Y2K Finance Testnet - Step by step instructions for participation.

What is Y2K Finance "EARTHQUAKE"?

Earthquake is our flagship structured product that allows users to hedge, speculate and underwrite the volatility risk associated with various pegged assets. Users can take on these positions by depositing $ETH in fully collateralized insurance vaults that leverage a variant of the ERC 4626 token standard. In order to “buy” insurance and therefore receive a payout in the event that the underlying asset depegs users deposit ETH into the “Premium vault”. Conversely in order to “sell” insurance users deposit ETH into the “Collateral vault” earning yield and collect the premium from users that seek coverage.

Market participants can deposit into Y2K vaults at any time before the epoch start date, after which funds are locked for the duration of the epoch. During the Epoch the underlying pegged assets are monitored by Chainlink oracles, and in the event where an asset de-pegs to a degree larger than the strike of a vault pair, the contents of the collateral vault are liquidated and awarded to the premium vault depositors. In the event of no de-pegging over the course of an asset’s insurance epoch, both premia and collateral payments are delivered to the insurance sellers.
For example: If the epoch starts with 1 user depositing 1 eth in the premium vault while there’s 5 eth in the collateral vault if a depeg event were to happen the user in the premium vault would receive all 5 eth as a payout. Conversely if the epoch ends without a depeg event the users who deposited in the collateral vault would receive a portion of the eth deposited in the premium vault proportional to the amount of collateral they deposited. It’s important to note that collateral depositors receive premiums regardless of whether there was a liquidation event, and all cash-flows occur at the end of the epoch. This diagram below illustrates the cash flows of earthquake vaults.

Add Arbitrum testnet - https://chainlist.org/chain/421611
Getting test tokens - https://rinkebyfaucet.com/
We transfer Ethereum to the Arbitrum network via the bridge - https://bridge.arbitrum.io/

Go to testnet site https://y2k-frontend.vercel.app/ and connect the wallet

Then we do all of the following:

Go on the Mint tab
Select your position “Risk” or “Hedge”
Select your asset
Select your strike price
Select which Epoch (finish month)
Choose your deposit Token (ETH or WETH) and Deposit your amount
Approve Wrapped Ethereum
Click “Mint
Check your Tokens on “Claim”
When the Epoch is over or a Depeg event is triggered you will be able to Claim the Rewards for that token

Provide us feedback in the #feedback channel of the discord to participate in our Early Adopter Program