diff --git a/tests/e2e/e2e.go b/tests/e2e/e2e.go
index cab70123..a8d24ff9 100644
--- a/tests/e2e/e2e.go
+++ b/tests/e2e/e2e.go
@@ -45,7 +45,7 @@ func NewIBCCoordinator(t *testing.T, n int, opts ...[]wasmkeeper.Option) *ibctes
 	)
 }
 
-func submitGovProposal(t *testing.T, chain *ibctesting.TestChain, msgs ...sdk.Msg) uint64 {
+func submitGovProposal(t *testing.T, chain *TestChain, msgs ...sdk.Msg) uint64 {
 	chainApp := chain.App.(*app.MeshApp)
 	govParams := chainApp.GovKeeper.GetParams(chain.GetContext())
 	govMsg, err := govv1.NewMsgSubmitProposal(msgs, govParams.MinDeposit, chain.SenderAccount.GetAddress().String(), "", "my title", "my summary")
@@ -57,7 +57,7 @@ func submitGovProposal(t *testing.T, chain *ibctesting.TestChain, msgs ...sdk.Ms
 	return id
 }
 
-func voteAndPassGovProposal(t *testing.T, chain *ibctesting.TestChain, proposalID uint64) {
+func voteAndPassGovProposal(t *testing.T, chain *TestChain, proposalID uint64) {
 	vote := govv1.NewMsgVote(chain.SenderAccount.GetAddress(), proposalID, govv1.OptionYes, "testing")
 	_, err := chain.SendMsgs(vote)
 	require.NoError(t, err)
@@ -67,14 +67,14 @@ func voteAndPassGovProposal(t *testing.T, chain *ibctesting.TestChain, proposalI
 
 	coord := chain.Coordinator
 	coord.IncrementTimeBy(*govParams.VotingPeriod)
-	coord.CommitBlock(chain)
+	coord.CommitBlock(chain.IBCTestChain())
 
 	rsp, err := chainApp.GovKeeper.Proposal(sdk.WrapSDKContext(chain.GetContext()), &govv1.QueryProposalRequest{ProposalId: proposalID})
 	require.NoError(t, err)
 	require.Equal(t, rsp.Proposal.Status, govv1.ProposalStatus_PROPOSAL_STATUS_PASSED)
 }
 
-func InstantiateContract(t *testing.T, chain *ibctesting.TestChain, codeID uint64, initMsg []byte, funds ...sdk.Coin) sdk.AccAddress {
+func InstantiateContract(t *testing.T, chain *TestChain, codeID uint64, initMsg []byte, funds ...sdk.Coin) sdk.AccAddress {
 	instantiateMsg := &wasmtypes.MsgInstantiateContract{
 		Sender: chain.SenderAccount.GetAddress().String(),
 		Admin:  chain.SenderAccount.GetAddress().String(),
@@ -96,8 +96,8 @@ func InstantiateContract(t *testing.T, chain *ibctesting.TestChain, codeID uint6
 
 type example struct {
 	Coordinator      *ibctesting.Coordinator
-	ConsumerChain    *ibctesting.TestChain
-	ProviderChain    *ibctesting.TestChain
+	ConsumerChain    *TestChain
+	ProviderChain    *TestChain
 	ConsumerApp      *app.MeshApp
 	ProviderApp      *app.MeshApp
 	IbcPath          *ibctesting.Path
@@ -112,8 +112,8 @@ func setupExampleChains(t *testing.T) example {
 	consChain := coord.GetChain(ibctesting2.GetChainID(2))
 	return example{
 		Coordinator:      coord,
-		ConsumerChain:    consChain,
-		ProviderChain:    provChain,
+		ConsumerChain:    NewTestChain(t, consChain),
+		ProviderChain:    NewTestChain(t, provChain),
 		ConsumerApp:      consChain.App.(*app.MeshApp),
 		ProviderApp:      provChain.App.(*app.MeshApp),
 		IbcPath:          ibctesting.NewPath(consChain, provChain),
@@ -138,7 +138,7 @@ func setupMeshSecurity(t *testing.T, x example) (*TestConsumerClient, ConsumerCo
 
