What is Zephyr Protocol?

Zephyr Protocol is an over-collateralized private stablecoin protocol launched on May 29, 2023, and is built on a native Monero-based chain, utilizing its privacy features for asset transactions. It employs a three-asset model consisting of ZEPH, ZephUSD, and ZephRSV, where ZEPH serves as the base coin for collateralization, and ZephUSD is a private stablecoin requiring at least 400% collateral in ZEPH for minting. ZephRSV acts as a reserve coin linked to the reserve ratio, which influences its value.

The protocol's governance model is community-driven, with no external venture capital funding. Future developments include a public testnet for its Djed implementation and a maintenance hard fork scheduled for Q4 2023. The protocol incentivizes reserve providers through mechanisms such as leveraged positions based on ZEPH's value, fees from minting or redeeming actions added to the reserve, and contributions from block rewards.