Use fee abstraction
Overview
A cheqd-node
instance can be controlled and configured using the cheqd Cosmos CLI.
This document contains the Fee Abstraction commands for paying for transactions using governance-approved alternative tokens, e.g., a stablecoin such as USDC. The Fee Abstraction module routes requests for supported IBC denominations to Osmosis DEX, and uses existing liquidity pools (e.g., the CHEQ/USDC pool) to convert the tokens on the fly. The underlying transaction on cheqd network is always funded in CHEQ tokens.
Various commands are available for declaring fees in transactions, along with querying and configuring allowed denominations through governance proposals.
Supported IBC denominations
Fees for transactions cannot be denominated in arbitrary alternative tokens, when attempting to pay for transactions with non-CHEQ tokens. Supported IBC denominations must be approved using decentralised governance.
Prerequisites for using Fee Abstraction
The equivalent IBC denomination amount is required to pay for transactions. Ensure this amount is available in the equivalent cheqd account related to the cheqd account/key provided in the transaction, bridged from any Osmosis account.
Bridging from Osmosis
You can find out if you've got sufficient balance in supported IBC denominations using the following methods:
Through Leap Wallet
Ensure you have added the cheqd wallet you want to use for transactions to a supported desktop/mobile wallet. The recommended wallet app is Leap Wallet. If you previously used Keplr Wallet, we recommend migrating from Keplr Wallet to Leap Wallet as it has better support for looking up real-time gas prices.
Once you've added the cheqd wallet account to Leap Wallet, use the network switcher to switch to Osmosis. This will allow you to see the balances you have on Osmosis chain, including native OSMO as well as any IBC denominations such as USDC.
Sending tokens over IBC
If you have an existing Osmosis account, you can send tokens over IBC to your cheqd account. This is done by sending the tokens from your Osmosis account to the address of your cheqd account. Use the
Swap
flow to send tokens over IBC. The tokens will be sent to the cheqd account and will be available for use in transactions. Otherwise, you can use thecheqd-noded tx ibc-transfer transfer
command to send tokens over IBC from your Osmosis account to your cheqd account. The command will look like this:osmosisd tx ibc-transfer transfer <src-port> <src-channel> <to_address> <amount> --from <key_or_address> --node <url>
or specifically using theosmosisd tx ibc-transfer transfer transfer
command. Thesrc-port
andsrc-channel
are the port and channel used for IBC transfers. Usechannel-108
from Osmosis to cheqd route. Theto_address
is the address of your cheqd account, and theamount
is the amount of tokens you want to send. Thekey_or_address
is the key or address of your Osmosis account that you are sending the tokens from. Theurl
is the URL of the node you are sending the request to.Once the tokens are sent over IBC, you can use the
cheqd-noded query bank balances <address>
command to check the balance of your cheqd account. This will show you the balance of the tokens that were sent over IBC. Refer to Appendix for the IBC denomination of the tokens.
Getting sufficient balance of supported IBC denominations on equivalent Osmosis account
If you do not have sufficient balances in supported IBC denominations on Osmosis, you need to top-up the specific token you want in your Osmosis account
For USDC
If you already have USDC (regardless of which chain it is on), use Noble Express Transfer to transfer it first as Cosmos-native Noble USDC into Osmosis, before bridging it to cheqd. This is the fastest way to get USDC on Osmosis.
Acquire USDC on Osmosis by swapping existing tokens to USDC. You can use any token you have on Osmosis to swap for USDC. The most common tokens to swap for USDC are OSMO and ATOM. You can use the Osmosis DEX to swap tokens.
Once you have sufficient USDC on Osmosis, you can use the CLI or Leap Wallet to send the USDC over IBC to your cheqd account. The command will look like this:
osmosisd tx ibc-transfer transfer <src-port> <src-channel> <to_address> <amount> --from <key_or_address> --node <url>
Once the USDC is sent over IBC, you can use the
cheqd-noded query bank balances <address>
command to check the balance of your cheqd account. This will show you the balance of USDC that was sent over IBC. Refer to Appendix for the IBC denomination of USDC on Osmosis.You can also use the
cheqd-noded query feeabs osmo-arithmetic-twap <ibc_denom>
command to check the real-time rate for USDC on cheqd. This will show you the exchange rate in USDC that is required to pay for transactions on cheqd.
Interacting with Fee Abstraction
Querying allowed IBC denominations via CLI
As tokens supported for fee abstraction can only be allowlisted by governance, use the following command to find out which IBC denominations are supported:
Arguments
--node
: IP address or URL of node to send the request to--output json
(optional): Provides the output in JSON format
Example
Response
The
ibc_denom
is the IBC denomination of the supported asset on cheqd (not the IBC denomination of the asset on Osmosis).The
osmosis_pool_token_denom_in
is the IBC denomination of the asset on Osmosis.The
pool_id
is the ID of the liquidity pool on Osmosis that is used for the conversion.If the
status
is0
, the IBC denomination is allowed for transactions. If thestatus
is1
, the IBC denomination is not allowed for transactions. Also, if the IBC denomination is not included in the response, it is not allowed for transactions. The status can vary based on the relaying channel and whether outdated and / or frozen or not.
