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179 changes: 179 additions & 0 deletions STAKING_IMPLEMENTATION.md
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# Key Staking Implementation Summary

## Overview
This implementation adds key staking functionality to the creator-keys contract, ensuring that staked keys cannot be sold until they are explicitly unstaked by the holder.

## Changes Made

### 1. Core Contract Changes (`creator-keys/src/lib.rs`)

#### Data Storage
- **Added `StakedBalance(Address, Address)` to `DataKey` enum**: Tracks staked amount per (creator, holder) pair
- **Added `staked_balance()` helper function**: Returns storage key for staked balance lookup

#### New Public Functions

##### `stake_keys(env, creator, holder, amount) -> Result<(), ContractError>`
- Stakes a specified amount of keys for a holder
- Requires holder authorization
- Validates that holder has sufficient liquid balance before staking
- Increments the staked balance
- **Errors**:
- `NotPositiveAmount` if amount is zero
- `InsufficientBalance` if liquid balance < amount
- `ProtocolPaused` if contract is paused

##### `unstake_keys(env, creator, holder, amount) -> Result<(), ContractError>`
- Unstakes a specified amount of previously staked keys
- Requires holder authorization
- Decrements the staked balance
- Removes storage entry when staked balance reaches zero
- **Errors**:
- `NotPositiveAmount` if amount is zero
- `InsufficientBalance` if staked balance < amount
- `ProtocolPaused` if contract is paused

##### `get_staked_balance(env, creator, holder) -> u32`
- Read-only view function
- Returns the number of staked keys for a holder
- Returns 0 if no keys are staked

##### `get_liquid_balance(env, creator, holder) -> u32`
- Read-only view function
- Returns sellable balance (total balance - staked balance)
- Returns 0 if all keys are staked or holder has no keys

#### Modified Functions

##### `sell_key(env, creator, seller, min_proceeds) -> Result<u32, ContractError>`
- **Modified to check liquid balance** instead of just total balance
- Calculates liquid balance as: `total_balance - staked_balance`
- Rejects sell attempts if liquid balance is zero
- **Key Change**: Added staked balance check before processing sell

```rust
// Check liquid balance (total balance - staked balance)
let staked_balance_key = constants::storage::staked_balance(&creator, &seller);
let staked_balance: u32 = env.storage().persistent().get(&staked_balance_key).unwrap_or(0);
let liquid_balance = current_balance.saturating_sub(staked_balance);

if liquid_balance == 0 {
return Err(ContractError::InsufficientBalance);
}
```

### 2. Test Suite (`creator-keys/tests/sell_requires_liquid_balance.rs`)

#### Test Cases

##### `test_sell_reverts_when_attempting_to_use_staked_keys`
- **Setup**: Holder has 10 keys, stakes 6 (leaving 4 liquid)
- **Action**: Attempt to sell 5 keys
- **Expected**: Reverts with `InsufficientBalance` error
- **Verifies**: Staked keys cannot be accessed for selling

##### `test_sell_succeeds_within_liquid_balance_limit`
- **Setup**: Holder has 10 keys, stakes 6 (leaving 4 liquid)
- **Action**: Sell exactly 4 keys (one at a time)
- **Expected**: All 4 sells succeed
- **Verifies**:
- Liquid balance reaches 0
- Staked balance unchanged at 6
- Total balance is 6 (all staked)

##### `test_staked_balance_unchanged_after_sell_attempts`
- **Setup**: Holder has 10 keys, stakes 6
- **Action**:
1. Attempt to sell 5 keys (fails)
2. Successfully sell 4 keys
- **Expected**: Staked balance remains at 6 throughout
- **Verifies**: Staked balance is immutable through sell operations

## Acceptance Criteria

✅ **Sell of 5 reverts when only 4 liquid keys available**
- Implemented in `test_sell_reverts_when_attempting_to_use_staked_keys`
- When 10 total keys with 6 staked (4 liquid), selling 5 returns `InsufficientBalance`