 	// setup ibc control path: consumer -> provider (direction matters)
 	x.IbcPath.EndpointB.ChannelConfig = &ibctesting2.ChannelConfig{
-		PortID: wasmkeeper.PortIDForContract(providerContracts.externalStaking),
+		PortID: wasmkeeper.PortIDForContract(providerContracts.ExternalStaking),
 		Order:  types2.UNORDERED,
 	}
 	x.IbcPath.EndpointA.ChannelConfig = &ibctesting2.ChannelConfig{
diff --git a/tests/e2e/stake_vesting_test.go b/tests/e2e/stake_vesting_test.go
new file mode 100644
index 00000000..217865f2
--- /dev/null
+++ b/tests/e2e/stake_vesting_test.go
@@ -0,0 +1,61 @@
+package e2e
+
+import (
+	"fmt"
+	"testing"
+
+	"github.com/stretchr/testify/assert"
+
+	"github.com/cosmos/cosmos-sdk/crypto/keys/secp256k1"
+	sdk "github.com/cosmos/cosmos-sdk/types"
+	authtypes "github.com/cosmos/cosmos-sdk/x/auth/types"
+)
+
+func TestStakeVestingTokenScenario1(t *testing.T) {
+	// Slashing scenario:
+	// Permanent lock vesting account should be able to bond in vault contract
+	// Unbond the amount, balance should keep being locked
+	x := setupExampleChains(t)
+	_, _, providerCli := setupMeshSecurity(t, x)
+
+	// Generate vesting address
+	vestingPrivKey := secp256k1.GenPrivKey()
+	vestingBacc := authtypes.NewBaseAccount(vestingPrivKey.PubKey().Address().Bytes(), vestingPrivKey.PubKey(), uint64(19), 0)
+
+	vestingBalance := sdk.NewCoin(x.ProviderDenom, sdk.NewInt(100000000))
+	providerCli.MustCreatePermanentLockedAccount(vestingBacc.GetAddress().String(), vestingBalance)
+
+	balance := x.ProviderChain.Balance(vestingBacc.GetAddress(), x.ProviderDenom)
+	assert.Equal(t, balance, vestingBalance)
+
+	// Exec contract by vesting account
+	execMsg := fmt.Sprintf(`{"bond":{"amount":{"denom":"%s", "amount":"100000000"}}}`, x.ProviderDenom)
+	providerCli.MustExecVaultWithSigner(vestingPrivKey, vestingBacc, execMsg)
+
+	balance = x.ProviderChain.Balance(providerCli.Contracts.Vault, x.ProviderDenom)
+	assert.Equal(t, balance, vestingBalance)
+
+	assert.Equal(t, 100_000_000, providerCli.QuerySpecificAddressVaultBalance(vestingBacc.GetAddress().String()))
+
+	// Try to exec msg bond again, should fail
+	err := providerCli.ExecVaultWithSigner(vestingPrivKey, vestingBacc, execMsg)
+	assert.Error(t, err)
+	assert.Contains(t, err.Error(), "dispatch: submessages: failed to delegate")
+
+	// Make sure vault balance doesn't change
+	assert.Equal(t, 100_000_000, providerCli.QuerySpecificAddressVaultBalance(vestingBacc.GetAddress().String()))
+
+	// Unbond vault
+	execMsg = fmt.Sprintf(`{"unbond":{"amount":{"denom":"%s", "amount": "30000000"}}}`, x.ProviderDenom)
+	providerCli.MustExecVaultWithSigner(vestingPrivKey, vestingBacc, execMsg)
+
+	vestingBalance = sdk.NewCoin(x.ProviderDenom, sdk.NewInt(30000000))
+
+	balance = x.ProviderChain.Balance(vestingBacc.GetAddress(), x.ProviderDenom)
+	assert.Equal(t, balance, vestingBalance)
+
+	// Vesting account is still locked
+	err = providerCli.BankSendWithSigner(vestingPrivKey, vestingBacc, x.ProviderChain.SenderAccount.GetAddress().String(), vestingBalance)
+	assert.Error(t, err)
+	assert.Contains(t, err.Error(), "insufficient funds")
+}
diff --git a/tests/e2e/test_client.go b/tests/e2e/test_client.go
index a67917de..56045e91 100644
--- a/tests/e2e/test_client.go
+++ b/tests/e2e/test_client.go
@@ -15,7 +15,11 @@ import (
 	"cosmossdk.io/math"
 
