Redesign IBC on packet recv error/ result.Err handling

x/wasm/ibc.go

@@ -264,26 +264,26 @@ func (i IBCHandler) OnRecvPacket(
 ) ibcexported.Acknowledgement {
 	contractAddr, err := ContractFromPortID(packet.DestinationPort)
 	if err != nil {
-		return channeltypes.NewErrorAcknowledgement(errorsmod.Wrapf(err, "contract port id"))
+		// this must not happen as ports were registered before
+		panic(errorsmod.Wrapf(err, "contract port id"))
 	}
+
+	em := sdk.NewEventManager()
 	msg := wasmvmtypes.IBCPacketReceiveMsg{Packet: newIBCPacket(packet), Relayer: relayer.String()}
-	ack, err := i.keeper.OnRecvPacket(ctx, contractAddr, msg)
+	ack, err := i.keeper.OnRecvPacket(ctx.WithEventManager(em), contractAddr, msg)
 	if err != nil {
-		return channeltypes.NewErrorAcknowledgement(err)
+		ack = channeltypes.NewErrorAcknowledgement(err)
+		types.EmitAcknowledgementEvent(ctx, contractAddr, ack, err)
+		// the state gets reverted, so we drop all captured events
+		return ack
 	}
-	return ContractConfirmStateAck(ack)
-}
-
-var _ ibcexported.Acknowledgement = ContractConfirmStateAck{}
-
-type ContractConfirmStateAck []byte
-
-func (w ContractConfirmStateAck) Success() bool {
-	return true // always commit state
-}
-
-func (w ContractConfirmStateAck) Acknowledgement() []byte {
-	return w
+	if ack == nil || ack.Success() {
+		// emit all contract and submessage events on success
+		// nil ack is a success case, see: https://github.com/cosmos/ibc-go/blob/v7.0.0/modules/core/keeper/msg_server.go#L453
+		ctx.EventManager().EmitEvents(em.Events())
+	}
+	types.EmitAcknowledgementEvent(ctx, contractAddr, ack, nil)
+	return ack
 }
 
 // OnAcknowledgementPacket implements the IBCModule interface

x/wasm/ibc_test.go

@@ -4,11 +4,125 @@ import (
 	"testing"
 
 	wasmvmtypes "github.com/CosmWasm/wasmvm/types"
+	abci "github.com/cometbft/cometbft/abci/types"
+	"github.com/cometbft/cometbft/libs/rand"
+	sdk "github.com/cosmos/cosmos-sdk/types"
+	"github.com/cosmos/cosmos-sdk/types/address"
 	clienttypes "github.com/cosmos/ibc-go/v7/modules/core/02-client/types"
 	channeltypes "github.com/cosmos/ibc-go/v7/modules/core/04-channel/types"
+	ibcexported "github.com/cosmos/ibc-go/v7/modules/core/exported"
 	"github.com/stretchr/testify/assert"
+	"github.com/stretchr/testify/require"
+
+	"github.com/CosmWasm/wasmd/x/wasm/keeper"
+	"github.com/CosmWasm/wasmd/x/wasm/types"
 )
 
