How To Use The Lybra V2 Testnet

TL;DR

• Go here to visit the Lybra V2 Testnet, which is now live.
• Click here to jump straight to the guide on how to mint eUSD using a Rebase LST & convert to peUSD (the new omnichain version of eUSD)
• Click here to jump straight to the guide on how to mint peUSD using a non-Rebase LST & redeem your peUSD for LSTs
• Head to our Zealy questboard to discover and complete Testnet quests and earn rewards

Introduction

The testnet for Lybra V2 is now live! You can give it a spin at:

https://v2-test.lybra.finance/

Lybra V2 brings a host of new functionality to the Lybra protocol, including omnichain functionality, an expanded range of LST options as collateral, advances in fund security, and new mechanisms for upholding the eUSD peg, whilst supporting the value of LBR.

This article provides a simple guide to some of the features you can start playing around with on the Testnet. We’ll be focusing on showing you how to try out minting peUSD — which is the new, omnichain version of eUSD, and also how to start using new LST options such as Binance’s WBETH as collateral.

eUSD is the world’s first decentralized, interest-bearing stablecoin, which offers typical APYs of 8%. It can be minted on the Lybra protocol using LSTs (Liquid Staking Tokens) as collateral. Meanwhile, peUSD is the omnichain version of eUSD, which is being introduced on V2 to allow you to spend your stablecoin holdings on a variety of different chains, starting with Arbitrum, to dramatically expand their utility.

On Lybra V2, there will be two different ways to mint eUSD and peUSD, depending on which type of LST you use.

If you use a Rebase LST such as Lido’s stETH as your collateral, then you can mint eUSD directly, then convert it into peUSD to spend on chains other than the Ethereum Mainnet. When peUSD is minted this way, you will continue to earn interest on your underlying eUSD collateral even whilst you are spending your peUSD.

If you use a Non-Rebase LST such as Rocket Pool’s rETH, Binance’s WBETH, or Swell’s swETH, then you can mint peUSD directly. When peUSD is minted this way, you will not earn interest on the stablecoin itself, but rather your yield will automatically accrue via the underlying LST being used as collateral, which will continue to increase in value even as you spend your peUSD.

This guide will show you how you can mint eUSD using a Rebase LST & then convert it to peUSD. Then it will show you how you can mint peUSD using a Non-Rebase LST & redeem your peUSD for LSTs.

So, let’s dive in…

JOURNEY 1: Mint eUSD Using A Rebase LST & Convert To peUSD

NOTE: To claim Rewards for completing this journey, visit: https://zealy.io/c/lybrafinance/questboard/9369c30f-89c0-4f19-932b-ff26d7e59542

We’ll start by showing you how you can mint eUSD using Rebase LSTs and convert that eUSD to peUSD to unlock omnichain functionality. To do this, you simply need to connect your wallet, mint some eUSD using stETH (Lido’s Liquid Staking Token) and then convert to peUSD.

Here is a step-by-step guide with screenshots, explaining how to do this:

Step 1: Head Over To The Testnet Website Homepage

The first thing you need to do is simply head over the Lybra V2 Testnet website homepage at:

https://v2-test.lybra.finance/

Step 2: Launch The App

In the top right-hand corner of the page, you’ll see an icon that says “Launch App”. Click on this to be directed to the Testnet app itself.

Step 3: Connect Your Wallet & Switch To Arbitrum

In the top-right hand corner of the app dashboard you’ll see an icon that says “Connect Wallet”. Click on this and select the relevant option from the menu that appears to connect your wallet.

Once your wallet is connected, switch it to the Arbitrum network. For the purposes of the Lybra V2 Testnet, Arbitrum Goerli will act as the Ethereum Mainnet and Ethereum Goerli will act as Arbitrum.

Step 3: Claim ETH To Cover Gas Costs

Under the Deposit ETH section (the top section on the main dashboard) you will see an icon saying “Faucet”. Click on the Faucet icon to claim the free amount of ETH required to cover your gas costs. You should receive a message in your wallet saying “I’m claiming ETH for Lybra Protocol testing”, which you can approve.

Step 4: Select stETH As Your Collateral Option

When you launch the app, the first page you arrive on will be the Deposit & Mint page. If you have already navigated away to a different section, then come back to the Deposit & Mint page by clicking the “Deposit Mint” option in the left-hand-side menu, beneath the word “DASHBOARD”.

Once on this page, ensure that “stETH” is selected in the “Deposit as” dropdown menu (this should already be selected as default if you haven’t changed it).

Step 5: Claim Your stETH Test Token

Claim your stETH Test Token by clicking the “Claim Test Token” button, circled in the above graphic.

Step 5: Deposit Your stETH & Mint eUSD

Then simply input the amount of stETH you wish to deposit.