✅ **Sell of 4 succeeds using only liquid balance**
- Implemented in `test_sell_succeeds_within_liquid_balance_limit`
- All 4 liquid keys can be sold individually
- Staked keys remain untouched

✅ **Staked balance unchanged after both attempts**
- Verified in both test cases
- Failed sell attempt doesn't affect staked balance
- Successful sells only reduce liquid balance
- Staked balance remains constant at 6

## Implementation Details

### Storage Pattern
- Staked balance is stored separately from total balance
- Uses sparse storage (only stores non-zero values)
- Storage key: `DataKey::StakedBalance(creator.clone(), holder.clone())`

### Balance Calculation
- **Total Balance**: Stored in `KeyBalance(creator, holder)`
- **Staked Balance**: Stored in `StakedBalance(creator, holder)`
- **Liquid Balance**: Calculated as `total - staked` (uses `saturating_sub` for safety)

### Error Handling
- Reuses existing `ContractError` variants:
- `NotPositiveAmount`: For zero amount operations
- `InsufficientBalance`: For insufficient liquid/staked balance
- `ProtocolPaused`: For operations during pause
- `Overflow`: For arithmetic overflow protection

### Authorization
- Both `stake_keys` and `unstake_keys` require holder authorization
- Uses `holder.require_auth()` to ensure only the holder can stake/unstake their keys

## Commit Structure

### Commit 1: Implementation
```
feat: implement key staking to prevent selling of staked keys

- Add StakedBalance data key to track staked keys per (creator, holder)
- Add staked_balance storage helper function
- Implement stake_keys() to lock keys from being sold
- Implement unstake_keys() to unlock previously staked keys
- Implement get_staked_balance() to query staked amount
- Implement get_liquid_balance() to query sellable amount
- Modify sell_key() to check liquid balance (total - staked) instead of just total balance
```

### Commit 2: Tests
```
test: add tests for staked keys sell protection

- Test that selling 5 keys fails when only 4 liquid keys available (6 staked out of 10 total)
- Test that selling exactly 4 liquid keys succeeds
- Test that staked balance remains unchanged after failed and successful sell attempts
- Verify InsufficientBalance error when attempting to sell more than liquid balance
```

## Build Verification

⚠️ **Note**: Build and test execution could not be completed due to missing MSVC linker on the Windows build environment. However:
- Code follows existing patterns from the codebase
- Uses consistent error handling with other functions
- Follows Rust and Soroban SDK best practices
- Test structure matches existing test patterns

## Next Steps

To verify this implementation:
1. Install MSVC Build Tools or Visual Studio with C++ support
2. Run `cargo test --test sell_requires_liquid_balance`
3. Run `cargo test` to ensure no regressions in existing tests
4. Review contract size and gas costs if needed

## Security Considerations

- **No reentrancy risks**: All state changes happen atomically
- **Overflow protection**: Uses checked arithmetic operations
- **Authorization**: Requires holder auth for stake/unstake operations
- **Sparse storage**: Only stores non-zero staked balances to save space
- **Backward compatible**: Existing functionality unaffected (zero staked balance = all keys liquid)
143 changes: 143 additions & 0 deletions TEST_FIX_SUMMARY.md
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# Test Fix Summary

## Issue Identified

The initial tests had incorrect expectations about how `sell_key` behaves:

### Problem
- `sell_key` sells **ONE key at a time** (not a batch)
- Original tests expected the **first** sell to fail when holder has 4 liquid keys
- This was incorrect - the first 4 sells should succeed, and the 5th should fail

### Root Cause of Test Failures

**Test 1: `test_sell_reverts_when_attempting_to_use_staked_keys`**
- Expected: First `sell_key` call to fail with `InsufficientBalance`
- Actual: First `sell_key` call succeeded (returned `Ok(9)` for new supply)
- **Why**: With 4 liquid keys available, selling 1 key should succeed

**Test 2: `test_staked_balance_unchanged_after_sell_attempts`**
- Expected: First `sell_key` to fail, then 4 more to succeed
- Actual: Tried to sell 5 keys total, which exceeded liquid balance
- **Why**: The test logic was backwards

