diff --git a/packages/ethereum-contracts/test/foundry/agreements/AppCredit.t.sol b/packages/ethereum-contracts/test/foundry/agreements/AppCredit.t.sol
new file mode 100644
index 0000000000..bd09b879e7
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+++ b/packages/ethereum-contracts/test/foundry/agreements/AppCredit.t.sol
@@ -0,0 +1,174 @@
+// SPDX-License-Identifier: AGPLv3
+pragma solidity 0.8.23;
+
+import { console, console2 } from "forge-std/Test.sol";
+
+import { FoundrySuperfluidTester, SuperTokenV1Library } from "../FoundrySuperfluidTester.sol";
+import { ISuperfluid } from "../../../contracts/superfluid/Superfluid.sol";
+import { ISuperToken } from "../../../contracts/superfluid/SuperToken.sol";
+import { IConstantFlowAgreementV1 } from "../../../contracts/agreements/ConstantFlowAgreementV1.sol";
+import { CFASuperAppBase } from "../../../contracts/apps/CFASuperAppBase.sol";
+import { SuperTokenV1Library } from "../../../contracts/apps/SuperTokenV1Library.sol";
+
+using SuperTokenV1Library for ISuperToken;
+
+enum Modes {
+    DO_NOTHING,
+    FORWARD_HALF, // forward with half flowrate
+    FORWARD_ALL, // forward with full flowrate
+    MAX_OUT // forward with the max flowrate allowed by app credit granted
+}
+
+// helper free functions
+
+function modeToText(Modes mode) pure returns (string memory) {
+    if (mode == Modes.DO_NOTHING) return "DO_NOTHING";
+    if (mode == Modes.FORWARD_HALF) return "FORWARD_HALF";
+    if (mode == Modes.FORWARD_ALL) return "FORWARD_ALL";
+    if (mode == Modes.MAX_OUT) return "MAX_OUT";
+    return "UNKNOWN";
+}
+
+// right-shifts (deposit) amounts by 32 bits
+// this makes them more human-readable
+// (mitigation for the 32 bit clipping forcing a high floor)
+function scaleDiv32(uint256 deposit) pure returns (uint256) {
+    return deposit >> 32;
+}
+
+function toU256(int96 x) pure returns (uint256) {
+    return uint256(int256(x));
+}
+
+
+/// A SuperApp which forwards incoming streams partially, fully or maxing out the app credit
+contract ForwardingSuperApp is CFASuperAppBase {
+    ISuperToken public superToken;
+    address public receiver;
+    Modes public mode; // 0 do nothing, 1: forward half, 2: forward all, 3: max out
+    bytes public inCtx; // ctx when entering the callback
+    bytes public outCtx; // ctx when leaving the callback
+
+    constructor(ISuperfluid host_, ISuperToken superToken_, address receiver_) CFASuperAppBase(host_) {
+        selfRegister(true, true, true);
+        receiver = receiver_;
+        superToken = superToken_;
+    }
+
+    function isAcceptedSuperToken(ISuperToken superToken_) public view override returns (bool) {
+        return superToken_ == superToken;
+    }
+
+    function setMode(Modes mode_) public {
+        mode = mode_;
+    }
+
+    function onFlowCreated(ISuperToken, address sender, bytes calldata ctx)
+        internal override returns (bytes memory newCtx)
+    {
+        inCtx = ctx;
+        newCtx = ctx;
+        if (mode != Modes.DO_NOTHING) {
+            newCtx = superToken.createFlowWithCtx(receiver, _getOutFr(sender, newCtx), newCtx);
+        }
+        outCtx = newCtx;
+    }
+
+    function onFlowUpdated(ISuperToken, address sender, int96 /*prevFr*/, uint256 /*lastTs*/, bytes calldata ctx)
+        internal override returns (bytes memory newCtx)
+    {
+        inCtx = ctx;
+        newCtx = ctx;
+        if (mode != Modes.DO_NOTHING) {
+            newCtx = superToken.updateFlowWithCtx(receiver, _getOutFr(sender, newCtx), newCtx);
+        }
+        outCtx = newCtx;
+    }
+
+    function _getOutFr(address sender, bytes memory ctx) internal view returns(int96) {
+        (,int96 fr,,) = superToken.getFlowInfo(sender, address(this));
