transfer (total escrow): add escrow / unescrow functions (backport co…

…smos#3507) (cosmos#3550)

* transfer (total escrow): add escrow / unescrow functions (cosmos#3507)

* add escrow/unescrow functions

* fix

* fix linter warning

* imp. add more code documentation

* chore. restructure code to match sybling function

---------

Co-authored-by: Colin Axnér <[email protected]>
Co-authored-by: Jim Fasarakis-Hilliard <[email protected]>
(cherry picked from commit 9ebc2f8)

# Conflicts:
#	modules/apps/transfer/keeper/relay.go

* resolving conflicts

---------

Co-authored-by: Carlos Rodriguez <[email protected]>
Co-authored-by: Damian Nolan <[email protected]>

modules/apps/transfer/keeper/relay.go

@@ -100,20 +100,12 @@ func (k Keeper) sendTransfer(
 	if types.SenderChainIsSource(sourcePort, sourceChannel, fullDenomPath) {
 		labels = append(labels, telemetry.NewLabel(coretypes.LabelSource, "true"))
 
-		// create the escrow address for the tokens
+		// obtain the escrow address for the source channel end
 		escrowAddress := types.GetEscrowAddress(sourcePort, sourceChannel)
-
-		// escrow source tokens. It fails if balance insufficient.
-		if err := k.bankKeeper.SendCoins(
-			ctx, sender, escrowAddress, sdk.NewCoins(token),
-		); err != nil {
+		if err := k.escrowToken(ctx, sender, escrowAddress, token); err != nil {
 			return 0, err
 		}
 
-		// track the total amount in escrow keyed by denomination to allow for efficient iteration
-		currentTotalEscrow := k.GetTotalEscrowForDenom(ctx, token.GetDenom())
-		newTotalEscrow := currentTotalEscrow.Add(token.Amount)
-		k.SetTotalEscrowForDenom(ctx, token.GetDenom(), newTotalEscrow)
 	} else {
 		labels = append(labels, telemetry.NewLabel(coretypes.LabelSource, "false"))
 
@@ -223,21 +215,11 @@ func (k Keeper) OnRecvPacket(ctx sdk.Context, packet channeltypes.Packet, data t
 			return sdkerrors.Wrapf(sdkerrors.ErrUnauthorized, "%s is not allowed to receive funds", receiver)
 		}
 
-		// unescrow tokens
 		escrowAddress := types.GetEscrowAddress(packet.GetDestPort(), packet.GetDestChannel())
-		if err := k.bankKeeper.SendCoins(ctx, escrowAddress, receiver, sdk.NewCoins(token)); err != nil {
-			// NOTE: this error is only expected to occur given an unexpected bug or a malicious
-			// counterparty module. The bug may occur in bank or any part of the code that allows
-			// the escrow address to be drained. A malicious counterparty module could drain the
-			// escrow address by allowing more tokens to be sent back then were escrowed.
-			return sdkerrors.Wrap(err, "unable to unescrow tokens, this may be caused by a malicious counterparty module or a bug: please open an issue on counterparty module")
+		if err := k.unescrowToken(ctx, escrowAddress, receiver, token); err != nil {
+			return err
 		}
 
-		// track the total amount in escrow keyed by denomination to allow for efficient iteration
-		currentTotalEscrow := k.GetTotalEscrowForDenom(ctx, token.GetDenom())
-		newTotalEscrow := currentTotalEscrow.Sub(token.Amount)
-		k.SetTotalEscrowForDenom(ctx, token.GetDenom(), newTotalEscrow)
-
 		defer func() {
 			if transferAmount.IsInt64() {
 				telemetry.SetGaugeWithLabels(
@@ -366,20 +348,7 @@ func (k Keeper) refundPacketToken(ctx sdk.Context, packet channeltypes.Packet, d
 	if types.SenderChainIsSource(packet.GetSourcePort(), packet.GetSourceChannel(), data.Denom) {
 		// unescrow tokens back to sender
 		escrowAddress := types.GetEscrowAddress(packet.GetSourcePort(), packet.GetSourceChannel())
-		if err := k.bankKeeper.SendCoins(ctx, escrowAddress, sender, sdk.NewCoins(token)); err != nil {
-			// NOTE: this error is only expected to occur given an unexpected bug or a malicious
-			// counterparty module. The bug may occur in bank or any part of the code that allows
-			// the escrow address to be drained. A malicious counterparty module could drain the
-			// escrow address by allowing more tokens to be sent back then were escrowed.
-			return sdkerrors.Wrap(err, "unable to unescrow tokens, this may be caused by a malicious counterparty module or a bug: please open an issue on counterparty module")
-		}
-
-		// track the total amount in escrow keyed by denomination to allow for efficient iteration
-		currentTotalEscrow := k.GetTotalEscrowForDenom(ctx, token.GetDenom())
-		newTotalEscrow := currentTotalEscrow.Sub(token.Amount)
-		k.SetTotalEscrowForDenom(ctx, token.GetDenom(), newTotalEscrow)
-
-		return nil
+		return k.unescrowToken(ctx, escrowAddress, sender, token)
 	}
 
 	// mint vouchers back to sender
@@ -396,6 +365,41 @@ func (k Keeper) refundPacketToken(ctx sdk.Context, packet channeltypes.Packet, d
 	return nil
 }
 
+// escrowToken will send the given token from the provided sender to the escrow address. It will also
+// update the total escrowed amount by adding the escrowed token to the current total escrow.
+func (k Keeper) escrowToken(ctx sdk.Context, sender, escrowAddress sdk.AccAddress, token sdk.Coin) error {
+	if err := k.bankKeeper.SendCoins(ctx, sender, escrowAddress, sdk.NewCoins(token)); err != nil {
+		// failure is expected for insufficient balances
+		return err
+	}
+
+	// track the total amount in escrow keyed by denomination to allow for efficient iteration
+	currentTotalEscrow := k.GetTotalEscrowForDenom(ctx, token.GetDenom())
+	newTotalEscrow := currentTotalEscrow.Add(token.Amount)
+	k.SetTotalEscrowForDenom(ctx, token.GetDenom(), newTotalEscrow)
+
+	return nil
+}
+
+// unescrowToken will send the given token from the escrow address to the provided receiver. It will also
+// update the total escrow by deducting the unescrowed token from the current total escrow.
+func (k Keeper) unescrowToken(ctx sdk.Context, escrowAddress, receiver sdk.AccAddress, token sdk.Coin) error {
+	if err := k.bankKeeper.SendCoins(ctx, escrowAddress, receiver, sdk.NewCoins(token)); err != nil {
+		// NOTE: this error is only expected to occur given an unexpected bug or a malicious
+		// counterparty module. The bug may occur in bank or any part of the code that allows
+		// the escrow address to be drained. A malicious counterparty module could drain the
+		// escrow address by allowing more tokens to be sent back then were escrowed.
+		return sdkerrors.Wrap(err, "unable to unescrow tokens, this may be caused by a malicious counterparty module or a bug: please open an issue on counterparty module")
+	}
+
+	// track the total amount in escrow keyed by denomination to allow for efficient iteration
+	currentTotalEscrow := k.GetTotalEscrowForDenom(ctx, token.GetDenom())
+	newTotalEscrow := currentTotalEscrow.Sub(token.Amount)
+	k.SetTotalEscrowForDenom(ctx, token.GetDenom(), newTotalEscrow)
+
+	return nil
+}
+
 // DenomPathFromHash returns the full denomination path prefix from an ibc denom with a hash
 // component.
 func (k Keeper) DenomPathFromHash(ctx sdk.Context, denom string) (string, error) {