## Solution Applied

### Fixed Test 1: `test_sell_reverts_when_attempting_to_use_staked_keys`

**Before:**
```rust
// Just tried to sell once and expected it to fail
let result = client.try_sell_key(&creator, &holder, &None);
assert_eq!(result, Err(Ok(ContractError::InsufficientBalance)));
```

**After:**
```rust
// Sell 4 liquid keys successfully (one at a time)
for _ in 0..4 {
let result = client.try_sell_key(&creator, &holder, &None);
assert!(result.is_ok(), "Selling within liquid balance should succeed");
}

// Attempt to sell 5th key - should fail because only 4 were liquid
let result = client.try_sell_key(&creator, &holder, &None);
assert_eq!(
result,
Err(Ok(ContractError::InsufficientBalance)),
"Selling more than liquid balance should fail"
);
```

### Fixed Test 2: `test_staked_balance_unchanged_after_sell_attempts`

**Before:**
```rust
let _ = client.try_sell_key(&creator, &holder, &None); // Unclear intent
assert_eq!(client.get_staked_balance(&creator, &holder), 6);

for _ in 0..4 {
client.sell_key(&creator, &holder, &None); // Would fail on 5th total
}
```

**After:**
```rust
// Successfully sell 4 keys (one at a time)
for _ in 0..4 {
client.sell_key(&creator, &holder, &None);
}

// Verify staked balance unchanged after successful sells
assert_eq!(client.get_staked_balance(&creator, &holder), 6);
assert_eq!(client.get_liquid_balance(&creator, &holder), 0);

// Attempt to sell when no liquid balance remains (should fail)
let result = client.try_sell_key(&creator, &holder, &None);
assert_eq!(result, Err(Ok(ContractError::InsufficientBalance)));
```

## Test Behavior Now Correctly Verifies

### Scenario: 10 total keys, 6 staked, 4 liquid

| Action | Liquid Before | Expected Result | Liquid After | Staked |
|--------|--------------|-----------------|--------------|--------|
| Sell #1 | 4 | ✅ Success | 3 | 6 |
| Sell #2 | 3 | ✅ Success | 2 | 6 |
| Sell #3 | 2 | ✅ Success | 1 | 6 |
| Sell #4 | 1 | ✅ Success | 0 | 6 |
| Sell #5 | 0 | ❌ Fail (InsufficientBalance) | 0 | 6 |

## Acceptance Criteria Verification

✅ **Sell of 5 (total) reverts when only 4 liquid keys available**
- First 4 sells succeed
- 5th sell fails with `InsufficientBalance`

✅ **Sell of 4 succeeds using only liquid balance**
- All 4 liquid keys can be sold one at a time
- Staked keys remain untouched

✅ **Staked balance unchanged after both attempts**
- Remains at 6 after successful sells
- Remains at 6 after failed sell attempt
- Liquid balance correctly reaches 0 after 4 sells

## Implementation Correctness

The `sell_key` implementation is **correct**:

```rust
// Check liquid balance (total balance - staked balance)
let staked_balance_key = constants::storage::staked_balance(&creator, &seller);
let staked_balance: u32 = env
.storage()
.persistent()
.get(&staked_balance_key)
.unwrap_or(0);
let liquid_balance = current_balance.saturating_sub(staked_balance);

if liquid_balance == 0 {
return Err(ContractError::InsufficientBalance);
}
```

This properly:
1. Calculates liquid balance as `total - staked`
2. Rejects sells when liquid balance is 0
3. Allows sells when liquid balance > 0 (for the single key being sold)

## Commit

```
18d975b fix: correct test expectations for sell_key liquid balance validation
```

## Summary

The implementation was correct all along. The tests had incorrect expectations about the behavior of `sell_key` which sells one key per call, not a batch. Tests now correctly verify that:

1. Multiple sells within liquid balance succeed
2. Sells beyond liquid balance fail
3. Staked balance remains unchanged throughout
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