The Alto Protocol Public Testnet Is Now Live

Alto's public testnet is now open on Ethereum Sepolia. This is the first opportunity for the public to interact with Alto's core features, including borrowing, leverage, staking, and rewards.

Access the testnet: testnet.alto.money

Note: All assets, prices, and rewards on the testnet are for testing purposes only and have no monetary value.

What is Alto? A Brief Overview

Alto is a credit and incentives protocol designed for clarity, security, and capital efficiency. The architecture is built on three key pillars:

Isolated Markets

The protocol is organized into independent markets, each with its own collateral, parameters, and risk profile. This design contains risk and prevents issues from spreading across the system.

A Decentralized Stablecoin Ecosystem

At the center of Alto is DUSD, a fully on-chain stablecoin used across all markets. By building every lending and incentive mechanism around a single native asset, Alto creates a cohesive and self-sustaining credit environment rather than a collection of disconnected pools.

Activity-Driven Ownership and Protocol-Owned Liquidity (POL)

Every action that generates activity (borrowing, lending, or minting) earns Alto Reward Options (ARO). These options grant the right to purchase ALTO at a discount, converting protocol usage into ownership. When exercised, ARO payments flow back into Protocol-Owned Liquidity (POL), reinforcing Alto’s balance sheet and aligning long-term participants with the protocol’s growth.

Learn more on: docs.alto.money

A Guide to Testing Alto

Getting started is a straightforward process designed to let you explore the protocol's features quickly.

Step 1: Get Set Up

Connect a wallet and switch to the Ethereum Sepolia network.
Open the “Testnet” tab. A single transaction there will mint all the necessary test tokens, including collateral assets and DUSD.

Step 2: Explore the Lending Protocol

Go to the “Borrow” tab to interact with Alto's primary functions. Here, you can:

Add Collateral & Borrow DUSD: Deposit supported testnet assets to open a loan. Adjust the Loan-to-Value (LTV) slider to see its effect on position health.
Leverage a Position: Use Flash Leverage to open a position at a target LTV in one click—no manual loops.
Repay & Withdraw: Manage positions by repaying DUSD debt and withdrawing collateral.
Deleverage: Unwind a leveraged position in a single transaction.

Borrow vs. Mint Markets: While the action takes place in the “Borrow” tab, the UI clearly indicates whether a selected market facilitates a borrow (drawing from a lender pool) or a mint (creating new DUSD against collateral).

Step 3: Staking and Rewards

With testnet ALTO, you can explore staking and rewards:

Stake ALTO: In “Stake ALTO”, lock ALTO into a container. Staking provides eligibility for a share of protocol revenues (simulated on testnet).
Exercise Protocol Rewards (ARO): Active positions earn AROs. Exercise them in “Rewards” to acquire ALTO at a discount.
Claim Staking Rewards: Claim accrued DUSD rewards from the “Portfolio” page.

Testnet Parameters

Protocol Rewards: The system distributes a random 2–5 ALTO every hour. Eligibility requires having borrowed, minted, or lent at any point (no active position required).
Staking Rewards: Stakers receive a random 2–5 DUSD every hour. Eligibility requires an active staking position at the time of distribution.
Simulated APYs: Displayed APYs are hardcoded for demonstration. Protocol rewards APY is modeled as if at the start of the emissions schedule, with a planned 0.88% exponential decay.
ALTO Price: In the UI, ALTO is currently pegged to the price of ZRO on Arbitrum for testing.
Staking Lock Duration: Base lock duration on testnet is 3 days (planned 1 week on mainnet).

Reporting Issues

Your feedback is essential. Use the “Report an issue” button in the app to submit:

A description of the actions taken
Screenshots or a screen recording
(Optional) A Discord or Twitter handle for follow-up

This deployment is a crucial step toward a secure and intuitive mainnet launch. Thanks for helping us test!