 	"github.com/cosmos/cosmos-sdk/baseapp"
+	cryptotypes "github.com/cosmos/cosmos-sdk/crypto/types"
 	sdk "github.com/cosmos/cosmos-sdk/types"
+	authtypes "github.com/cosmos/cosmos-sdk/x/auth/types"
+	vestingtypes "github.com/cosmos/cosmos-sdk/x/auth/vesting/types"
+	banktypes "github.com/cosmos/cosmos-sdk/x/bank/types"
 
 	"github.com/osmosis-labs/mesh-security-sdk/demo/app"
 	"github.com/osmosis-labs/mesh-security-sdk/x/meshsecurity"
@@ -54,7 +58,7 @@ func (q QueryResponse) Array(key string) []QueryResponse {
 	return result
 }
 
-func Querier(t *testing.T, chain *ibctesting.TestChain) func(contract string, query Query) QueryResponse {
+func Querier(t *testing.T, chain *TestChain) func(contract string, query Query) QueryResponse {
 	return func(contract string, query Query) QueryResponse {
 		qRsp := make(map[string]any)
 		err := chain.SmartQuery(contract, query, &qRsp)
@@ -65,20 +69,68 @@ func Querier(t *testing.T, chain *ibctesting.TestChain) func(contract string, qu
 
 type TestProviderClient struct {
 	t         *testing.T
-	chain     *ibctesting.TestChain
-	contracts ProviderContracts
+	chain     *TestChain
+	Contracts ProviderContracts
 }
 
-func NewProviderClient(t *testing.T, chain *ibctesting.TestChain) *TestProviderClient {
+type TestChain struct {
+	*ibctesting.TestChain
+	t *testing.T
+}
+
+func NewTestChain(t *testing.T, chain *ibctesting.TestChain) *TestChain {
+	return &TestChain{
+		t:         t,
+		TestChain: chain,
+	}
+}
+
+func (tc *TestChain) IBCTestChain() *ibctesting.TestChain {
+	return tc.TestChain
+}
+
+func NewProviderClient(t *testing.T, chain *TestChain) *TestProviderClient {
 	return &TestProviderClient{t: t, chain: chain}
 }
 
+func (tc *TestChain) SendMsgsWithSigner(privKey cryptotypes.PrivKey, signer *authtypes.BaseAccount, msgs ...sdk.Msg) (*sdk.Result, error) {
+	// ensure the chain has the latest time
+	tc.Coordinator.UpdateTimeForChain(tc.TestChain)
+	_, r, gotErr := app.SignAndDeliverWithoutCommit(
+		tc.t,
+		tc.TxConfig,
+		tc.App.GetBaseApp(),
+		msgs,
+		tc.DefaultMsgFees,
+		tc.ChainID,
+		[]uint64{signer.GetAccountNumber()},
+		[]uint64{signer.GetSequence()},
+		privKey,
+	)
+
+	// NextBlock calls app.Commit()
+	tc.NextBlock()
+
+	// increment sequence for successful and failed transaction execution
+	require.NoError(tc.t, signer.SetSequence(signer.GetSequence()+1))
+	tc.Coordinator.IncrementTime()
+
+	if gotErr != nil {
+		return nil, gotErr
+	}
+
+	tc.CaptureIBCEvents(r.Events)
+
+	return r, nil
+}
+
 type ProviderContracts struct {
-	vault           sdk.AccAddress
-	externalStaking sdk.AccAddress
+	Vault           sdk.AccAddress
+	ExternalStaking sdk.AccAddress
 }
 
