Babylon cherry picks 2.5.7

modules/babylonlabs-io-btc-staking-ts/.gitignore

@@ -207,4 +207,4 @@ $RECYCLE.BIN/
 *.swp
 *.swo
 
-build/
+build/

modules/babylonlabs-io-btc-staking-ts/jest.setup.js

@@ -1,8 +1,7 @@
 const { initBTCCurve } = require("./src");
 
 const originalTest = global.test;
-const NUM_ITERATIONS = 3;
-;
+const NUM_ITERATIONS = parseInt(process.env.TEST_REPEAT_TIMES) || 1;
 
 initBTCCurve();
 

modules/babylonlabs-io-btc-staking-ts/package.json

@@ -1,6 +1,6 @@
 {
   "name": "@bitgo/babylonlabs-io-btc-staking-ts",
-  "version": "2.4.1",
+  "version": "3.0.0",
   "description": "Library exposing methods for the creation and consumption of Bitcoin transactions pertaining to Babylon's Bitcoin Staking protocol.",
   "module": "dist/index.js",
   "main": "dist/index.cjs",
@@ -27,7 +27,7 @@
     "btc-staking"
   ],
   "engines": {
-    "node": ">=20 < 23"
+    "node": ">=18 < 23"
   },
   "author": "Babylon Labs Ltd.",
   "license": "SEE LICENSE IN LICENSE",
@@ -37,7 +37,7 @@
     "nanoevents": "^9.1.0"
   },
   "dependencies": {
-    "@babylonlabs-io/babylon-proto-ts": "1.0.0",
+    "@babylonlabs-io/babylon-proto-ts": "1.7.2",
     "@bitcoin-js/tiny-secp256k1-asmjs": "2.2.3",
     "@cosmjs/encoding": "^0.33.0",
     "bip174": "=2.1.1",

modules/babylonlabs-io-btc-staking-ts/src/constants/fee.ts

@@ -2,8 +2,12 @@
 export const DEFAULT_INPUT_SIZE = 180;
 // Estimated size of a P2WPKH input in bytes
 export const P2WPKH_INPUT_SIZE = 68;
-// Estimated size of a P2TR input in bytes
+// Estimated size of a P2TR input in bytes. 42vb inputs + 16vb witness
 export const P2TR_INPUT_SIZE = 58;
+// Estimated size of a P2TR input in bytes for staking expansion transactions.
+// This value accounts for the witness size including covenant signatures
+// and is calibrated for a typical covenant quorum of 6 signatures.
+export const P2TR_STAKING_EXPANSION_INPUT_SIZE = 268;
 // Estimated size of a transaction buffer in bytes
 export const TX_BUFFER_SIZE_OVERHEAD = 11;
 // Buffer for estimation accuracy when fee rate <= 2 sat/byte

modules/babylonlabs-io-btc-staking-ts/src/constants/registry.ts

@@ -1,3 +1,4 @@
 export const BABYLON_REGISTRY_TYPE_URLS = {
   MsgCreateBTCDelegation: "/babylon.btcstaking.v1.MsgCreateBTCDelegation",
+  MsgBtcStakeExpand: "/babylon.btcstaking.v1.MsgBtcStakeExpand",
 };

modules/babylonlabs-io-btc-staking-ts/src/constants/staking.ts

@@ -0,0 +1,5 @@
+/**
+ * Staking module address for the Babylon Genesis chain.
+ * This address is derived deterministically from the module name and is the same across all environments.
+ */
+export const STAKING_MODULE_ADDRESS = "bbn13837feaxn8t0zvwcjwhw7lhpgdcx4s36eqteah"; 

modules/babylonlabs-io-btc-staking-ts/src/staking/index.ts

@@ -13,13 +13,11 @@ import {
   deriveStakingOutputInfo,
   findMatchingTxOutputIndex,
   toBuffers,
-  validateParams,
-  validateStakingTimelock,
-  validateStakingTxInputData,
 } from "../utils/staking";
-import { stakingPsbt, unbondingPsbt } from "./psbt";
+import { stakingExpansionPsbt, stakingPsbt, unbondingPsbt } from "./psbt";
 import { StakingScriptData, StakingScripts } from "./stakingScript";
 import {
+  stakingExpansionTransaction,
   slashEarlyUnbondedTransaction,
   slashTimelockUnbondedTransaction,
   stakingTransaction,
@@ -28,6 +26,7 @@ import {
   withdrawSlashingTransaction,
   withdrawTimelockUnbondedTransaction,
 } from "./transactions";
+import { validateParams, validateStakingExpansionCovenantQuorum, validateStakingTimelock, validateStakingTxInputData } from "../utils/staking/validation";
 export * from "./stakingScript";
 
 export interface StakerInfo {
@@ -171,6 +170,106 @@ export class Staking {
     }
   }
 
