diff --git a/.example.env b/.example.env
new file mode 100644
index 0000000..b0d3c19
--- /dev/null
+++ b/.example.env
@@ -0,0 +1 @@
+MAINNET_RPC_URL=https://eth-mainnet.g.alchemy.com/v2/demo
\ No newline at end of file
diff --git a/.github/workflows/test.yml b/.github/workflows/test.yml
index 762a296..1074b5f 100644
--- a/.github/workflows/test.yml
+++ b/.github/workflows/test.yml
@@ -1,45 +1,45 @@
-name: CI
-
-on:
-  push:
-  pull_request:
-  workflow_dispatch:
-
-env:
-  FOUNDRY_PROFILE: ci
-
-jobs:
-  check:
-    strategy:
-      fail-fast: true
-
-    name: Foundry project
-    runs-on: ubuntu-latest
-    steps:
-      - uses: actions/checkout@v4
-        with:
-          submodules: recursive
-
-      - name: Install Foundry
-        uses: foundry-rs/foundry-toolchain@v1
-        with:
-          version: nightly
-
-      - name: Show Forge version
-        run: |
-          forge --version
-
-      - name: Run Forge fmt
-        run: |
-          forge fmt --check
-        id: fmt
-
-      - name: Run Forge build
-        run: |
-          forge build --sizes
-        id: build
-
-      - name: Run Forge tests
-        run: |
-          forge test -vvv
-        id: test
+name: CI
+
+on:
+  push:
+  pull_request:
+  workflow_dispatch:
+
+env:
+  FOUNDRY_PROFILE: ci
+
+jobs:
+  check:
+    strategy:
+      fail-fast: true
+
+    name: Foundry project
+    runs-on: ubuntu-latest
+    steps:
+      - uses: actions/checkout@v4
+        with:
+          submodules: recursive
+
+      - name: Install Foundry
+        uses: foundry-rs/foundry-toolchain@v1
+        with:
+          version: nightly
+
+      - name: Show Forge version
+        run: |
+          forge --version
+
+      - name: Run Forge fmt
+        run: |
+          forge fmt --check
+        id: fmt
+
+      - name: Run Forge build
+        run: |
+          forge build --sizes
+        id: build
+
+      - name: Run Forge tests
+        run: |
+          forge test -vvv
+        id: test
diff --git a/.gitignore b/.gitignore
index 85198aa..046df68 100644
--- a/.gitignore
+++ b/.gitignore
@@ -1,14 +1,14 @@
-# Compiler files
-cache/
-out/
-
-# Ignores development broadcast logs
-!/broadcast
-/broadcast/*/31337/
-/broadcast/**/dry-run/
-
-# Docs
-docs/
-
-# Dotenv file
-.env
+# Compiler files
+cache/
+out/
+
+# Ignores development broadcast logs
+!/broadcast
+/broadcast/*/31337/
+/broadcast/**/dry-run/
+
+# Docs
+docs/
+
+# Dotenv file
+.env
diff --git a/.gitmodules b/.gitmodules
index c59f396..7244277 100644
--- a/.gitmodules
+++ b/.gitmodules
@@ -1,6 +1,6 @@
-[submodule "lib/forge-std"]
-	path = lib/forge-std
-	url = https://github.com/foundry-rs/forge-std
-[submodule "lib/solmate"]
-	path = lib/solmate
-	url = https://github.com/transmissions11/solmate
+[submodule "lib/forge-std"]
+	path = lib/forge-std
+	url = https://github.com/foundry-rs/forge-std
+[submodule "lib/solmate"]
+	path = lib/solmate
+	url = https://github.com/transmissions11/solmate
diff --git a/.prettierignore b/.prettierignore
new file mode 100644
index 0000000..fa29cdf
--- /dev/null
+++ b/.prettierignore
@@ -0,0 +1 @@
+**
\ No newline at end of file
diff --git a/README.md b/README.md
index 244c5dd..68324e3 100644
--- a/README.md
+++ b/README.md
@@ -1,3 +1,3 @@
-### MicroStable
-
-Most simple design of a stablecoin.
