diff --git a/v2_localnet.md b/v2_localnet.md
index c585d72e..9dbde69d 100644
--- a/v2_localnet.md
+++ b/v2_localnet.md
@@ -9,6 +9,7 @@ The new architecture aims to streamline the developer experience for building Un
 * `GatewayEVM`: Deployed on each connected chain to interact with ZetaChain.
 * `GatewayZEVM`: Deployed on ZetaChain to interact with connected chains.
 
+V2 contracts source code is currently located in [prototypes](/contracts/prototypes/)
 
 ## Contract Interfaces
 
@@ -92,4 +93,47 @@ Note: `--hide="NODE"` is used to prevent verbose logging
 ```
 yarn
 yarn localnet --hide="NODE"
+```
+
+The `localnet` command launches two processes:
+
+- A local Ethereum network (using Anvil) with the two gateway contracta deployed
+- A background worker that relay messages between the two gateway contracts. It simulates the cross-chain message relaying that would normally happen between live networks with the [observers/signers](https://www.zetachain.com/docs/developers/architecture/observers/). This allows to simulate a cross-chain environment on a single local chain.
+
+Running the command will deploy the two gateway contracts:
+
+```
+[WORKER] GatewayEVM: 0xe7f1725E7734CE288F8367e1Bb143E90bb3F0512
+[WORKER] GatewayZEVM: 0x0165878A594ca255338adfa4d48449f69242Eb8F
+```
+
+The developers can develop application using these addresses, the messages will automatically be relayed by the worker.
+
+The local environment uses Anvil. Therefore, the default Anvil accounts can be used to interact with the network.
+
+```
+Account #0: 0xf39Fd6e51aad88F6F4ce6aB8827279cffFb92266 (10000 ETH)
+Private Key: 0xac0974bec39a17e36ba4a6b4d238ff944bacb478cbed5efcae784d7bf4f2ff80
+
+Account #1: 0x70997970C51812dc3A010C7d01b50e0d17dc79C8 (10000 ETH)
+Private Key: 0x59c6995e998f97a5a0044966f0945389dc9e86dae88c7a8412f4603b6b78690d
+
+Account #2: 0x3C44CdDdB6a900fa2b585dd299e03d12FA4293BC (10000 ETH)
+Private Key: 0x5de4111afa1a4b94908f83103eb1f1706367c2e68ca870fc3fb9a804cdab365a
+```
+
+### Examples
+
+The example contracts demonstrate how the V2 interface can be leveraged to build Universal Apps.
+
+* [TestZContract](/contracts/prototypes/zevm/TestZContract.sol): ZetaChain contract (Universal App) that can be called from a connected chains
+* [SenderZEVM](/contracts/prototypes/zevm/SenderZEVM.sol): ZetaChain contract calling a smart contract on a connected chains
+* [ReceiverEVM](/contracts/prototypes/evm/ReceiverEVM.sol): contract on connected chain that can be called from ZetaChain
+
+The following commands can be used to test interactions between these contracts:
+```
+npx hardhat zevm-call --network localhost
+npx hardhat zevm-withdraw-and-call --network localhost
+npx hardhat evm-call --network localhost
+npx hardhat evm-deposit-and-call --network localhost
 ```
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