diff --git a/x/dex/keeper/abci/begin_block_new_block_test.go b/x/dex/keeper/abci/begin_block_new_block_test.go
index fe9ba72516..fa6d1a02fe 100644
--- a/x/dex/keeper/abci/begin_block_new_block_test.go
+++ b/x/dex/keeper/abci/begin_block_new_block_test.go
@@ -1,12 +1,17 @@
 package abci_test
 
 import (
+	"context"
 	"testing"
+	"time"
 
-	wasmkeeper "github.com/CosmWasm/wasmd/x/wasm/keeper"
 	sdk "github.com/cosmos/cosmos-sdk/types"
-	"github.com/sei-protocol/sei-chain/x/dex/keeper"
+	keepertest "github.com/sei-protocol/sei-chain/testutil/keeper"
+	dexcache "github.com/sei-protocol/sei-chain/x/dex/cache"
 	"github.com/sei-protocol/sei-chain/x/dex/keeper/abci"
+	"github.com/sei-protocol/sei-chain/x/dex/types"
+	dexutils "github.com/sei-protocol/sei-chain/x/dex/utils"
+	tmproto "github.com/tendermint/tendermint/proto/tendermint/types"
 )
 
 const (
@@ -17,9 +22,15 @@ const (
 func TestHandleBBNewBlock(t *testing.T) {
 	// this test only ensures that HandleBBNewBlock doesn't crash. The actual logic
 	// is tested in module_test.go where an actual wasm file is deployed and invoked.
-	wasmkeeper.TestingStakeParams.MinCommissionRate = sdk.NewDecWithPrec(5, 2)
-	ctx, wasmkeepers := wasmkeeper.CreateTestInput(t, false, SupportedFeatures)
-	dexKeeper := keeper.Keeper{WasmKeeper: *wasmkeepers.WasmKeeper}
-	wrapper := abci.KeeperWrapper{Keeper: &dexKeeper}
+	testApp := keepertest.TestApp()
+	ctx := testApp.BaseApp.NewContext(false, tmproto.Header{Time: time.Now()})
+	ctx = ctx.WithContext(context.WithValue(ctx.Context(), dexutils.DexMemStateContextKey, dexcache.NewMemState(testApp.GetKey(types.StoreKey))))
+	keeper := testApp.DexKeeper
+	ctx = ctx.WithGasMeter(sdk.NewInfiniteGasMeter())
+	keeper.SetContract(ctx, &types.ContractInfoV2{
+		ContractAddr: TestContract,
+		RentBalance:  100000000,
+	})
+	wrapper := abci.KeeperWrapper{Keeper: &keeper}
 	wrapper.HandleBBNewBlock(ctx, TestContract, 1)
 }
diff --git a/x/dex/keeper/utils/wasm.go b/x/dex/keeper/utils/wasm.go
index dd776fb32b..583c608e84 100644
--- a/x/dex/keeper/utils/wasm.go
+++ b/x/dex/keeper/utils/wasm.go
@@ -39,18 +39,33 @@ func sudo(sdkCtx sdk.Context, k *keeper.Keeper, contractAddress []byte, wasmMsg
 	// Measure the time it takes to execute the contract in WASM
 	defer metrics.MeasureSudoExecutionDuration(time.Now(), msgType)
 	// set up a tmp context to prevent race condition in reading gas consumed
-	tmpCtx := sdkCtx.WithGasMeter(sdk.NewInfiniteGasMeter())
-	data, err := k.WasmKeeper.Sudo(
-		tmpCtx, contractAddress, wasmMsg,
-	)
+	// Note that the limit will effectively serve as a soft limit since it's
+	// possible for the actual computation to go above the specified limit, but
+	// the associated contract would be charged corresponding rent.
+	tmpCtx := sdkCtx.WithGasMeter(sdk.NewGasMeter(sdkCtx.GasMeter().Limit()))
+	data, err := sudoWithoutOutOfGasPanic(tmpCtx, k, contractAddress, wasmMsg)
 	gasConsumed := tmpCtx.GasMeter().GasConsumed()
-	sdkCtx.GasMeter().ConsumeGas(gasConsumed, "sudo")
+	if gasConsumed > 0 {
+		sdkCtx.GasMeter().ConsumeGas(gasConsumed, "sudo")
+	}
 	if hasErrInstantiatingWasmModuleDueToCPUFeature(err) {
 		panic(utils.DecorateHardFailError(err))
 	}
 	return data, gasConsumed, err
 }
 
+func sudoWithoutOutOfGasPanic(ctx sdk.Context, k *keeper.Keeper, contractAddress []byte, wasmMsg []byte) ([]byte, error) {
+	defer func() {
+		if err := recover(); err != nil {
+			// only propagate panic if the error is out of gas
+			if _, ok := err.(sdk.ErrorOutOfGas); !ok {
+				panic(err)
+			}
+		}
+	}()
+	return k.WasmKeeper.Sudo(ctx, contractAddress, wasmMsg)
+}
+
 func hasErrInstantiatingWasmModuleDueToCPUFeature(err error) bool {
 	if err == nil {
 		return false
diff --git a/x/oracle/simulation/operations.go b/x/oracle/simulation/operations.go
index 3988c4b164..2028e73625 100644
--- a/x/oracle/simulation/operations.go
+++ b/x/oracle/simulation/operations.go
@@ -65,7 +65,7 @@ func WeightedOperations(
 }
 
 // SimulateMsgAggregateExchangeRateVote generates a MsgAggregateExchangeRateVote with random values.
-//nolint: funlen
+// nolint: funlen
 func SimulateMsgAggregateExchangeRateVote(ak types.AccountKeeper, bk types.BankKeeper, k keeper.Keeper) simtypes.Operation {
 	return func(
 		r *rand.Rand, app *baseapp.BaseApp, ctx sdk.Context, accs []simtypes.Account, chainID string,
@@ -122,7 +122,7 @@ func SimulateMsgAggregateExchangeRateVote(ak types.AccountKeeper, bk types.BankK
 }
 
 // SimulateMsgDelegateFeedConsent generates a MsgDelegateFeedConsent with random values.
-//nolint: funlen
+// nolint: funlen
 func SimulateMsgDelegateFeedConsent(ak types.AccountKeeper, bk types.BankKeeper, k keeper.Keeper) simtypes.Operation {
 	return func(
 		r *rand.Rand, app *baseapp.BaseApp, ctx sdk.Context, accs []simtypes.Account, chainID string,