MYSO v2 Testnet Phase I — User Guide
A step-by-step guide for borrowing on MYSO v2 and unlocking the power of Zero-Liquidation Loans!
We are excited to announce that phase I of the MYSO v2 testnet is now live!
Access it here: testnet.myso.finance
Below, we’ve prepared a full step-by-step guide to get you guys acquainted with the borrowing side of the peer-to-peer (P2P) v2 markets!
To celebrate this pivotal step in our development, we’re also holding a giveaway for all eligible testnet users! Go through the guide below to find out how to participate to win some USDC!
Before diving into the testnet, let’s go over what innovations we’ve made for the v2:
MYSO v2 represents a mass overhaul of Zero-Liquidation Loans in terms of capital efficiency, scalability, ease-of-use, and flexibility. Each MYSO v2 vault allows for numerous concurrent loan offers to be sent out by a lender from a “unified” vault across assets, pairs, and quotes (tenors, fee structures, LTV et. al), allowing for maximum capital efficiency!
We envision individual lenders sending out tens, if not hundreds, of different loan quotes with individually-customized parameters so that borrowers will be able to be matched with any loan configuration of their liking!
MYSO v2 is also able to handle rebasing collateral (i.e. aTokens), voting collateral (governance tokens), reward-bearing collateral denominated in other tokens (i.e. GLP, Curve LP tokens), and tokens with transfer fees (i.e. PAXG)!
For borrowers looking to lever up, we’re implementing 1-click looping into the platform — a built-in atomic single-transaction mechanism for looping/leveraging on any available token!
MYSO v2 is built with flexibility of term structure in mind — this means that fees can be paid upfront in the collateral token or can be remunerated in traditional APY interest payment from the loan token — or even a mix of the two!
All these points add up to a highly scalable, capital-efficient, and maximally flexible platform that allows for borrowers and lenders to access loans for both blue-chip and long-tail assets at any desired parameterization and fee structure!
Now, let’s dive into the testnet to learn how you can unlock a Million Yield-Structuring Opportunities with MYSO v2!
When first interacting with the dApp, you need to connect your wallet — currently, MYSO v2 supports MetaMask, Coinbase Wallet, and WalletConnect!
The MYSO v2 testnet is live on the Sepolia test network — to add ETH testnet network to your wallet, simply enter this RPC in your ‘Networks’ tab:
- Network Name — Sepolia Testnet
- New RPC URL — https://eth-sepolia.g.alchemy.com/v2/[YOUR-API-KEY]
- Chain ID — 11155111
- Currency Symbol — SepoliaETH
- Block explorer URL — https://sepolia.etherscan.io/
You’ll need some Sepolia ETH for gas to interact with MYSO, which you can get from a number of different faucets, including ones from Alchemy, Infura, and Quicknode.
We’d also like to share that MYSO v2 will be going live on the Mantle Network in conjunction with our launch on Ethereum mainnet, but before that, we’d love for you to test out the power of MYSO on the Mantle testnet!
To tap into the power of ZLLs on Mantle testnet, we first need to enter the RPC details in the ‘Networks’ tab of your wallet, similar to how we added the Sepolia test network:
- Network Name — Mantle Testnet
- New RPC URL — https://rpc.testnet.mantle.xyz
- Chain ID — 5001
- Currency Symbol — MNT
- Block explorer URL — https://explorer.testnet.mantle.xyz
Once this is added and you’ve switched to the Mantle testnet on the dApp, you’ll need some MNT for gas to interact with MYSO. We’ve added the MNT gas token to our in-house token faucet, which can be accessed here: https://testnet.myso.finance/faucet!
Clicking on the MNT token in the faucet section will send you to the official Mantle testnet bridge, which will allow you to bridge your Goerli testnet ETH to interact with dApps on the Mantle testnet. Next, head to the official Mantle testnet faucet to claim some testnet MNT tokens.
Once you’ve bridged and have Mantle testnet MNT tokens, you’re good to go!
Now, it’s time to take out a v2 Zero-Liquidation Loan!
First, connect your wallet using the button on the top right of the dApp.
