.KeyVoteThreshold, &res)

From 7e1bfec974313c9a5ec2dbfabd0bdb75cea99820 Mon Sep 17 00:00:00 2001
From: toteki <63419657+toteki@users.noreply.github.com>
Date: Mon, 20 Feb 2023 15:50:56 -0700
Subject: [PATCH 09/13] combine loops

---
 x/oracle/abci.go | 8 +++-----
 1 file changed, 3 insertions(+), 5 deletions(-)

diff --git a/x/oracle/abci.go b/x/oracle/abci.go
index f6bf74019f..1fb20c79af 100644
--- a/x/oracle/abci.go
+++ b/x/oracle/abci.go
@@ -39,13 +39,11 @@ func CalcPrices(ctx sdk.Context, params types.Params, k keeper.Keeper) error {
 	powerReduction := k.StakingKeeper.PowerReduction(ctx)
 	// Calculate total validator power
 	var totalBondedPower int64
-	for _, v := range k.StakingKeeper.GetBondedValidatorsByPower(ctx) {
-		totalBondedPower += v.GetConsensusPower(powerReduction)
-	}
 	for _, v := range k.StakingKeeper.GetBondedValidatorsByPower(ctx) {
 		addr := v.GetOperator()
-		valPower := v.GetConsensusPower(powerReduction)
-		validatorClaimMap[addr.String()] = types.NewClaim(valPower, 0, 0, addr)
+		power := v.GetConsensusPower(powerReduction)
+		totalBondedPower += power
+		validatorClaimMap[addr.String()] = types.NewClaim(power, 0, 0, addr)
 	}
 
 	// voteTargets defines the symbol (ticker) denoms that we require votes on

From 02aa72c7c79a88770f4b251eab66fa5eb676f45e Mon Sep 17 00:00:00 2001
From: toteki <63419657+toteki@users.noreply.github.com>
Date: Mon, 20 Feb 2023 15:54:23 -0700
Subject: [PATCH 10/13] fix simulations

---
 x/oracle/simulations/genesis.go | 4 ++--
 1 file changed, 2 insertions(+), 2 deletions(-)

diff --git a/x/oracle/simulations/genesis.go b/x/oracle/simulations/genesis.go
index ac53d07db7..ce84e9d957 100644
--- a/x/oracle/simulations/genesis.go
+++ b/x/oracle/simulations/genesis.go
@@ -30,9 +30,9 @@ func GenVotePeriod(r *rand.Rand) uint64 {
 	return uint64(5 + r.Intn(100))
 }
 
-// GenVoteThreshold produces a randomized VoteThreshold in the range of [0.333, 0.666]
+// GenVoteThreshold produces a randomized VoteThreshold in the range of [0.33, 0.66]
 func GenVoteThreshold(r *rand.Rand) sdk.Dec {
-	return sdk.NewDecWithPrec(333, 3).Add(sdk.NewDecWithPrec(int64(r.Intn(333)), 3))
+	return sdk.NewDecWithPrec(33, 2).Add(sdk.NewDecWithPrec(int64(r.Intn(33)), 2))
 }
 
 // GenRewardBand produces a randomized RewardBand in the range of [0.000, 0.100]

From f46649d6474c495b3ca92823d3ab19c64732d6b3 Mon Sep 17 00:00:00 2001
From: toteki <63419657+toteki@users.noreply.github.com>
Date: Mon, 20 Feb 2023 16:09:04 -0700
Subject: [PATCH 11/13] fix error test

---
 x/oracle/types/params_test.go | 4 ++--
 1 file changed, 2 insertions(+), 2 deletions(-)

diff --git a/x/oracle/types/params_test.go b/x/oracle/types/params_test.go
index 1c6e935bf7..08621d9752 100644
--- a/x/oracle/types/params_test.go
+++ b/x/oracle/types/params_test.go
@@ -29,10 +29,10 @@ func TestValidateVoteThreshold(t *testing.T) {
 	require.ErrorContains(t, err, "invalid parameter type: string")
 
 	err = validateVoteThreshold(sdk.MustNewDecFromStr("0.31"))
-	require.ErrorContains(t, err, "vote threshold must be bigger than 33%: 0.310000000000000000")
+	require.ErrorContains(t, err, "threshold must be bigger than 0.330000000000000000 and <= 1")
 
 	err = validateVoteThreshold(sdk.MustNewDecFromStr("40.0"))
-	require.ErrorContains(t, err, "vote threshold too large: 40.000000000000000000")
+	require.ErrorContains(t, err, "threshold must be bigger than 0.330000000000000000 and <= 1")
 
 	err = validateVoteThreshold(sdk.MustNewDecFromStr("0.35"))
 	require.Nil(t, err)

From 7d41b95ac5f23e9ff945f056de021ca1443d7966 Mon Sep 17 00:00:00 2001
From: toteki <63419657+toteki@users.noreply.github.com>
Date: Mon, 20 Feb 2023 16:24:04 -0700
Subject: [PATCH 12/13] fix sims?

---
 x/oracle/simulations/genesis.go | 4 ++--
 1 file changed, 2 insertions(+), 2 deletions(-)

diff --git a/x/oracle/simulations/genesis.go b/x/oracle/simulations/genesis.go
index ce84e9d957..900dff9b3e 100644
--- a/x/oracle/simulations/genesis.go
+++ b/x/oracle/simulations/genesis.go
@@ -30,9 +30,9 @@ func GenVotePeriod(r *rand.Rand) uint64 {
 	return uint64(5 + r.Intn(100))
 }
 
-// GenVoteThreshold produces a randomized VoteThreshold in the range of [0.33, 0.66]
+// GenVoteThreshold produces a randomized VoteThreshold in the range of [0.34, 0.67]
 func GenVoteThreshold(r *rand.Rand) sdk.Dec {
-	return sdk.NewDecWithPrec(33, 2).Add(sdk.NewDecWithPrec(int64(r.Intn(33)), 2))
+	return sdk.NewDecWithPrec(34, 2).Add(sdk.NewDecWithPrec(int64(r.Intn(33)), 2))
 }
 
 // GenRewardBand produces a randomized RewardBand in the range of [0.000, 0.100]

From befb8c223208a0e433b02c18e7c0d8d21d1a3acd Mon Sep 17 00:00:00 2001
From: Robert Zaremba <robert@zaremba.ch>
Date: Tue, 21 Feb 2023 00:38:37 +0100
Subject: [PATCH 13/13] review

---
 x/oracle/types/params_test.go | 6 ------
 1 file changed, 6 deletions(-)

diff --git a/x/oracle/types/params_test.go b/x/oracle/types/params_test.go
index 08621d9752..f91fc1130f 100644
--- a/x/oracle/types/params_test.go
+++ b/x/oracle/types/params_test.go
@@ -28,12 +28,6 @@ func TestValidateVoteThreshold(t *testing.T) {
 	err := validateVoteThreshold("invalidSdkType")
 	require.ErrorContains(t, err, "invalid parameter type: string")
 
-	err = validateVoteThreshold(sdk.MustNewDecFromStr("0.31"))
-	require.ErrorContains(t, err, "threshold must be bigger than 0.330000000000000000 and <= 1")
-
-	err = validateVoteThreshold(sdk.MustNewDecFromStr("40.0"))
-	require.ErrorContains(t, err, "threshold must be bigger than 0.330000000000000000 and <= 1")
-
 	err = validateVoteThreshold(sdk.MustNewDecFromStr("0.35"))
 	require.Nil(t, err)
 }