Hyperdrive Testnet

Hyperdrive Testnet Proposal: https://forum.element.fi/discussion/16635-egp29-hyperdrive-public-testnet-implementation-for-element-dao

Hyperdrive Testnet UI: https://testnet.hyperdrive.trade/

The Element DAO's Hyperdrive Public Testnet is users’ first chance to experience Hyperdrive firsthand, contribute to its research and development, and provide valuable feedback – all without putting real assets on the line. This testnet deployment aims for the Element DAO to experiment with Hyperdrive as an additional tool with which to create new DeFi products.

The following specification and step-by-step process will be deployed to the Ethereum Sepolia testnet.

1. DELV deploys an ERC20ForwarderFactory.

2. DELV deploys a HyperdriveFactory with the following parameters, below. DELV will configure the parameters as a default but Element DAO can/may want to update them over the course of the Testnet for their learnings and experience.

   1. governance = <PROVIDED_GOVERNANCE_ADDRESS>

      1. This is the governance address that updates the factory’s configuration.

   2. hyperdriveGovernance = <PROVIDED_GOVERNANCE_ADDRESS>

      1. This is the governance address used when new instances are deployed. This address controls the ability to change fee collector, sweep collector, pause hyperdrive contracts, etc.

   3. defaultPausers = <PROVIDED_DEFAULT_PAUSERS>

   4. feeCollector = <PROVIDED_FEE_COLLECTOR>

   5. sweepCollector = <PROVIDED_SWEEP_COLLECTOR>

   6. checkpointDurationResolution = 1 hour

   7. minCheckpointDuration = 8 hours

   8. maxCheckpointDuration = 1 day

   9. minPositionDuration = 1 week

   10. maxPositionDuration = 10 year

   11. minFixedAPR = 0.5%

   12. maxFixedAPR = 30%

   13. minTimeStretchAPR = 0.5%

   14. maxTimeStretchAPR = 30%

   15. minFees.curve = 0.0005e18

   16. minFees.flat = 0.0001e18

   17. minFees.governanceLP = 0.15e18

   18. minFees.governanceZombie = 0.03e18

   19. maxFees.curve = 0.005e18

   20. maxFees.flat = 0.001e18

   21. maxFees.governanceLP = 0.15e18

   22. maxFees.governanceZombie = 0.03e18

   23. linkerFactory = <DEPLOYED_LINKER_FACTORY>

   24. linkerCodeHash = <DEPLOYED_LINKER_CODE_HASH>

3. DELV deploys ERC4626 and Lido Hyperdrive deployer coordinators and deployers.

4. DELV transfers ownership of this deployed factory contract to a governance address chosen by the Element DAO. This happens immediately after deployment.

5. Element DAO should modify any factory parameters that need to be tweaked.

6. Element DAO adds the relevant deployer coordinators to the factory so that Hyperdrive pools can be deployed.

7. DELV will deploy the initial pools for testnet implementations for practicality; however, DELV may not do this for any Hyperdive mainnet deployments, as that will be the responsibility of the DAO(s) and/or their authorized deployers.

8. DELV will host a Hyperdrive UI for users to access the Hyperdrive testnet. This UI will go live when the testnet implementation of Hyperdrive is officially voted in and deployed on Sepolia.