+func TestOnRecvPacket(t *testing.T) {
+	anyRelayerAddr := sdk.AccAddress(rand.Bytes(address.Len))
+	anyContractIBCPkg := IBCPacketFixture(func(p *channeltypes.Packet) {
+		p.DestinationPort = "wasm.cosmos1w09vr7rpe2agu0kg2zlpkdckce865l3zps8mxjurxthfh3m7035qe5hh7f"
+	})
+	myCustomEvent := sdk.NewEvent("testing")
+	specs := map[string]struct {
+		ibcPkg      channeltypes.Packet
+		contractRsp ibcexported.Acknowledgement
+		contractErr error
+		expEvents   sdk.Events
+		expPanic    bool
+		expAck      ibcexported.Acknowledgement
+	}{
+		"contract returns success response": {
+			ibcPkg:      anyContractIBCPkg,
+			contractRsp: keeper.ContractConfirmStateAck([]byte{1}),
+			expAck:      keeper.ContractConfirmStateAck([]byte{1}),
+			expEvents: sdk.Events{
+				myCustomEvent,
+				{
+					Type: "ibc_packet_received",
+					Attributes: []abci.EventAttribute{
+						{Key: "module", Value: "wasm"},
+						{Key: "_contract_address", Value: "cosmos1w09vr7rpe2agu0kg2zlpkdckce865l3zps8mxjurxthfh3m7035qe5hh7f"},
+						{Key: "success", Value: "true"},
+					},
+				},
+			},
+		},
+		"contract returns err response": {
+			ibcPkg:      anyContractIBCPkg,
+			contractRsp: channeltypes.NewErrorAcknowledgement(types.ErrInvalid.Wrap("testing")),
+			expAck:      channeltypes.NewErrorAcknowledgement(types.ErrInvalid.Wrap("testing")),
+			expEvents: sdk.Events{
+				{
+					Type: "ibc_packet_received",
+					Attributes: []abci.EventAttribute{
+						{Key: "module", Value: "wasm"},
+						{Key: "_contract_address", Value: "cosmos1w09vr7rpe2agu0kg2zlpkdckce865l3zps8mxjurxthfh3m7035qe5hh7f"},
+						{Key: "success", Value: "false"},
+					},
+				},
+			},
+		},
+		"nil considered success response": { // regression only
+			ibcPkg: anyContractIBCPkg,
+			expEvents: sdk.Events{
+				myCustomEvent,
+				{
+					Type: "ibc_packet_received",
+					Attributes: []abci.EventAttribute{
+						{Key: "module", Value: "wasm"},
+						{Key: "_contract_address", Value: "cosmos1w09vr7rpe2agu0kg2zlpkdckce865l3zps8mxjurxthfh3m7035qe5hh7f"},
+						{Key: "success", Value: "true"},
+					},
+				},
+			},
+		},
+		"unknown contract port": {
+			ibcPkg: IBCPacketFixture(func(p *channeltypes.Packet) {
+				p.DestinationPort = "not-a-contract-port"
+			}),
+			expPanic: true,
+		},
+		"contract executed with error": {
+			ibcPkg:      anyContractIBCPkg,
+			contractErr: types.ErrInvalid.Wrap("testing"),
+			expAck:      channeltypes.NewErrorAcknowledgement(types.ErrInvalid.Wrap("testing")),
+			expEvents: sdk.Events{{
+				Type: "ibc_packet_received",
+				Attributes: []abci.EventAttribute{
+					{Key: "module", Value: "wasm"},
+					{Key: "_contract_address", Value: "cosmos1w09vr7rpe2agu0kg2zlpkdckce865l3zps8mxjurxthfh3m7035qe5hh7f"},
+					{Key: "success", Value: "false"},
+					{Key: "error", Value: "testing: invalid"}, // not redacted
+				},
+			}},
+		},
+	}
+	for name, spec := range specs {
+		t.Run(name, func(t *testing.T) {
+			mock := IBCContractKeeperMock{
+				OnRecvPacketFn: func(ctx sdk.Context, contractAddr sdk.AccAddress, msg wasmvmtypes.IBCPacketReceiveMsg) (ibcexported.Acknowledgement, error) {
+					// additional custom event to confirm event handling on state commit/ rollback
+					ctx.EventManager().EmitEvent(myCustomEvent)
+					return spec.contractRsp, spec.contractErr
+				},
+			}
+			h := NewIBCHandler(mock, nil, nil)
+			em := &sdk.EventManager{}
+			ctx := sdk.Context{}.WithEventManager(em)
+			if spec.expPanic {
+				require.Panics(t, func() {
+					_ = h.OnRecvPacket(ctx, spec.ibcPkg, anyRelayerAddr)
+				})
+				return
+			}
+			gotAck := h.OnRecvPacket(ctx, spec.ibcPkg, anyRelayerAddr)
+			assert.Equal(t, spec.expAck, gotAck)
+			assert.Equal(t, spec.expEvents, em.Events())
+		})
+	}
+}
+
 func TestMapToWasmVMIBCPacket(t *testing.T) {
 	var myTimestamp uint64 = 1
 	specs := map[string]struct {
@@ -80,3 +194,17 @@ func IBCPacketFixture(mutators ...func(p *channeltypes.Packet)) channeltypes.Pac
 	}
 	return r
 }
+
+var _ types.IBCContractKeeper = &IBCContractKeeperMock{}
+
+type IBCContractKeeperMock struct {
+	types.IBCContractKeeper
+	OnRecvPacketFn func(ctx sdk.Context, contractAddr sdk.AccAddress, msg wasmvmtypes.IBCPacketReceiveMsg) (ibcexported.Acknowledgement, error)
+}
+
+func (m IBCContractKeeperMock) OnRecvPacket(ctx sdk.Context, contractAddr sdk.AccAddress, msg wasmvmtypes.IBCPacketReceiveMsg) (ibcexported.Acknowledgement, error) {
+	if m.OnRecvPacketFn == nil {
+		panic("not expected to be called")
+	}
+	return m.OnRecvPacketFn(ctx, contractAddr, msg)
+}

