This step-by-step walkthrough is a beginner’s guide for inexperienced DeFi wonderers who want to try the Overlay testnet. A guide for mainnet will be shared here in the upcoming weeks.

You’re going to learn to get some OVL, make some trades and unwind your positions, respectively.First of all, click the official link to access the Overlay testnet UI. (You can find this link and all necessary information, links and contracts on the testnet-faq channel on the Overlay discord)

Before starting, make sure you’re on the correct network, Kovan testnet, by simply clicking the Ethereum Mainnet on your Metamask and finding the “Kovan Test Network”. If it’s not showing, just click ‘Show/hide test networks’ and change the settings.

https://lh6.googleusercontent.com/ac0BwE7m-68EZg2zlVs0_dWT5Eghl93-WdVi1TFKz0QL_r7wk3wb_QPvs7ESySuqtxyh6gzWcwFxp8nQ6s9AeeoU8ytQgQv9t4Ky9W6Gkb3_tbC3oiXM1FHlfnyZTbPy7zVm8hw9BobHq6Xky4AsbecbWt7cje3h6wDXUiTjBWAIfbqMhQipiCbuBg

Now we’re good to go connecting our wallet, by clicking “Connect Wallet” on the top right corner.

We’re connected right now, ready to make some trades, aren’t we? We definitely aren’t, we need some OVL to make some trades, and of course some ETH to execute them because the gas is paid in ETH as you know.So let’s jump right into the Paradigm’s latest faucet to get some test ETH.

https://lh4.googleusercontent.com/dq3_2lPkisD7g-phVhdBojVLfvlY96MkIag8IuI6db8n1JsgBKVukY-mPXXrUoDNZlLekzgICOCgCzqAEC0c5HUumSav2nd4WzwDPuyQATkL9Q23dj7jmJLcDzIztWDFbwVATz3hJ-0XrUwjSVSbqAFbgAyhm7t0tzA9dfvs0KSyPjUmhxNtgQZ5gw

What you need to do is simply connect your twitter, paste your ETH address, and click ‘Claim’.

CONGRATTSSSS! You have some test ETH to buy some OVL right now. Let’s jump to the Uniswap now…

What you need to do is to click ‘Select a token’, and then paste the OVL contract address(0x04020e4fF78b629D79CcBd163fc6044af73588DC), and add it.

https://lh4.googleusercontent.com/Ez4iy72JCvM1j2I0XwETI_AztzXwIMtpJ1Twx1nfMzS4QGlGr4QGgz4YqLW7cKJF10i7KVJGHwZ0w2J4L0UVao6v5dQbYSz7iU55FnPFocOJAD1ZKZkRXMqSEz5XUNFWhRUtI-oEb0S9oBGP_ykrVq42L6FD8ym6M9VSxQCb3gNg31rr7YJ0kzIngw

Now, you’re ready to buy some OVL by simply clicking Swap, and confirm the swap on your Metamask.

https://lh5.googleusercontent.com/PgorPZxlD-8omkL9xfsXYjSW1e0A4vS06n97ogpaz0UPsB9LLAR8kVFlqpTr74fjN0MVDZ7dyGi4GQ1_Vt50t7kgIYMAiBscOHDKHg5iFx5dIPrSHs2IZ-efVnYt5pOzXm5_Q6h6n3xKcpmFd6O3JzZVi0JHkze7qdsVJrhgXO2FHAcnN9EZeCJyaw

Yeeeeey!!!! You now have some test OVL too! Let’s get back to the testnet website and make some test trades.

https://lh4.googleusercontent.com/BCiX5Yg0Uwt73Xsot9GKumOio5Xhx3XDQWJ5t7iGaZ35JKaE48mtcIsYpu8DaH-PnXtjqOZiXZcegR3mUVX69AHJ3EKCGBycZ7c8_gcQ95nwK3zSLxkNehHaK6EmtQi3Jvi0YLyCx1YUQ6pHEj0H_cLFqBipBWnVJmmLaEMcaU7eNEdBnQkCuUoXOA

Here, you can see there are three different markets you can open some long/short positions. All the necessary information like Price, OI (Open Interest), and Funding Rates can be seen here.

The thing about OI is that it has a cap, and once its cap reached, you cannot open a new position unless somebody unwind their positions.