Merge pull request #1020 from persistenceOne/puneet/remove-rebalancing

refactor: stop rebalancing as it introduces redelegations

Author: puneet2019

CHANGELOG.md

@@ -39,6 +39,7 @@ Ref: https://keepachangelog.com/en/1.0.0/
 ### Refactoring
 
 - replace sdk-lsm to use gaia/liquid ([#1017](https://github.com/persistenceOne/pstake-native/pull/1017))
+- stop rebalancing as it introduces redelegations ([#1020](https://github.com/persistenceOne/pstake-native/pull/1020))
 
 ## [v4.0.0]
 

x/liquidstake/keeper/hooks.go

@@ -33,10 +33,13 @@ func (k Keeper) BeforeEpochStart(ctx sdk.Context, epochIdentifier string, _ int6
 			k.AutocompoundStakingRewards(ctx, liquidstake.GetWhitelistedValsMap(k.GetParams(ctx).WhitelistedValidators))
 		}
 
-		if epochIdentifier == liquidstake.RebalanceEpoch {
-			// return value of UpdateLiquidValidatorSet is useful only in testing
-			_ = k.UpdateLiquidValidatorSet(ctx, true)
-		}
+		// This has been commented as introducing redelegations for rebalancing affects stkAsset unstake flow
+		// https://github.com/cosmos/gaia/security/advisories/GHSA-r47q-464x-wx5x.
+		// TODO think of better approach for rebalancing
+		//if epochIdentifier == liquidstake.RebalanceEpoch {
+		//	// return value of UpdateLiquidValidatorSet is useful only in testing
+		//	_ = k.UpdateLiquidValidatorSet(ctx, true)
+		//}
 	}
 
 	return nil