+### MicroStable
+
+Most simple design of a stablecoin.
diff --git a/foundry.toml b/foundry.toml
index 25b918f..786301d 100644
--- a/foundry.toml
+++ b/foundry.toml
@@ -1,6 +1,6 @@
-[profile.default]
-src = "src"
-out = "out"
-libs = ["lib"]
-
-# See more config options https://github.com/foundry-rs/foundry/blob/master/crates/config/README.md#all-options
+[profile.default]
+src = "src"
+out = "out"
+libs = ["lib"]
+
+# See more config options https://github.com/foundry-rs/foundry/blob/master/crates/config/README.md#all-options
diff --git a/src/MicroStable.sol b/src/MicroStable.sol
index bda5a2a..d5a13fe 100644
--- a/src/MicroStable.sol
+++ b/src/MicroStable.sol
@@ -1,75 +1,84 @@
-// SPDX-License-Identifier: MIT
-pragma solidity ^0.8.13;
-
-import {ERC20} from "lib/solmate/src/tokens/ERC20.sol";
-
-interface Oracle { function latestAnswer() external view returns (uint); }
-
-contract ShUSD is ERC20("Shafu USD", "shUSD", 18) {
-  address public manager;
-
-  constructor(address _manager) { manager = _manager; }
-
-  modifier onlyManager() {
-    require(manager == msg.sender);
-    _;
-  }
-
-  function mint(address to,   uint amount) public onlyManager { _mint(to,   amount); }
-  function burn(address from, uint amount) public onlyManager { _burn(from, amount); }
-}
-
-contract Manager {
-  uint public constant MIN_COLLAT_RATIO = 1.5e18;
-
-  ERC20 public weth;
-  ShUSD public shUSD;
-
-  Oracle public oracle;
-
-  mapping(address => uint) public address2deposit;
-  mapping(address => uint) public address2minted;
-
-  constructor(address _weth, address _shUSD, address _oracle) {
-    weth   = ERC20(_weth);
-    shUSD  = ShUSD(_shUSD);
-    oracle = Oracle(_oracle);
-  }
-
-  function deposit(uint amount) public {
-    weth.transferFrom(msg.sender, address(this), amount);
-    address2deposit[msg.sender] += amount;
-  }
-
-  function burn(uint amount) public {
-    address2minted[msg.sender] -= amount;
-    shUSD.burn(msg.sender, amount);
-  }
-
-  function mint(uint amount) public {
-    address2minted[msg.sender] += amount;
-    require(collatRatio(msg.sender) >= MIN_COLLAT_RATIO);
-    shUSD.mint(msg.sender, amount);
-  }
-
-  function withdraw(uint amount) public {
-    address2deposit[msg.sender] -= amount;
-    require(collatRatio(msg.sender) >= MIN_COLLAT_RATIO);
-    weth.transfer(msg.sender, amount);
-  }
-
-  function liquidate(address user) public {
-    require(collatRatio(user) < MIN_COLLAT_RATIO);
-    shUSD.burn(msg.sender, address2minted[user]);
-    weth.transfer(msg.sender, address2deposit[user]);
-    address2deposit[user] = 0;
-    address2minted[user] = 0;
-  }
-
-  function collatRatio(address user) public view returns (uint) {
-    uint minted = address2minted[user];
-    if (minted == 0) return type(uint256).max;
-    uint totalValue = address2deposit[user] * oracle.latestAnswer() / 1e18;
-    return totalValue / minted;
-  }
-}
+// SPDX-License-Identifier: MIT
+pragma solidity ^0.8.13;
+
+import {ERC20} from "lib/solmate/src/tokens/ERC20.sol";
+
+interface Oracle {
+    function latestAnswer() external view returns (uint256);
+}
+
+contract ShUSD is ERC20("Shafu USD", "shUSD", 18) {
+    address public manager;
+
+    constructor(address _manager) {
+        manager = _manager;
+    }
+
+    modifier onlyManager() {
+        require(manager == msg.sender);
+        _;
+    }
+
+    function mint(address to, uint256 amount) public onlyManager {
+        _mint(to, amount);
+    }
+
+    function burn(address from, uint256 amount) public onlyManager {
+        _burn(from, amount);
+    }
+}
+
+contract Manager {
+    uint256 public constant MIN_COLLAT_RATIO = 1.5e18;
+
+    ERC20 public weth;
+    ShUSD public shUSD;
+
+    Oracle public oracle;
+
+    mapping(address => uint256) public address2deposit;
+    mapping(address => uint256) public address2minted;
+
+    constructor(address _weth, address _shUSD, address _oracle) {
+        weth = ERC20(_weth);
+        shUSD = ShUSD(_shUSD);
+        oracle = Oracle(_oracle);
+    }
+
+    function deposit(uint256 amount) public {