Querying allowed IBC denominations via REST API
You can also query allowed IBC denominations using the REST API, which can be useful for applications that do not use the node CLI. You can fetch this by initiating a GET request to:
Mainnet:
https://api.cheqd.net/fee-abstraction/feeabs/v1/all-host-chain-config
Testnet:
https://api.cheqd.network/fee-abstraction/feeabs/v1/all-host-chain-config
Response format for allowed IBC denominations from REST API
Querying allowed IBC denominations via REST API with a specific IBC denomination
You can also query allowed IBC denominations for a specific IBC denomination using the REST API. You can fetch this by initiating a GET request to:
Mainnet:
https://api.cheqd.net/fee-abstraction/feeabs/v1/host-chain-config/<ibc_denom>
Testnet:
https://api.cheqd.network/fee-abstraction/feeabs/v1/host-chain-config/<ibc_denom>
Response format for allowed IBC denominations from REST API with a specific IBC denomination
Querying and declaring fees in transactions
Querying real-time gas prices via CLI
Note: The real-time gas prices are used to calculate the fees for transactions. Denominations for fees are specified in the chain-native denomination, which is
ncheq
. You'll need to convert the gas price amount to the desired IBC denomination, as described within the next section.
Converting gas prices from ncheq
to IBC denomination and vice versa
ncheq
to IBC denomination and vice versaArguments
ibc_denom
: The IBC denomination to convert the gas price to--node
: IP address or URL of node to send the request to--output json
(optional): Provides the output in JSON format
Example
If the desired IBC denomination is not configured, the response will error out with a message indicating that the IBC denomination is not allowed for transactions.
Declaring fees in transactions
Arguments
from_key_or_address
: The key or address of the sender. If the key is used, the key must be unlocked in the keyring.to_address
: The address of the recipientamount
: The amount to send, in the format1000ncheq
. The amount must be in the chain-native denomination, which isncheq
gas
: The amount of gas to use orauto
to calculate the gas automaticallygas_prices
: The gas prices to use, in the format5000ncheq
or0.00000016ibc/F5FABF52B54E65064B57BF6DBD8E5FAD22CEE9F4B8A57ADBB20CCD0173AA72A4
fees
: The fees to pay, in the format1000000000ncheq
or0.032ibc/F5FABF52B54E65064B57BF6DBD8E5FAD22CEE9F4B8A57ADBB20CCD0173AA72A4
--node
: IP address or URL of node to send the request to
Note: Use either
--gas
and--gas-prices
or--fees
to declare fees in transactions. If--fees
is used, the--gas
and--gas-prices
flags are ignored.
Example
Declaring fees in transactions using --gas
and --gas-prices
Declaring fees in transactions using --fees
Note: Use with the
-y
flag to skip the confirmation prompt. Any fees declared in transactions are deducted from the sender's account by first converting the fees to the chain-native denomination, which isncheq
. Use with any compatible transaction type declared in thetx
command.
Declaring fees for identity transactions
Identity transactions require fees to be declared using the --fees
flag. The fees are deducted from the sender's account by first converting the fees to the chain-native denomination, which is ncheq
.
Similarly, declare fees for DID-Linked Resource transactions using the --fees
flag.
Configuring allowed IBC denominations through governance proposals
Submitting a governance proposal to allow an IBC denomination
Arguments
proposal-file
: The JSON file containing the proposal detailskey
: The key of the proposer to submit the proposal on behalf of--node
: IP address or URL of node to send the request to
Example
Note: Use with the
add-hostzone-config
proposal type to allow an IBC denomination for transactions. The proposal must be submitted by a proposer with the required deposit amount in the chain-native denomination, which isncheq
. The proposal details are specified in the JSON file. Fees can be declared using either the--gas
and--gas-prices
flags or the--fees
flag.
Appendix
ibc/498A0751C798A0D9A389AA3691123DADA57DAA4FE165D5C75894505B876BA6E4
: The $USDC IBC denomination for the Osmosis chainibc/F5FABF52B54E65064B57BF6DBD8E5FAD22CEE9F4B8A57ADBB20CCD0173AA72A4
: The $USDC IBC denomination for the cheqd chain (bridged from Osmosis)ibc/92AE2F53284505223A1BB80D132F859A00E190C6A738772F0B3EF65E20BA484F
: The $EURe IBC denomination for the Osmosis chainibc/7A08C6F11EF0F59EB841B9F788A87EC9F2361C7D9703157EC13D940DC53031FA
: The $CHEQ IBC denomination for the Osmosis chain
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