-func (p *TestProviderClient) BootstrapContracts(provApp *app.MeshApp, connId, portID string) ProviderContracts {	var (
+func (p *TestProviderClient) BootstrapContracts(provApp *app.MeshApp, connId, portID string) ProviderContracts {
+	var (
 		unbondingPeriod           = 21 * 24 * 60 * 60 // 21 days - make configurable?
 		localSlashRatioDoubleSign = "0.20"
 		localSlashRatioOffline    = "0.10"
@@ -106,19 +158,53 @@ func (p *TestProviderClient) BootstrapContracts(provApp *app.MeshApp, connId, po
 	externalStakingContract := InstantiateContract(p.t, p.chain, extStakingCodeID, initMsg)
 
 	r := ProviderContracts{
-		vault:           vaultContract,
-		externalStaking: externalStakingContract,
+		Vault:           vaultContract,
+		ExternalStaking: externalStakingContract,
 	}
-	p.contracts = r
+	p.Contracts = r
 	return r
 }
 
+func (p TestProviderClient) MustCreatePermanentLockedAccount(acc string, coins ...sdk.Coin) *sdk.Result {
+	rsp, err := p.chain.SendMsgs(&vestingtypes.MsgCreatePermanentLockedAccount{
+		FromAddress: p.chain.SenderAccount.GetAddress().String(),
+		ToAddress:   acc,
+		Amount:      coins,
+	})
+	require.NoError(p.t, err)
+	return rsp
+}
+
+func (p TestProviderClient) BankSendWithSigner(privKey cryptotypes.PrivKey, signer *authtypes.BaseAccount, to string, coins ...sdk.Coin) error {
+	_, err := p.chain.SendMsgsWithSigner(
+		privKey,
+		signer,
+		&banktypes.MsgSend{
+			FromAddress: signer.GetAddress().String(),
+			ToAddress:   to,
+			Amount:      coins,
+		},
+	)
+	return err
+}
+
 func (p TestProviderClient) MustExecVault(payload string, funds ...sdk.Coin) *sdk.Result {
-	return p.mustExec(p.contracts.vault, payload, funds)
+	return p.mustExec(p.Contracts.Vault, payload, funds)
+}
+
+func (p TestProviderClient) MustExecVaultWithSigner(privKey cryptotypes.PrivKey, signer *authtypes.BaseAccount, payload string, funds ...sdk.Coin) *sdk.Result {
+	rsp, err := p.ExecWithSigner(privKey, signer, p.Contracts.Vault, payload, funds...)
+	require.NoError(p.t, err)
+	return rsp
+}
+
+func (p TestProviderClient) ExecVaultWithSigner(privKey cryptotypes.PrivKey, signer *authtypes.BaseAccount, payload string, funds ...sdk.Coin) error {
+	_, err := p.ExecWithSigner(privKey, signer, p.Contracts.Vault, payload, funds...)
+	return err
 }
 
 func (p TestProviderClient) MustExecExtStaking(payload string, funds ...sdk.Coin) *sdk.Result {
-	return p.mustExec(p.contracts.externalStaking, payload, funds)
+	return p.mustExec(p.Contracts.ExternalStaking, payload, funds)
 }
 
 func (p TestProviderClient) mustExec(contract sdk.AccAddress, payload string, funds []sdk.Coin) *sdk.Result {
@@ -137,8 +223,22 @@ func (p TestProviderClient) Exec(contract sdk.AccAddress, payload string, funds
 	return rsp, err
 }
 
+func (p TestProviderClient) ExecWithSigner(privKey cryptotypes.PrivKey, signer *authtypes.BaseAccount, contract sdk.AccAddress, payload string, funds ...sdk.Coin) (*sdk.Result, error) {
+	rsp, err := p.chain.SendMsgsWithSigner(
+		privKey,
+		signer,
+		&wasmtypes.MsgExecuteContract{
+			Sender:   signer.GetAddress().String(),
+			Contract: contract.String(),
+			Msg:      []byte(payload),
+			Funds:    funds,
+		},
+	)
+	return rsp, err
+}
+
 func (p TestProviderClient) MustFailExecVault(payload string, funds ...sdk.Coin) error {
-	rsp, err := p.Exec(p.contracts.vault, payload, funds...)
+	rsp, err := p.Exec(p.Contracts.Vault, payload, funds...)
 	require.Error(p.t, err, "Response: %v", rsp)
 	return err
 }
@@ -149,10 +249,10 @@ func (p TestProviderClient) MustExecStakeRemote(val string, amt sdk.Coin) {
 