To start viewing available quotes/borrow pairs and take out some ZLLs, click on the faucet icon in the top right section of the dApp. This will take you to https://testnet.myso.finance/faucet, where you’ll be able to claim any available testnet tokens to use as collateral or lending currency.
Make your way back to the main dApp page and view the process of taking out a fully-customizable Zero-Liquidation Loan from start to finish!
Step 1 — Select your borrow pair + preferred Tenor/LTV range
This first step allows your to select the token you want to put up as collateral for the loan. In the testnet, you can filter through a number of different collateral tokens, including dsETH, rETH, PAXG, etc. In addition, you can select a loan tenor range as well as your preferred LTV range.
There are many quotes available for a number of different pairs, but let’s take a look at one specific strategy — borrowing wETH against dsETH, an Index Coop ETH index token product!
dsETH represents a basket of some of the leading Ethereum liquid staking derivatives, including Rocket Pool’s rETH, Lido’s stETH, and Stakewise’s sETH2 — with each of the component tokens attributing a weighting to the index according to their ‘degree of decentralization’.
Step 2 — Select your pledge amount and if you want to lever up
The second step of the process asks you to enter the amount of dsETH you want to pledge as collateral, as well as if you want to maximally loop/fold. This setting allows users to lever up using a built-in atomic single-transaction mechanism! The amount of leverage you can take on depends on your preferred LTV range and available loan quotes, and we’ve written more about the architecture in a Medium piece here.
If you are looping/folding, remember to modify the leverage slippage tolerance in the settings found in step 4. In addition, when approving the spend and transaction when looping, make sure to click the ‘Use default’ for the spend limit, rather than the ‘Max’, which only accounts for you current holdings.
Step 3 — Select the loan you want to take out
Let’s say that we want to put up 1 dsETH as collateral and don’t have a preferred tenor/LTV range.
This portion of the dApp will show you the loans available based on your pledge amount and loan preferences. Here, we’re shown the tenor, the loan amount for your pledged collateral, the term rate/APR of the loan, an upfront fee, as well as the LTV and maximum loan amount available.
Select your preferred loan quote here before finalizing the process — I like a higher LTV loan where the upfront fee is lower, so this first loan meets my criteria perfectly!
Step 4 — Review your loan and confirm!
The final step for taking out your first Zero-Liquidation Loan is simply reviewing all of the loan details, approving the necessary tokens, and sending out the borrow transaction!
As you can tell, this loan will require me to pay the principal borrow amount plus a $7.00 dsETH fee before August 20, 2023 and allows me to reclaim ~.99637 dsETH for doing so. If I fail to repay the loan prior to expiry, the loan will default and my collateral will be claimed by the lender.
Once you’ve taken out your first loan, you will be automatically sent to the “Manage Loans” page of the dApp where you’ll be able to view all of your currently-open loans.
To repay before expiry, simply click on the “Repay” button for the appropriate loan and be sure to have the repayment amount in your wallet before finalizing the repayment!
You’ve now successfully taken out your first Zero-Liquidation Loan on MYSO v2!
For all eligible Phase I testnet users, we’ll be holding a giveaway!
To participate, simply utilize the MYSO v2 testnet and report any bugs you come across through the #testnet-bugs channel on our Discord. Afterwards, make sure to acquire the Wizard v2 role via Guild in our Discord #roles channel. Lastly, visit our Crew3/Zealy campaign and participate in the MYSO v2 Testnet Giveaway quest!
Once all of this is completed, you’ll be entered for a chance to win $100.00 (paid out in USDC after the giveaway has ended) — there will be 5 winners in total!
The giveaway will run until the end of June (06/30 @ 23:59 UTC), so good luck!
Outlook to Mainnet
As we gear up for the long-awaited mainnet launch, we can’t help but reflect on the tremendous effort invested in developing MYSO v2. Countless hours have been dedicated to refining and enhancing the platform to provide an exceptional user experience.
We eagerly anticipate receiving valuable feedback from the community on the current phase of the testnet, which will help shape an even more remarkable experience once v2 is live on mainnet!
With the mainnet launch just around the corner, we are brimming with excitement and anticipation. Stay tuned for further updates as we prepare to unveil MYSO’s full potential to the world of decentralized finance!