x/wasm/keeper/relay.go

@@ -3,6 +3,9 @@ package keeper
 import (
 	"time"
 
+	channeltypes "github.com/cosmos/ibc-go/v7/modules/core/04-channel/types"
+	ibcexported "github.com/cosmos/ibc-go/v7/modules/core/exported"
+
 	errorsmod "cosmossdk.io/errors"
 	wasmvmtypes "github.com/CosmWasm/wasmvm/types"
 	"github.com/cosmos/cosmos-sdk/telemetry"
@@ -116,7 +119,7 @@ func (k Keeper) OnRecvPacket(
 	ctx sdk.Context,
 	contractAddr sdk.AccAddress,
 	msg wasmvmtypes.IBCPacketReceiveMsg,
-) ([]byte, error) {
+) (ibcexported.Acknowledgement, error) {
 	defer telemetry.MeasureSince(time.Now(), "wasm", "contract", "ibc-recv-packet")
 	contractInfo, codeInfo, prefixStore, err := k.contractInstance(ctx, contractAddr)
 	if err != nil {
@@ -130,13 +133,34 @@ func (k Keeper) OnRecvPacket(
 	res, gasUsed, execErr := k.wasmVM.IBCPacketReceive(codeInfo.CodeHash, env, msg, prefixStore, cosmwasmAPI, querier, ctx.GasMeter(), gas, costJSONDeserialization)
 	k.consumeRuntimeGas(ctx, gasUsed)
 	if execErr != nil {
-		panic(execErr)
+		panic(execErr) // let contract fully abort IBC receive in certain case
 	}
-	if res.Err != "" { // handle error case as before https://github.com/CosmWasm/wasmvm/commit/c300106fe5c9426a495f8e10821e00a9330c56c6
-		return nil, errorsmod.Wrap(types.ErrExecuteFailed, res.Err)
+	if res.Err != "" {
+		// return error ACK with non-redacted contract message, state will be reverted
+		return channeltypes.Acknowledgement{
+			Response: &channeltypes.Acknowledgement_Error{Error: res.Err},
+		}, nil
 	}
 	// note submessage reply results can overwrite the `Acknowledgement` data
-	return k.handleContractResponse(ctx, contractAddr, contractInfo.IBCPortID, res.Ok.Messages, res.Ok.Attributes, res.Ok.Acknowledgement, res.Ok.Events)
+	data, err := k.handleContractResponse(ctx, contractAddr, contractInfo.IBCPortID, res.Ok.Messages, res.Ok.Attributes, res.Ok.Acknowledgement, res.Ok.Events)
+	if err != nil {
+		// submessage errors result in error ACK with state reverted. Error message is redacted
+		return nil, err
+	}
+	// success ACK, state will be committed
+	return ContractConfirmStateAck(data), nil
+}
+
+var _ ibcexported.Acknowledgement = ContractConfirmStateAck{}
+
+type ContractConfirmStateAck []byte
+
+func (w ContractConfirmStateAck) Success() bool {
+	return true // always commit state
+}
+
+func (w ContractConfirmStateAck) Acknowledgement() []byte {
+	return w
 }
 