+  /**
+   * Creates a staking expansion transaction that extends an existing BTC stake
+   * to new finality providers or renews the timelock.
+   * 
+   * This method implements RFC 037 BTC Stake Expansion,
+   * allowing existing active BTC staking transactions
+   * to extend their delegation to new finality providers without going through
+   * the full unbonding process.
+   * 
+   * The expansion transaction:
+   * 1. Spends the previous staking transaction output as the first input
+   * 2. Uses funding UTXO as additional input to cover transaction fees or
+   *    to increase the staking amount
+   * 3. Creates a new staking output with expanded finality provider coverage or
+   *    renews the timelock
+   * 4. Has an output returning the remaining funds as change (if any) to the
+   * staker BTC address
+   * 
+   * @param {number} stakingAmountSat - The total staking amount in satoshis
+   * (The amount had to be equal to the previous staking amount for now, this
+   * lib does not yet support increasing the staking amount at this stage)
+   * @param {UTXO[]} inputUTXOs - Available UTXOs to use for funding the
+   * expansion transaction fees. Only one will be selected for the expansion
+   * @param {number} feeRate - Fee rate in satoshis per byte for the 
+   * expansion transaction
+   * @param {StakingParams} paramsForPreviousStakingTx - Staking parameters 
+   * used in the previous staking transaction
+   * @param {Object} previousStakingTxInfo - Necessary information to spend the
+   * previous staking transaction.
+   * @returns {TransactionResult & { fundingUTXO: UTXO }} - An object containing
+   * the unsigned expansion transaction and calculated fee, and the funding UTXO
+   * @throws {StakingError} - If the transaction cannot be built or validation
+   * fails
+   */
+  public createStakingExpansionTransaction(
+    stakingAmountSat: number,
+    inputUTXOs: UTXO[],
+    feeRate: number,
+    paramsForPreviousStakingTx: StakingParams,
+    previousStakingTxInfo: {
+      stakingTx: Transaction,
+      stakingInput: {
+        finalityProviderPksNoCoordHex: string[],
+        stakingTimelock: number,
+      },
+    },
+  ): TransactionResult & {
+    fundingUTXO: UTXO;
+  } {
+    validateStakingTxInputData(
+      stakingAmountSat,
+      this.stakingTimelock,
+      this.params,
+      inputUTXOs,
+      feeRate,
+    );
+    validateStakingExpansionCovenantQuorum(
+      paramsForPreviousStakingTx,
+      this.params,
+    );
+
+    // Create a Staking instance for the previous staking transaction
+    // This allows us to build the scripts needed to spend the previous
+    // staking output
+    const previousStaking = new Staking(
+      this.network,
+      this.stakerInfo,
+      paramsForPreviousStakingTx,
+      previousStakingTxInfo.stakingInput.finalityProviderPksNoCoordHex,
+      previousStakingTxInfo.stakingInput.stakingTimelock,
+    );
+
+    // Build the expansion transaction using the stakingExpansionTransaction
+    // utility function.
+    // This creates a transaction that spends the previous staking output and
+    // creates new staking outputs
+    const {
+      transaction: stakingExpansionTx,
+      fee: stakingExpansionTxFee,
+      fundingUTXO,
+    } = stakingExpansionTransaction(
+      this.network,
+      this.buildScripts(),
+      stakingAmountSat,
+      this.stakerInfo.address,
+      feeRate,
+      inputUTXOs,
+      {
+        stakingTx: previousStakingTxInfo.stakingTx,
+        scripts: previousStaking.buildScripts(),
+      },
+    )
+
+    return {
+      transaction: stakingExpansionTx,
+      fee: stakingExpansionTxFee,
+      fundingUTXO,
+    };
+  }
+
   /**
    * Create a staking psbt based on the existing staking transaction.
    *
@@ -200,6 +299,76 @@ export class Staking {
     );
   }
 
+  /**
+   * Convert a staking expansion transaction to a PSBT.
+   *
+   * @param {Transaction} stakingExpansionTx - The staking expansion
+   * transaction to convert
+   * @param {UTXO[]} inputUTXOs - Available UTXOs for the
+   * funding input (second input)
+   * @param {StakingParams} paramsForPreviousStakingTx - Staking parameters
+   * used for the previous staking transaction
+   * @param {Object} previousStakingTxInfo - Information about the previous
+   * staking transaction
+   * @returns {Psbt} The PSBT for the staking expansion transaction
+   * @throws {Error} If the previous staking output cannot be found or
+   * validation fails
+   */
+  public toStakingExpansionPsbt(
+    stakingExpansionTx: Transaction,
+    inputUTXOs: UTXO[],
+    paramsForPreviousStakingTx: StakingParams,
+    previousStakingTxInfo: {
+      stakingTx: Transaction,
+      stakingInput: {
+        finalityProviderPksNoCoordHex: string[],
+        stakingTimelock: number,
+      },
+    },
+  ): Psbt {
+    // Reconstruct the previous staking instance to access its scripts and
+    // parameters. This is necessary because we need to identify which output
+    // in the previous staking transaction is the staking output (it could be
+    // at any output index)
+    const previousStaking = new Staking(
+      this.network,
+      this.stakerInfo,
+      paramsForPreviousStakingTx,
+      previousStakingTxInfo.stakingInput.finalityProviderPksNoCoordHex,
+      previousStakingTxInfo.stakingInput.stakingTimelock,
+    );
+
+    // Find the staking output address in the previous staking transaction
+    const previousScripts = previousStaking.buildScripts();
+    const { outputAddress } = deriveStakingOutputInfo(previousScripts, this.network);
+
+    // Find the output index in the previous staking transaction that matches
+    // the staking output address.
+    const previousStakingOutputIndex = findMatchingTxOutputIndex(
+      previousStakingTxInfo.stakingTx,
+      outputAddress,
+      this.network,
+    );
+
+    // Create and return the PSBT for the staking expansion transaction
+    // The PSBT will have two inputs:
+    // 1. The previous staking output
+    // 2. A funding UTXO from inputUTXOs (for additional funds)
+    return stakingExpansionPsbt(
+      this.network,
+      stakingExpansionTx,
+      {
+        stakingTx: previousStakingTxInfo.stakingTx,
+        outputIndex: previousStakingOutputIndex,
+      },
+      inputUTXOs,
+      previousScripts,
+      isTaproot(this.stakerInfo.address, this.network)
+        ? Buffer.from(this.stakerInfo.publicKeyNoCoordHex, "hex")
+        : undefined,
+    );
+  }
+
   /**
    * Create an unbonding transaction for staking.
    *