+
+        if (mode == Modes.FORWARD_HALF) {
+            return fr / 2; // half the incoming fr
+        } else if (mode == Modes.FORWARD_ALL) {
+            return fr; // full incoming fr
+        } else if (mode == Modes.MAX_OUT) {
+            ISuperfluid.Context memory c = HOST.decodeCtx(ctx);
+            IConstantFlowAgreementV1 cfa = IConstantFlowAgreementV1(address(HOST.getAgreementClass(CFAV1_TYPE)));
+            int96 maxFr = cfa.getMaximumFlowRateFromDeposit(superToken, c.appCreditGranted);
+            return maxFr; // max possible with deposit
+        }
+        return 0;
+    }
+}
+
+contract AppCreditTest is FoundrySuperfluidTester {
+    ForwardingSuperApp app;
+
+    constructor() FoundrySuperfluidTester(3) { }
+
+    function setUp() public override {
+        super.setUp();
+        app = new ForwardingSuperApp(sf.host, superToken, bob);
+    }
+
+    function testUpdateFlowWithMinDeposit() public {
+        _setMinimumDeposit(1e3 << 32); // 1k shifted by clipping
+        app.setMode(Modes.FORWARD_ALL);
+
+        vm.startPrank(alice);
+        superToken.createFlow(address(app), 4);
+        _printStatsExtended("#1: alice -> app createFlow");
+        // here as expected the deposit is 2 * minDeposit and owedDeposit is minDeposit
+        vm.stopPrank();
+
+        (,uint256 depositPreUpdate,,) = superToken.realtimeBalanceOfNow(alice);
+
+        vm.startPrank(alice);
+        superToken.updateFlow(address(app), 8);
+        _printStatsExtended("#2: alice -> app updateFlow");
+
+        (,uint256 depositPostUpdate,,) = superToken.realtimeBalanceOfNow(alice);
+        assertGe(depositPostUpdate, depositPreUpdate, "deposit shouldn't decrease");
+
+        vm.stopPrank();
+    }
+
+    // HELPERS
+
+    function _setMinimumDeposit(uint256 md) internal {
+        console2.log("Minimum deposit %d (raw: %d)", scaleDiv32(md), md);
+        vm.startPrank(address(sf.governance.owner()));
+        sf.governance.setSuperTokenMinimumDeposit(sf.host, superToken, md);
+        vm.stopPrank();
+    }
+
+    function _printStats(string memory tag) internal view {
+        console.log("===== %s | app mode %s | blocktime %d =====", tag, modeToText(app.mode()), block.timestamp);
+        (,int96 oFr, uint256 oDeposit, uint256 oOwedDeposit) = superToken.getFlowInfo(alice, address(app));
+        (,int96 iFr, uint256 iDeposit, uint256 iOwedDeposit) = superToken.getFlowInfo(address(app), bob);
+        console2.log("  alice -> app FR %d, deposit %d", toU256(oFr), scaleDiv32(oDeposit), scaleDiv32(oOwedDeposit));
+        console2.log("  app -> bob FR %d, deposit %d", toU256(iFr), scaleDiv32(iDeposit), scaleDiv32(iOwedDeposit));
+        _logAppCreditState(app.inCtx(),  "ctx in ");
+        _logAppCreditState(app.outCtx(), "ctx out");
+    }
+
+    function _printStatsExtended(string memory tag) internal view{
+        _printStats(tag);
+        _printAccStats(alice, "alice");
+        _printAccStats(address(app), "app");
+    }
+
+    function _printAccStats(address acc, string memory tag) internal view {
+        console.log("  == acc %s ==", tag);
+        (int256 availBal, uint256 deposit, uint256 owedDeposit,) = superToken.realtimeBalanceOfNow(acc);
+        console2.log("  realtimeBalance %d", availBal);
+        console2.log("  deposit", scaleDiv32(deposit), scaleDiv32(owedDeposit));
+    }
+
+    function _logAppCreditState(bytes memory ctx, string memory tag) internal view {
+        ISuperfluid.Context memory c = sf.host.decodeCtx(ctx);
+        console2.log("  APP %s: credit granted|used",
+            tag, scaleDiv32(c.appCreditGranted), scaleDiv32(uint256(c.appCreditUsed)));
+    }
+}