 // OnAckPacket calls the contract to handle the "acknowledgement" data which can contain success or failure of a packet

x/wasm/keeper/relay_test.go

@@ -319,7 +319,7 @@ func TestOnRecvPacket(t *testing.T) {
 
 	specs := map[string]struct {
 		contractAddr       sdk.AccAddress
-		contractResp       *wasmvmtypes.IBCReceiveResponse
+		contractResp       *wasmvmtypes.IBCReceiveResult
 		contractErr        error
 		overwriteMessenger *wasmtesting.MockMessageHandler
 		mockReplyFn        func(codeID wasmvm.Checksum, env wasmvmtypes.Env, reply wasmvmtypes.Reply, store wasmvm.KVStore, goapi wasmvm.GoAPI, querier wasmvm.Querier, gasMeter wasmvm.GasMeter, gasLimit uint64, deserCost wasmvmtypes.UFraction) (*wasmvmtypes.Response, uint64, error)
@@ -329,26 +329,38 @@ func TestOnRecvPacket(t *testing.T) {
 		expPanic           bool
 		expEventTypes      []string
 	}{
-		"consume contract gas": {
+		"contract returns success ack": {
 			contractAddr:   example.Contract,
 			expContractGas: myContractGas,
-			contractResp: &wasmvmtypes.IBCReceiveResponse{
-				Acknowledgement: []byte("myAck"),
+			contractResp: &wasmvmtypes.IBCReceiveResult{
+				Ok: &wasmvmtypes.IBCReceiveResponse{Acknowledgement: []byte("myAck")},
 			},
 			expAck: []byte("myAck"),
 		},
-		"can return empty ack": {
+		"can return empty ack data": {
 			contractAddr:   example.Contract,
 			expContractGas: myContractGas,
-			contractResp:   &wasmvmtypes.IBCReceiveResponse{},
+			contractResp: &wasmvmtypes.IBCReceiveResult{
+				Ok: &wasmvmtypes.IBCReceiveResponse{},
+			},
 		},
-		"consume gas on error, ignore events + messages": {
+		"contract Err result converted to error Ack": {
 			contractAddr:   example.Contract,
 			expContractGas: myContractGas,
-			contractResp: &wasmvmtypes.IBCReceiveResponse{
-				Acknowledgement: []byte("myAck"),
-				Messages:        []wasmvmtypes.SubMsg{{ReplyOn: wasmvmtypes.ReplyNever, Msg: wasmvmtypes.CosmosMsg{Bank: &wasmvmtypes.BankMsg{}}}},
-				Attributes:      []wasmvmtypes.EventAttribute{{Key: "Foo", Value: "Bar"}},
+			contractResp: &wasmvmtypes.IBCReceiveResult{
+				Err: "my-error",
+			},
+			expAck: []byte(`{"error":"my-error"}`), // without error msg redaction
+		},
+		"contract aborts tx with error": {
+			contractAddr:   example.Contract,
+			expContractGas: myContractGas,
+			contractResp: &wasmvmtypes.IBCReceiveResult{
+				Ok: &wasmvmtypes.IBCReceiveResponse{
+					Acknowledgement: []byte("myAck"),
+					Messages:        []wasmvmtypes.SubMsg{{ReplyOn: wasmvmtypes.ReplyNever, Msg: wasmvmtypes.CosmosMsg{Bank: &wasmvmtypes.BankMsg{}}}},