Once you have deposited your stETH you can then go to the Mint dashboard directly beneath the Deposit dashboard and choose the amount you wish to mint. Alternatively you can select the deposit and mint amount simultaneously by clicking “Deposit & Mint.”

In either case, be sure to check your Collateral Ratio (keeping in mind that the minimum Collateral Ratio to avoid liquidation is 150%). You can also view the route that your stETH will be going to be converted into eUSD.

Step 6: Convert Your eUSD To peUSD-Arb

Now, this is the point where you can try out converting eUSD to peUSD, which is the new omnichain version of eUSD being introduced in Lybra V2. Simply click the “OMNICHAIN” option in the menu on the left-hand side of the app underneath the word “DASHBOARD”. You’ll then be taken to the following screen:

To convert eUSD to peUSD-Arb (the version that can be used on Arbitrum) follow a 2-step process:

a) Convert eUSD to peUSD-mainnet

Select “eUSD” in the “From” section and select “ETH” as the “From” network. Likewise, select “peUSD” in the “To” section and select “ETH” in the “To” network. Then, simply select the amount of eUSD that you wish to convert to peUSD, and press “Convert”. At this stage you will receive peUSD-mainnet. To bridge to other networks, you then need to convert your peUSD-mainnet into the relevant version of peUSD for that chain. In the testnet, the available demonstration chain is Arbitrum. So, you can try converting your peUSD-mainnet to peUSD-Arb, which is the form of peUSD that can be used on Arbitrum. You do this as follows:

b) Convert peUSD-mainnet to peUSD-Arb

Using the same dashboard, select “peUSD” in the “From” section and select “ETH” as the “From” network. Likewise, select “peUSD” in the “To” section and select “ARB” as the “To” network. Then, simply select the amount of peUSD that you wish to convert to peUSD, and press “Convert”. You will receive an amount of peUSD-Arb at a 1:1 ratio, which is the form of peUSD that can be used on Arbitrum. For the purposes of the Testnet, this is just a demonstration and you will not be able to spend the peUSD elsewhere just yet. An exciting feature is that when peUSD is minted using the journey described here (i.e. via first minting eUSD through a Rebase LSTs such as stETH and then converting to peUSD), you will continue to earn interest on the underlying eUSD, even once you spend your peUSD.

Step 7: Convert peUSD Back To eUSD

Finally, you can have a go at converting peUSD back to eUSD. As mentioned above, once the mainnet is live, interest on the eUSD being used as collateral for your peUSD will continue to accumulate, and will be realized when you convert it back to eUSD.

You can convert peUSD back to eUSD using the following steps.

a) Convert peUSD-Arb back to peUSD-mainnet

To do this, use the same dashboard as in Step 5 but change the “From” selection to “peUSD” and select “ARB” as the “From” network. Then change the “To” selection to “peUSD” and select “ETH” as the “To” network. Then select the amount and press “Approve”.

b) Then convert peUSD-mainnet to eUSD-mainnet

Once you have converted peUSD-Arb back to the mainnet version of peUSD, you then need to convert peUSD-mainnet back to eUSD. To do this, use the same dashboard again but select “peUSD” in the “From” section with “ETH” as the “From” network. Then select “eUSD” in the “To” section, with “ETH” selected as the “To” network. Select the amount you wish to convert, then press “Approve”. Remember, eUSD yields continue to accrue even whilst you are holding or spending peUSD. So, when you convert peUSD-mainnet back to eUSD, you will realize any accrued eUSD yield.

JOURNEY 2: Mint peUSD Using A Non-Rebase LST & Your peUSD For LSTs

NOTE: To claim Rewards for completing this journey, visit: https://zealy.io/c/lybrafinance/questboard/d04a7633-d0d9-4c9f-b5ef-f7a73823cb18

So, Journey 1 showed you how to get to grips with minting eUSD using Rebase LSTs and converting that eUSD to peUSD to unlock omnichain functionality. Now, let’s show you how you can test out minting peUSD directly using a Non-Rebase LST as collateral, repay a peUSD loan, and / or redeem your peUSD for LSTs.

To do this, you simply need to claim your WBETH test token on the Testnet, mint peUSD using the test token as collateral and convert to peUSD-Arb. You can then convert back to peUSD-mainnet to try out paying back part of the peUSD debt to increase your Collateral Ratio or redeem your peUSD for LSTs. Here is a step-by-step guide with screenshots, explaining how to do this:

Step 1: Ensure Wallet Is Connected

If your wallet is not already connected to the Lybra V2 Testnet, then connect by following Steps 1, 2 and 3 outlined in Journey 1 above.

Step 2: Claim WBETH Test Token

If you are not already on the Deposit/Mint section of the app, then select the “Deposit / Mint” option beneath the word “DASHBOARD” on the menu on the left-hand side of the page.