+        weth.transferFrom(msg.sender, address(this), amount);
+        address2deposit[msg.sender] += amount;
+    }
+
+    function burn(uint256 amount) public {
+        address2minted[msg.sender] -= amount;
+        shUSD.burn(msg.sender, amount);
+    }
+
+    function mint(uint256 amount) public {
+        require(collatRatio(msg.sender) >= MIN_COLLAT_RATIO);
+        address2minted[msg.sender] += amount;
+        shUSD.mint(msg.sender, amount);
+    }
+
+    function withdraw(uint256 amount) public {
+        address2deposit[msg.sender] -= amount;
+        require(collatRatio(msg.sender) >= MIN_COLLAT_RATIO);
+        weth.transfer(msg.sender, amount);
+    }
+
+    function liquidate(address user) public {
+        require(collatRatio(user) < MIN_COLLAT_RATIO);
+        shUSD.burn(msg.sender, address2minted[user]);
+        weth.transfer(msg.sender, address2deposit[user]);
+        address2deposit[user] = 0;
+        address2minted[user] = 0;
+    }
+
+    function collatRatio(address user) public view returns (uint256) {
+        uint256 minted = address2minted[user];
+        if (minted == 0) return type(uint256).max;
+        uint256 totalValue = address2deposit[user] * (oracle.latestAnswer() * 1e10) / 1e18;
+        return totalValue / minted;
+    }
+}
diff --git a/test/MicroStable.t.sol b/test/MicroStable.t.sol
new file mode 100644
index 0000000..79fa051
--- /dev/null
+++ b/test/MicroStable.t.sol
@@ -0,0 +1,178 @@
+// SPDX-License-Identifier: MIT
+pragma solidity 0.8.20;
+
+import "forge-std/Test.sol";
+import {console2} from "forge-std/Test.sol";
+import {Manager, ShUSD} from "../src/MicroStable.sol";
+import {MockWETH} from "../test/mocks/MockWETH.sol";
+
+interface Oracle {
+    function latestAnswer() external view returns (uint256);
+}
+
+contract MicroStableTest is Test {
+    uint256 mainnetFork;
+    string MAINNET_RPC_URL = vm.envString("MAINNET_RPC_URL");
+
+    address bob = makeAddr("bob");
+    address alice = makeAddr("alice");
+
+    ShUSD public stablecoin;
+    Manager public manager;
+    MockWETH public weth;
+    Oracle public oracle = Oracle(0x5f4eC3Df9cbd43714FE2740f5E3616155c5b8419); // chainlink eth-usd price feed, eth mainnet
+
+    uint256 ONE_WETH = 1e18;
+    uint256 TWO_WETH = 2e18;
+
+    uint256 public constant MIN_COLLAT_RATIO = 1.5e18;
+
+    function setUp() external {
+        // fork mainnet for oracle access
+        mainnetFork = vm.createFork(MAINNET_RPC_URL);
+        vm.selectFork(mainnetFork);
+
+        // mint eth to bob & alice
+        vm.deal(bob, 1000e18);
+        vm.deal(alice, 1000e18);
+
+        // @todo: the following to be precomputed using vm.computeCreateAddress instead, but will work for now
+        address managerContractAddress = 0xF62849F9A0B5Bf2913b396098F7c7019b51A820a;
+
+        // instantiate contracts
+        stablecoin = new ShUSD(managerContractAddress);
+        weth = new MockWETH();
+        manager = new Manager(address(weth), address(stablecoin), address(oracle));
+        console2.log(address(manager));
+
+        // mint mock weth to bob & alice
+        weth.mint(bob, 1000e18);
+        weth.mint(alice, 1000e18);
+
+        // approve max to manager
+        vm.prank(bob);
+        weth.approve(address(manager), type(uint256).max);
+        vm.prank(alice);
+        weth.approve(address(manager), type(uint256).max);
+    }
+
+    function test_depositCollateral() public {
+        depositWeth(bob, ONE_WETH);
+
+        uint256 bobCollateral = manager.address2deposit(bob);
+        assertEq(bobCollateral, ONE_WETH);
+    }
+
+    function test_withdrawCollateral() public {
+        depositWeth(bob, TWO_WETH); // deposit 2 x WETH
+        uint256 bobCollateralBeforeWithdrawal = manager.address2deposit(bob);
+
+        withdrawWeth(bob, ONE_WETH); // withdraw 1 x WETH
+        uint256 bobCollateralAfterWithdrawal = manager.address2deposit(bob);
+
+        assertEq(bobCollateralBeforeWithdrawal, TWO_WETH);
+        assertEq(bobCollateralAfterWithdrawal, ONE_WETH);
+    }
+