+					Attributes:      []wasmvmtypes.EventAttribute{{Key: "Foo", Value: "Bar"}},
+				},
 			},
 			contractErr: errors.New("test, ignore"),
 			expPanic:    true,
@@ -356,18 +368,22 @@ func TestOnRecvPacket(t *testing.T) {
 		"dispatch contract messages on success": {
 			contractAddr:   example.Contract,
 			expContractGas: myContractGas,
-			contractResp: &wasmvmtypes.IBCReceiveResponse{
-				Acknowledgement: []byte("myAck"),
-				Messages:        []wasmvmtypes.SubMsg{{ReplyOn: wasmvmtypes.ReplyNever, Msg: wasmvmtypes.CosmosMsg{Bank: &wasmvmtypes.BankMsg{}}}, {ReplyOn: wasmvmtypes.ReplyNever, Msg: wasmvmtypes.CosmosMsg{Custom: json.RawMessage(`{"foo":"bar"}`)}}},
+			contractResp: &wasmvmtypes.IBCReceiveResult{
+				Ok: &wasmvmtypes.IBCReceiveResponse{
+					Acknowledgement: []byte("myAck"),
+					Messages:        []wasmvmtypes.SubMsg{{ReplyOn: wasmvmtypes.ReplyNever, Msg: wasmvmtypes.CosmosMsg{Bank: &wasmvmtypes.BankMsg{}}}, {ReplyOn: wasmvmtypes.ReplyNever, Msg: wasmvmtypes.CosmosMsg{Custom: json.RawMessage(`{"foo":"bar"}`)}}},
+				},
 			},
 			expAck: []byte("myAck"),
 		},
 		"emit contract attributes on success": {
 			contractAddr:   example.Contract,
 			expContractGas: myContractGas + 10,
-			contractResp: &wasmvmtypes.IBCReceiveResponse{
-				Acknowledgement: []byte("myAck"),
-				Attributes:      []wasmvmtypes.EventAttribute{{Key: "Foo", Value: "Bar"}},
+			contractResp: &wasmvmtypes.IBCReceiveResult{
+				Ok: &wasmvmtypes.IBCReceiveResponse{
+					Acknowledgement: []byte("myAck"),
+					Attributes:      []wasmvmtypes.EventAttribute{{Key: "Foo", Value: "Bar"}},
+				},
 			},
 			expEventTypes: []string{types.WasmModuleEventType},
 			expAck:        []byte("myAck"),
@@ -375,27 +391,31 @@ func TestOnRecvPacket(t *testing.T) {
 		"emit contract events on success": {
 			contractAddr:   example.Contract,
 			expContractGas: myContractGas + 46, // charge or custom event as well
-			contractResp: &wasmvmtypes.IBCReceiveResponse{
-				Acknowledgement: []byte("myAck"),
-				Attributes:      []wasmvmtypes.EventAttribute{{Key: "Foo", Value: "Bar"}},
-				Events: []wasmvmtypes.Event{{
-					Type: "custom",
-					Attributes: []wasmvmtypes.EventAttribute{{
-						Key:   "message",
-						Value: "to rudi",
+			contractResp: &wasmvmtypes.IBCReceiveResult{
+				Ok: &wasmvmtypes.IBCReceiveResponse{
+					Acknowledgement: []byte("myAck"),
+					Attributes:      []wasmvmtypes.EventAttribute{{Key: "Foo", Value: "Bar"}},
+					Events: []wasmvmtypes.Event{{
