[chriswessels]

Effective cut counted thawing delegation

Root cause

All line numbers refer to master (b572f8b) unless they say otherwise.

The Horizon stake ratios used gross amounts. delegatedStakeRatio feeds both effective cuts, so the cuts were wrong too.

Function	Problem on master
calculateOwnStakeRatioForProvision, calculateDelegatedStakeRatioForProvision (src/mappings/helpers/helpers.ts:1115-1127)	Used tokensProvisioned + delegatedTokens. That counts delegatedThawingTokens and tokensThawing.
calculateOverdelegationDilutionForProvision (helpers.ts:1156)	Same gross amounts.
calculateOwnStakeRatio (helpers.ts:1013), Indexer level	Used stakedTokens - lockedTokens and gross delegatedTokens. It did not subtract delegatedThawingTokens or provision thawingTokens.
calculateOverdelegationDilution (helpers.ts:1079), Indexer level	Used raw stakedTokens (without even subtracting lockedTokens) and gross delegatedTokens.

• Effective cuts: calculate{IndexingReward,QueryFee}EffectiveCut[ForProvision] and the legacy variants compute 1 − delegatorCut / delegatedStakeRatio. They inherit the error.
• Delegation ratios: calculateCapacitiesHorizon and updateDelegationExchangeRate* already subtracted thawing amounts. Only the "advanced metrics" did not.
• Provider stake: this was also affected, at both the Provision and the Indexer level. tokensThawing and thawingTokens were never subtracted.

Fix

The helpers are in src/mappings/helpers/helpers.ts on the branch:

• getActiveProvisionTokens (1128) returns tokensProvisioned − tokensThawing.
• getActiveProvisionDelegation (1134) returns delegatedTokens − delegatedThawingTokens.
• getActiveIndexerStake (1015) returns stakedTokens − lockedTokens − thawingTokens.
• getActiveIndexerDelegation (1021) returns delegatedTokens − delegatedThawingTokens.

The ratio and dilution functions now use these helpers. The result is effectiveCut = 1 − delegatorCut / (D_active / (P_active + D_active)).

What stays the same:

• With zero active delegation, delegatedStakeRatio is 0 and the effective cut is 0, as before.
• The Indexer delegationRatio cap and the over-delegation dilution formulas are unchanged. Only their inputs changed.
• No schema change.

Handlers touched (src/mappings/horizonStaking.ts)

These handlers already recalculated, and still do:

• handleDelegationFeeCutSet
• handleTokensToDelegationPoolAdded
• handleTokensDelegated
• handleTokensUndelegated
• handleDelegationSlashed (Provision only)

These handlers changed thawing or stake state without recalculating. Each now calls updateAdvancedProvisionMetrics and/or updateAdvancedIndexerMetrics:

Handler	Provision	Indexer
handleProvisionCreated	yes	yes
handleProvisionIncreased	yes	yes
handleProvisionThawed	yes	yes
handleTokensDeprovisioned	yes	yes
handleProvisionSlashed	yes	yes
handleDelegationSlashed	already did	added
handleDelegatedTokensWithdrawn	yes (active amounts don't change, so this keeps the values consistent)	yes
handleHorizonStakeDeposited, handleHorizonStakeLocked, handleHorizonStakeWithdrawn	–	yes

Test evidence

• Added tests/horizonStaking.test.ts and tests/factories/horizonStaking.ts. These are the first Horizon handler tests in the repo.
• The test replays the reproduction through the handlers: provision 11,278,919 GRT; 1,439,299 GRT delegated; 36,201 GRT undelegated; both cuts 900000.

Check	Expected value
Provision indexingRewardEffectiveCut and queryFeeEffectiveCut	≈ 0.096142
Indexer-level effective cuts	≈ 0.096142
Same, after DelegatedTokensWithdrawn	unchanged
Same, after ProvisionThawed of 1M GRT	recalculated to ≈ 0.167413
Same, after TokensDeprovisioned of that 1M	unchanged
All delegation thawing	delegatedStakeRatio 0, effective cut 0

[juanmardefago]

Changes look good! Nice catch.

Thanks to this report I also found 2 extra changes required to line everything up correctly, but we can safely merge this once the test workflows finish running.