Once you are here, select “WBETH” from the “Deposit as” dropdown or click “WBETH” as the option on the horizontal menu above the Deposit dashboard. Then claim your free WBETH test token by clicking the “Claim Test Token” button highlighted in blue. WBETH is an example of a Non-Rebase LST.

Step 3: Deposit WBETH and mint peUSD-Mainnet

Then simply input the amount of WBETH you wish to deposit. Once you have deposited your WBETH you can then go to the Mint section directly beneath the Deposit section on the Mint & Deposit dashboard and choose the amount of peUSD you wish to mint. Alternatively you can select the deposit and mint amount simultaneously and simply click “Deposit & Mint.”

In either case, be sure to check your Collateral Ratio (keeping in mind that the minimum Collateral Ratio to avoid liquidation is 150%). You can also view the route that your WBETH will be going to be converted into peUSD. The peUSD you receive will be the mainnet version initially.

Step 4: Convert peUSD-mainnet To Another Chain

To use your peUSD on other networks and unlock omnichain functionality, you will need to convert your peUSD-mainnet to another chain (the available option in the Testnet is peUSD-Arb). To do this, click the “OMNICHAIN” option in the menu on the left-hand side of the App underneath the word “DASHBOARD”. You’ll then be taken to the following screen:

Select “peUSD” in the “From” section and select “ETH” as the “From” network. Likewise, select “peUSD” in the “To” section and select “ARB” as the “To” network. Then, simply choose the amount of peUSD-mainnet that you wish to convert to peUSD-Arb, and press “Convert”. You will receive an amount of peUSD-Arb at a 1:1 ratio, which is the form of peUSD that can be used on Arbitrum. For the purposes of the Testnet, this is just a demonstration and you will not be able to spend the peUSD elsewhere just yet. But when the mainnet is live, you will be able to spend the peUSD on any DeFi applications on the Arbitrum network (with more networks to be rolled-out shortly after launch to achieve full omnichain functionality). When peUSD is minted using the journey described here (i.e. minting peUSD directly via Non-Rebase LSTs such as WBETH), you will not receive your yield in the form of eUSD or peUSD. Instead, you will automatically accrue yield via the underlying LST being used as collateral, which will continue to increase in value even as you spend your peUSD.

Step 5: Bridge peUSD-Arb Back To peUSD-mainnet

Then, you can have a go at bridging your peUSD-Arb back into peUSD-mainnet, which is the form you’d need to have it in to redeem your peUSD for LSTs or pay back part of your debt.

To do this, stay on the same Omnichain dashboard being used in Step 4. Select “peUSD” in the “From” section and select “ARB” as the “From” network. Likewise, select “peUSD” in the “To” section and select “ETH” as the “To” network. Then, select the amount you wish to convert and press “Convert”. You will now have the equivalent amount in peUSD ready to repay your debt or redeem your peUSD for LSTs.

Step 6: Try Repaying Your peUSD To Increase Your Collateral Ratio Or Try Redeeming Your peUSD For Other Users’ LSTs

Once your peUSD has been converted into the mainnet version, you then have a couple of functionality options to try out. You can either try paying back some of your peUSD debt to increase your collateral ratio, or redeem your peUSD for other users’ LSTs (assuming there are other users signed up as redemption providers). Let’s look at each of these options in turn:

a) Paying Back A Portion Of Your peUSD Debt

To avoid liquidation, you need to maintain a Collateral Ratio of a minimum of 150%. So, if your Collateral Ratio has dropped close to that figure, you may want to pay back some of the loan to increase your collateral ratio. To do this, click on the “Repay” section of the left-hand menu on the app under the word “DASHBOARD”. Once you are there, select “WBETH” from the horizontal menu at the top of the Repay dashboard. Select the amount you wish to repay and you will then be able to see below what impact this will have on your Collateral Ratio. Then simply click “Repay” to complete the repayment.

b) Redeem peUSD For Non-Rebase LSTs

Another piece of functionality you can try out once your peUSD-Arb has been converted back to peUSD-mainnet is redeeming your peUSD for other users’ LSTs (assuming there are other users signed up as redemption providers).

To do this, click on the “Redeem” section of the left-hand menu on the app under the word “DASHBOARD”. Once you are there, select “WBETH” from the horizontal menu at the top of the Redeem dashboard. Select the amount you wish to Redeem and then simply click “Redeem” to receive your WBETH.

Conclusion

So, the above journeys give some examples of the V2 functionality that you can currently test out on the V2 testnet. As more functionality goes live, we’ll introduce similar guides for them. But for now, have a play-around and tell us what you think. Meanwhile, make sure you stay in touch with us for all the latest updates on:

Twitter: https://twitter.com/LybraFinanceLSD

Discord: https://discord.gg/mgyq3PhdJg

Website: https://lybra.finance/

Docs: https://docs.lybra.finance/lybra-finance-docs-v2-beta/