+						Type: "custom",
+						Attributes: []wasmvmtypes.EventAttribute{{
+							Key:   "message",
+							Value: "to rudi",
+						}},
 					}},
-				}},
+				},
 			},
 			expEventTypes: []string{types.WasmModuleEventType, "wasm-custom"},
 			expAck:        []byte("myAck"),
 		},
-		"messenger errors returned, events stored": {
+		"messenger errors returned": {
 			contractAddr:   example.Contract,
 			expContractGas: myContractGas + 10,
-			contractResp: &wasmvmtypes.IBCReceiveResponse{
-				Acknowledgement: []byte("myAck"),
-				Messages:        []wasmvmtypes.SubMsg{{ReplyOn: wasmvmtypes.ReplyNever, Msg: wasmvmtypes.CosmosMsg{Bank: &wasmvmtypes.BankMsg{}}}, {ReplyOn: wasmvmtypes.ReplyNever, Msg: wasmvmtypes.CosmosMsg{Custom: json.RawMessage(`{"foo":"bar"}`)}}},
-				Attributes:      []wasmvmtypes.EventAttribute{{Key: "Foo", Value: "Bar"}},
+			contractResp: &wasmvmtypes.IBCReceiveResult{
+				Ok: &wasmvmtypes.IBCReceiveResponse{
+					Acknowledgement: []byte("myAck"),
+					Messages:        []wasmvmtypes.SubMsg{{ReplyOn: wasmvmtypes.ReplyNever, Msg: wasmvmtypes.CosmosMsg{Bank: &wasmvmtypes.BankMsg{}}}, {ReplyOn: wasmvmtypes.ReplyNever, Msg: wasmvmtypes.CosmosMsg{Custom: json.RawMessage(`{"foo":"bar"}`)}}},
+					Attributes:      []wasmvmtypes.EventAttribute{{Key: "Foo", Value: "Bar"}},
+				},
 			},
 			overwriteMessenger: wasmtesting.NewErroringMessageHandler(),
 			expErr:             true,
@@ -404,9 +424,11 @@ func TestOnRecvPacket(t *testing.T) {
 		"submessage reply can overwrite ack data": {
 			contractAddr:   example.Contract,
 			expContractGas: myContractGas + storageCosts,
-			contractResp: &wasmvmtypes.IBCReceiveResponse{
-				Acknowledgement: []byte("myAck"),
-				Messages:        []wasmvmtypes.SubMsg{{ReplyOn: wasmvmtypes.ReplyAlways, Msg: wasmvmtypes.CosmosMsg{Bank: &wasmvmtypes.BankMsg{}}}},
+			contractResp: &wasmvmtypes.IBCReceiveResult{
+				Ok: &wasmvmtypes.IBCReceiveResponse{
+					Acknowledgement: []byte("myAck"),
+					Messages:        []wasmvmtypes.SubMsg{{ReplyOn: wasmvmtypes.ReplyAlways, Msg: wasmvmtypes.CosmosMsg{Bank: &wasmvmtypes.BankMsg{}}}},
+				},
 			},
 			mockReplyFn: func(codeID wasmvm.Checksum, env wasmvmtypes.Env, reply wasmvmtypes.Reply, store wasmvm.KVStore, goapi wasmvm.GoAPI, querier wasmvm.Querier, gasMeter wasmvm.GasMeter, gasLimit uint64, deserCost wasmvmtypes.UFraction) (*wasmvmtypes.Response, uint64, error) {
 				return &wasmvmtypes.Response{Data: []byte("myBetterAck")}, 0, nil
@@ -425,7 +447,7 @@ func TestOnRecvPacket(t *testing.T) {
 