 func (p TestProviderClient) ExecStakeRemote(val string, amt sdk.Coin) error {
 	payload := fmt.Sprintf(`{"stake_remote":{"contract":"%s", "amount": {"denom":%q, "amount":"%s"}, "msg":%q}}`,
-		p.contracts.externalStaking.String(),
+		p.Contracts.ExternalStaking.String(),
 		amt.Denom, amt.Amount.String(),
 		base64.StdEncoding.EncodeToString([]byte(fmt.Sprintf(`{"validator": "%s"}`, val))))
-	_, err := p.Exec(p.contracts.vault, payload)
+	_, err := p.Exec(p.Contracts.Vault, payload)
 	return err
 }
 
@@ -168,11 +268,11 @@ func (p TestProviderClient) QueryExtStakingAmount(user, validator string) int {
 }
 
 func (p TestProviderClient) QueryExtStaking(q Query) QueryResponse {
-	return Querier(p.t, p.chain)(p.contracts.externalStaking.String(), q)
+	return Querier(p.t, p.chain)(p.Contracts.ExternalStaking.String(), q)
 }
 
 func (p TestProviderClient) QueryVault(q Query) QueryResponse {
-	return Querier(p.t, p.chain)(p.contracts.vault.String(), q)
+	return Querier(p.t, p.chain)(p.Contracts.Vault.String(), q)
 }
 
 type HighLowType struct {
@@ -210,6 +310,16 @@ func (p TestProviderClient) QueryVaultBalance() int {
 	return b
 }
 
+func (p TestProviderClient) QuerySpecificAddressVaultBalance(address string) int {
+	qRsp := p.QueryVault(Query{
+		"account_details": {"account": address},
+	})
+	require.NotEmpty(p.t, qRsp["bonded"], qRsp)
+	b, err := strconv.Atoi(qRsp["bonded"].(string))
+	require.NoError(p.t, err)
+	return b
+}
+
 func (p TestProviderClient) QueryMaxLien() int {
 	qRsp := p.QueryVault(Query{
 		"account_details": {"account": p.chain.SenderAccount.GetAddress().String()},
@@ -228,12 +338,12 @@ func (p TestProviderClient) QuerySlashableAmount() int {
 
 type TestConsumerClient struct {
 	t         *testing.T
-	chain     *ibctesting.TestChain
+	chain     *TestChain
 	contracts ConsumerContract
 	app       *app.MeshApp
 }
 
-func NewConsumerClient(t *testing.T, chain *ibctesting.TestChain) *TestConsumerClient {
+func NewConsumerClient(t *testing.T, chain *TestChain) *TestConsumerClient {
 	return &TestConsumerClient{t: t, chain: chain, app: chain.App.(*app.MeshApp)}
 }
 
@@ -278,7 +388,7 @@ func (p *TestConsumerClient) ExecNewEpoch() {
 	execHeight, ok := p.app.MeshSecKeeper.GetNextScheduledTaskHeight(p.chain.GetContext(), types.SchedulerTaskHandleEpoch, p.contracts.staking)
 	require.True(p.t, ok)
 	if ch := uint64(p.chain.GetContext().BlockHeight()); ch < execHeight {
-		p.chain.Coordinator.CommitNBlocks(p.chain, execHeight-ch)
+		p.chain.Coordinator.CommitNBlocks(p.chain.IBCTestChain(), execHeight-ch)
 	}
 	rsp := p.chain.NextBlock()
 	// ensure capture events do not contain a contract error
diff --git a/tests/e2e/valset_test.go b/tests/e2e/valset_test.go
index 9d5201d3..ebc3ac8f 100644
--- a/tests/e2e/valset_test.go
+++ b/tests/e2e/valset_test.go
@@ -165,12 +165,12 @@ func undelegate(t *testing.T, operatorKeys *secp256k1.PrivKey, amount sdkmath.In
 	x.ConsumerChain.NextBlock()
 }
 