+    function test_mintStablecoins(uint256 amount) public {
+        amount = bound(amount, 100, calculateMaxMintablePerEthDeposited());
+
+        depositWeth(bob, ONE_WETH);
+
+        mintStablecoins(bob, amount);
+
+        uint256 bobAmountMinted = stablecoin.balanceOf(bob);
+        assertEq(bobAmountMinted, amount);
+    }
+
+    function test_burnStablecoins(uint256 amount) public {
+        amount = bound(amount, 100, calculateMaxMintablePerEthDeposited());
+
+        depositWeth(bob, ONE_WETH);
+
+        mintStablecoins(bob, amount);
+
+        vm.startPrank(bob);
+        manager.burn(stablecoin.balanceOf(bob) - 100); // burn all but 100 of bob's tokens
+        vm.stopPrank();
+
+        uint256 bobAmountMinted = stablecoin.balanceOf(bob);
+
+        assertEq(bobAmountMinted, 100);
+    }
+
+    function test_liquidateUser(uint256 amount) public {
+        amount = bound(amount, 100e18, calculateMaxMintablePerEthDeposited());
+
+        // bob deposits + mints stables
+        depositWeth(bob, ONE_WETH);
+        mintStablecoins(bob, amount);
+
+        // alice is the liquidator, give her stables to pay off bob's debt
+        vm.prank(address(manager));
+        stablecoin.mint(alice, amount);
+
+        // change bob's address2minted balance, thus making him liquidatable
+        vm.mockCall(address(manager), abi.encodeWithSelector(manager.address2minted.selector, bob), abi.encode(amount));
+        assertEq(manager.address2minted(bob), amount);
+
+        // alice liquidates bob
+        vm.startPrank(alice);
+        manager.liquidate(bob);
+        vm.stopPrank();
+
+        // alice should have no stables left
+        uint256 aliceRemainingStables = 0;
+        assertEq(stablecoin.balanceOf(alice), aliceRemainingStables);
+
+        // bob should have no collateral remaining
+        assertEq(manager.address2deposit(bob), 0);
+
+        // alice should have an extera 1 x WETH on top of her starting balance (1000e18)
+        assertEq(weth.balanceOf(alice), 1001e18);
+    }
+
+    function test_cannotLiquidateWhenFullyCollateralised(uint256 amount) public {
+        amount = bound(amount, 100e18, calculateMaxMintablePerEthDeposited());
+
+        // bob deposits + mints stables
+        depositWeth(bob, ONE_WETH);
+        mintStablecoins(bob, amount);
+
+        // alice is the liquidator, give her stables to pay off bob's debt
+        vm.prank(address(manager));
+        stablecoin.mint(alice, amount);
+
+        // alice liquidates bob - @note: should revert
+        vm.startPrank(alice);
+        vm.expectRevert();
+        manager.liquidate(bob);
+        vm.stopPrank();
+    }
+
+    // === HELPER FUNCTIONS ===
+    function depositWeth(address depositer, uint256 depositAmount) public {
+        vm.startPrank(depositer);
+        manager.deposit(depositAmount);
+        vm.stopPrank();
+    }
+
+    function withdrawWeth(address withdrawer, uint256 withdrawalAmount) public {
+        vm.startPrank(withdrawer);
+        manager.withdraw(withdrawalAmount);
+        vm.stopPrank();
+    }
+
+    function mintStablecoins(address minter, uint256 mintAmount) public {
+        vm.startPrank(minter);
+        manager.mint(mintAmount);
+        vm.stopPrank();
+    }
+
+    function calculateMaxMintablePerEthDeposited() public view returns (uint256) {
+        uint256 ethPriceInUsd = oracle.latestAnswer();
+        uint256 maxMintPerEthDeposited = (ethPriceInUsd * 1e10) / MIN_COLLAT_RATIO;
+        uint256 maxMintPerEthWithPrecision = maxMintPerEthDeposited * 1e18;
+        return maxMintPerEthWithPrecision;
+    }
+}
diff --git a/test/mocks/MockWETH.sol b/test/mocks/MockWETH.sol
new file mode 100644
index 0000000..c6c0288
--- /dev/null
+++ b/test/mocks/MockWETH.sol
@@ -0,0 +1,12 @@
+// SPDX-License-Identifier: MIT
+pragma solidity ^0.8.13;
+
+import {ERC20} from "lib/solmate/src/tokens/ERC20.sol";
+
+contract MockWETH is ERC20("Mock WETH", "WETH", 18) {
+    constructor() {}
+
+    function mint(address to, uint256 amount) public {
+        _mint(to, amount);
+    }
+}