 			m.IBCPacketReceiveFn = func(codeID wasmvm.Checksum, env wasmvmtypes.Env, msg wasmvmtypes.IBCPacketReceiveMsg, store wasmvm.KVStore, goapi wasmvm.GoAPI, querier wasmvm.Querier, gasMeter wasmvm.GasMeter, gasLimit uint64, deserCost wasmvmtypes.UFraction) (*wasmvmtypes.IBCReceiveResult, uint64, error) {
 				assert.Equal(t, myPacket, msg.Packet)
-				return &wasmvmtypes.IBCReceiveResult{Ok: spec.contractResp}, myContractGas * DefaultGasMultiplier, spec.contractErr
+				return spec.contractResp, myContractGas * DefaultGasMultiplier, spec.contractErr
 			}
 			if spec.mockReplyFn != nil {
 				m.ReplyFn = spec.mockReplyFn
@@ -462,17 +484,23 @@ func TestOnRecvPacket(t *testing.T) {
 				return
 			}
 			require.NoError(t, err)
-			require.Equal(t, spec.expAck, gotAck)
+			require.Equal(t, spec.expAck, gotAck.Acknowledgement())
 
 			// verify gas consumed
 			const storageCosts = sdk.Gas(2903)
 			assert.Equal(t, spec.expContractGas, ctx.GasMeter().GasConsumed()-before-storageCosts)
-			// verify msgs dispatched
-			require.Len(t, *capturedMsgs, len(spec.contractResp.Messages))
-			for i, m := range spec.contractResp.Messages {
-				assert.Equal(t, (*capturedMsgs)[i], m.Msg)
+
+			// verify msgs dispatched on success/ err response
+			if spec.contractResp.Err != "" {
+				assert.Empty(t, capturedMsgs) // no messages captured on err response
+				assert.Equal(t, spec.expEventTypes, stripTypes(ctx.EventManager().Events()))
+			} else {
+				require.Len(t, *capturedMsgs, len(spec.contractResp.Ok.Messages))
+				for i, m := range spec.contractResp.Ok.Messages {
+					assert.Equal(t, (*capturedMsgs)[i], m.Msg)
+				}
+				assert.Equal(t, spec.expEventTypes, stripTypes(ctx.EventManager().Events()))
 			}
-			assert.Equal(t, spec.expEventTypes, stripTypes(ctx.EventManager().Events()))
 		})
 	}
 }

x/wasm/types/events.go

@@ -1,5 +1,12 @@
 package types
 
+import (
+	"fmt"
+
+	sdk "github.com/cosmos/cosmos-sdk/types"
+	"github.com/cosmos/ibc-go/v7/modules/core/exported"
+)
+
 const (
 	// WasmModuleEventType is stored with any contract TX that returns non empty EventAttributes
 	WasmModuleEventType = "wasm"
@@ -17,8 +24,32 @@ const (
 	EventTypeGovContractResult      = "gov_contract_result"
 	EventTypeUpdateContractAdmin    = "update_contract_admin"
 	EventTypeUpdateCodeAccessConfig = "update_code_access_config"
+	EventTypePacketRecv             = "ibc_packet_received"
+	// add new types to IsAcceptedEventOnRecvPacketErrorAck
 )
 
+// EmitAcknowledgementEvent emits an event signalling a successful or failed acknowledgement and including the error
+// details if any.
+func EmitAcknowledgementEvent(ctx sdk.Context, contractAddr sdk.AccAddress, ack exported.Acknowledgement, err error) {
+	success := err == nil && (ack == nil || ack.Success())
+	attributes := []sdk.Attribute{
+		sdk.NewAttribute(sdk.AttributeKeyModule, ModuleName),
+		sdk.NewAttribute(AttributeKeyContractAddr, contractAddr.String()),
+		sdk.NewAttribute(AttributeKeyAckSuccess, fmt.Sprintf("%t", success)),
+	}
+
+	if err != nil {
+		attributes = append(attributes, sdk.NewAttribute(AttributeKeyAckError, err.Error()))
+	}
+
+	ctx.EventManager().EmitEvent(
+		sdk.NewEvent(
+			EventTypePacketRecv,
+			attributes...,
+		),
+	)
+}
+
 // event attributes returned from contract execution
 const (
 	AttributeReservedPrefix = "_"
@@ -31,4 +62,6 @@ const (
 	AttributeKeyNewAdmin            = "new_admin_address"
 	AttributeKeyCodePermission      = "code_permission"
 	AttributeKeyAuthorizedAddresses = "authorized_addresses"
+	AttributeKeyAckSuccess          = "success"
+	AttributeKeyAckError            = "error"
 )

x/wasm/types/exported_keepers.go

@@ -4,6 +4,7 @@ import (
 	wasmvmtypes "github.com/CosmWasm/wasmvm/types"
 	sdk "github.com/cosmos/cosmos-sdk/types"
 	capabilitytypes "github.com/cosmos/cosmos-sdk/x/capability/types"
+	ibcexported "github.com/cosmos/ibc-go/v7/modules/core/exported"
 )
 
 // ViewKeeper provides read only operations
@@ -100,7 +101,7 @@ type IBCContractKeeper interface {
 		ctx sdk.Context,
 		contractAddr sdk.AccAddress,
 		msg wasmvmtypes.IBCPacketReceiveMsg,
-	) ([]byte, error)
+	) (ibcexported.Acknowledgement, error)
 	OnAckPacket(
 		ctx sdk.Context,
 		contractAddr sdk.AccAddress,