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Feb 20, 2025
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* [Manage accounts](docs/cheqd-cli/cheqd-cli-accounts.md)
* [Manage a node](docs/cheqd-cli/cheqd-cli-node-management.md)
* [Make transactions](docs/cheqd-cli/cheqd-cli-token-transactions.md)
* [Use fee abstraction](docs/cheqd-cli/cheqd-cli-fee-abstraction.md)

## 🏦 Validator Guides

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# Leveraging Fee Abstraction through cheqd CLI

## Overview

A `cheqd-node` instance can be controlled and configured using the [cheqd Cosmos CLI](README.md).

This document contains the Fee Abstraction commands for [paying for transactions](cheqd-cli-token-transactions.md) 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](https://app.osmosis.zone), and uses existing liquidity pools (e.g., the [CHEQ/USDC pool](https://app.osmosis.zone/pool/1273)) 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.

### Querying allowed IBC denominations via CLI

```bash
cheqd-noded query feeabs all-host-chain-config --node <url>
```

#### Arguments

* `--node`: IP address or URL of node to send the request to

#### Example

```bash
$ cheqd-noded query feeabs all-host-chain-config --node https://rpc.cheqd.network:443

all_host_chain_config:
- ibc_denom: ibc/498A0751C798A0D9A389AA3691123DADA57DAA4FE165D5C75894505B876BA6E4
osmosis_pool_token_denom_in: ibc/498A0751C798A0D9A389AA3691123DADA57DAA4FE165D5C75894505B876BA6E4
pool_id: 1273
status: 0
```

> **Note**: Use `--output json` to get the output in JSON format.

If the `status` is `0`, the IBC denomination is allowed for transactions. If the `status` is `1`, 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.

## Querying and declaring fees in transactions

### Querying real-time gas prices via CLI

Refer to the [Querying real-time gas prices via CLI](cheqd-cli-token-transactions.md#querying-real-time-gas-prices-via-cli) section in the [cheqd-cli-token-transactions.md](cheqd-cli-token-transactions.md) document.

> **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

```bash
cheqd-noded query feeabs osmo-arithmetic-twap <ibc_denom> --node <url>
```

#### Arguments

* `ibc_denom`: The IBC denomination to convert the gas price to
* `--node`: IP address or URL of node to send the request to

#### Example

```bash
$ cheqd-noded query feeabs osmo-arithmetic-twap ibc/498A0751C798A0D9A389AA3691123DADA57DAA4FE165D5C75894505B876BA6E4 --node https://rpc.cheqd.network:443

osmo_arithmetic_twap: "34874.714483483365588155"
```

> **Note**: Use `--output json` to get the output in JSON format.

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

```bash
cheqd-noded tx bank <from_key_or_address> <to_address> <amount> --gas <gas> --gas-prices <gas_prices> --fees <fees> --node <url>
```

#### 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 recipient
* `amount`: The amount to send, in the format `1000ncheq`. The amount must be in the chain-native denomination, which is `ncheq`
* `gas`: The amount of gas to use or `auto` to calculate the gas automatically
* `gas_prices`: The gas prices to use, in the format `5000ncheq` or `0.00000016ibc/498A0751C798A0D9A389AA3691123DADA57DAA4FE165D5C75894505B876BA6E4`
* `fees`: The fees to pay, in the format `1000000000ncheq` or `0.032ibc/498A0751C798A0D9A389AA3691123DADA57DAA4FE165D5C75894505B876BA6E4`
* `--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`

```bash
$ cheqd-noded tx bank key1 cheqd1rnr5jrt4exl0samwj0yegv99jeskl0hsxmcz96 1000000000ncheq --gas auto --gas-prices 0.00000016ibc/498A0751C798A0D9A389AA3691123DADA57DAA4FE165D5C75894505B876BA6E4 --node https://rpc.cheqd.network:443

{"height":"0","txhash":"<tx_hash>","codespace":"","code":0,"data":"","raw_log":"[]","logs":[],"info":"","gas_wanted":"0","gas_used":"0","tx":null,"timestamp":"","events":[]}
```

##### Declaring fees in transactions using `--fees`

```bash
$ cheqd-noded tx bank key1 cheqd1rnr5jrt4exl0samwj0yegv99jeskl0hsxmcz96 1000000000ncheq --fees 0.032ibc/498A0751C798A0D9A389AA3691123DADA57DAA4FE165D5C75894505B876BA6E4 --node https://rpc.cheqd.network:443 -y

{"height":"0","txhash":"<tx_hash>","codespace":"","code":0,"data":"","raw_log":"[]","logs":[],"info":"","gas_wanted":"0","gas_used":"0","tx":null,"timestamp":"","events":[]}
```

> **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 is `ncheq`. Use with any compatible transaction type declared in the `tx` command.

##### Declaring fees for identity transactions

```bash
$ cheqd-noded tx cheqd create-did did-document.json --fees 1.6ibc/498A0751C798A0D9A389AA3691123DADA57DAA4FE165D5C75894505B876BA6E4 --node https://rpc.cheqd.network:443 -y

{"height":"0","txhash":"<tx_hash>","codespace":"","code":0,"data":"","raw_log":"[]","logs":[],"info":"","gas_wanted":"0","gas_used":"0","tx":null,"timestamp":"","events":[]}
```

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.

```bash
$ cheqd-noded tx resource create resource-payload.json data.json --fees 0.08ibc/498A0751C798A0D9A389AA3691123DADA57DAA4FE165D5C75894505B876BA6E4 --node https://rpc.cheqd.network:443 -y

{"height":"0","txhash":"<tx_hash>","codespace":"","code":0,"data":"","raw_log":"[]","logs":[],"info":"","gas_wanted":"0","gas_used":"0","tx":null,"timestamp":"","events":[]}
```

## Configuring allowed IBC denominations through governance proposals

### Submitting a governance proposal to allow an IBC denomination

```bash
cheqd-noded tx gov submit-legacy-proposal add-hostzone-config <proposal-file> --from <key> --node <url>
```

#### Arguments

* `proposal-file`: The JSON file containing the proposal details
* `key`: 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

```bash
$ cheqd-noded tx gov submit-legacy-proposal add-hostzone-config proposal.json --from key1 --gas auto --gas-prices 5000ncheq --node https://rpc.cheqd.network:443

{"height":"0","txhash":"<tx_hash>","codespace":"","code":0,"data":"","raw_log":"[]","logs":[],"info":"","gas_wanted":"0","gas_used":"0","tx":null,"timestamp":"","events":[]}
```

```json
{
"title": "Add $USDC IBC denomination to Host Zone",
"description": "Add $USDC IBC denomination to the Host Zone configuration",
"host_chain_fee_abs_config": {
"ibc_denom": "ibc/498A0751C798A0D9A389AA3691123DADA57DAA4FE165D5C75894505B876BA6E4",
"osmosis_pool_token_denom_in": "ibc/498A0751C798A0D9A389AA3691123DADA57DAA4FE165D5C75894505B876BA6E4",
"pool_id": "1273",
"status": 0
},
"deposit": "100000000000ncheq"
}
```

> **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 is `ncheq`. 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 chain
* `ibc/92AE2F53284505223A1BB80D132F859A00E190C6A738772F0B3EF65E20BA484F`: The $EURe IBC denomination for the Osmosis chain
* `ibc/7A08C6F11EF0F59EB841B9F788A87EC9F2361C7D9703157EC13D940DC53031FA`: The $CHEQ IBC denomination for the Osmosis chain