-func jailValidator(t *testing.T, consAddr sdk.ConsAddress, coordinator *wasmibctesting.Coordinator, chain *wasmibctesting.TestChain, app *app.MeshApp) {
+func jailValidator(t *testing.T, consAddr sdk.ConsAddress, coordinator *wasmibctesting.Coordinator, chain *TestChain, app *app.MeshApp) {
 	ctx := chain.GetContext()
 	signInfo, found := app.SlashingKeeper.GetValidatorSigningInfo(ctx, consAddr)
 	require.True(t, found)
 	// bump height to be > block window
-	coordinator.CommitNBlocks(chain, 100)
+	coordinator.CommitNBlocks(chain.IBCTestChain(), 100)
 	ctx = chain.GetContext()
 	signInfo.MissedBlocksCounter = app.SlashingKeeper.MinSignedPerWindow(ctx)
 	app.SlashingKeeper.SetValidatorSigningInfo(ctx, consAddr, signInfo)
@@ -180,7 +180,7 @@ func jailValidator(t *testing.T, consAddr sdk.ConsAddress, coordinator *wasmibct
 	chain.NextBlock()
 }
 
-func unjailValidator(t *testing.T, consAddr sdk.ConsAddress, operatorKeys *secp256k1.PrivKey, coordinator *wasmibctesting.Coordinator, chain *wasmibctesting.TestChain, app *app.MeshApp) {
+func unjailValidator(t *testing.T, consAddr sdk.ConsAddress, operatorKeys *secp256k1.PrivKey, coordinator *wasmibctesting.Coordinator, chain *TestChain, app *app.MeshApp) {
 	// move clock
 	aa, ok := app.SlashingKeeper.GetValidatorSigningInfo(chain.GetContext(), consAddr)
 	require.True(t, ok)
@@ -193,7 +193,7 @@ func unjailValidator(t *testing.T, consAddr sdk.ConsAddress, operatorKeys *secp2
 	chain.NextBlock()
 }
 
-func CreateNewValidator(t *testing.T, operatorKeys *secp256k1.PrivKey, chain *wasmibctesting.TestChain, power int64) mock.PV {
+func CreateNewValidator(t *testing.T, operatorKeys *secp256k1.PrivKey, chain *TestChain, power int64) mock.PV {
 	privVal := mock.NewPV()
 	bondCoin := sdk.NewCoin(sdk.DefaultBondDenom, sdk.TokensFromConsensusPower(power, sdk.DefaultPowerReduction))
 	description := stakingtypes.NewDescription("my new val", "", "", "", "")
diff --git a/x/meshsecurityprovider/keeper/keeper.go b/x/meshsecurityprovider/keeper/keeper.go
index ed90d183..d2260f61 100644
--- a/x/meshsecurityprovider/keeper/keeper.go
+++ b/x/meshsecurityprovider/keeper/keeper.go
@@ -1,6 +1,8 @@
 package keeper
 
 import (
+	"fmt"
+
 	"github.com/cometbft/cometbft/libs/log"
 
 	wasmkeeper "github.com/CosmWasm/wasmd/x/wasm/keeper"
@@ -96,6 +98,7 @@ func (k Keeper) HandleBondMsg(ctx sdk.Context, actor sdk.AccAddress, bondMsg *co
 	if actor.String() != k.VaultAddress(ctx) {
 		return nil, nil, sdkerrors.ErrUnauthorized.Wrapf("contract has no permission for mesh security operations")
 	}
+	fmt.Println("bond  msg: ", bondMsg)
 
 	coin, err := wasmkeeper.ConvertWasmCoinToSdkCoin(bondMsg.Amount)
 	if err != nil {
@@ -112,6 +115,7 @@ func (k Keeper) HandleBondMsg(ctx sdk.Context, actor sdk.AccAddress, bondMsg *co
 		return nil, nil, err
 	}
 
+	fmt.Println("passssssssssssssssssssssssssssssssssssss")
 	return []sdk.Event{sdk.NewEvent(
 		types.EventTypeBond,
 		sdk.NewAttribute(sdk.AttributeKeyModule, types.ModuleName),