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Zephyr Protocol
The Untraceable Over-Collateralized Stablecoin Protocol
Zephyr is a revolutionary digital currency that combines the principles of privacy and stability. Grounded firmly on the proven Minimal Djed protocol, Zephyr embodies the first over-collateralized, private stablecoin, seamlessly incorporating the privacy features of Monero into a stablecoin system. The Djed protocol, which draws inspiration from AgeUSD, is a collaborative brainchild of Emurgo, IOHK, and the Ergo Foundation.
STABLECOIN MECHANISM
In simple terms, Zephyr Protocol works as follows. Users can mint or redeem stable (ZEPHUSD) and reserve (ZEPHRSV) coins in exchange for the base coin (ZEPH). The price for stable coins is determined by a pricing oracle, the price for reserve coins is determined using a formula based on the current reserve data.
When minting new stable/reserve coins the base coins that are exchanged (+ fee) get added to the Zephyr reserve. This reserve is the collateral backing for the stablecoin holders and is ensured to be above 400% collateral at all times. In the event that collateralization falls below 400% due to price decrease, new stable coins are unable to be minted, however the reserve coin price will drop giving incentive for users to buy reserve coins at a reduced rate.
Reserve coin holders are entitled to redeem their reserve coins for the amount of equity in the reserve based on their proportion of reserve coin holdings. This means that as stablecoins are minted and redeemed, the accumulated fees will build up in the reserve as profit for holders of the reserve coin. There is a maximum reserve ratio of 800% to prevent dilution for the reserve coin holders.
A more detailed explanation is present in the Zephyr whitepaper here: https://www.zephyrprotocol.com/s/Zephyr_Whitepaper_v1.pdf
The DJED whitepaper can be found here: https://eprint.iacr.org/2021/1069.pdf
TECHNICAL SPECIFICATIONS
Total Supply: 18.4 Million
Block Time: 120 seconds
Assets: ZEPH (Base Currency) | ZEPHUSD (USD Stablecoin) | ZEPHRSV (Reserve Currency)
Mining Algorithm: RandomX proof-of-work (PoW) optimized for general-purpose CPUs to promote decentralization and egalitarian mining.
Emission Curve: Zephyr has been designed with a slightly slower emission curve compared to Monero. This design choice is aimed at rewarding early adopters by reducing their dilution over time. By slowing the initial emission, the potential inflationary impact on the price of ZEPH is lessened, benefitting the stability of the algorithmic stablecoin system.
FEATURES
Minimal Djed-Based Stablecoin: Zephyr Protocol implements the Minimal Djed protocol, an innovative design that avoids the risk of liquidation typically found in CDP-based stablecoins. By ensuring the stablecoin supply is always substantially collateralized, Zephyr provides users with a reliable and stable asset.
Privacy: Inheriting from the Monero codebase (v18), Zephyr ensures untraceable, private transactions. By using advanced cryptographic techniques such as Ring Signatures, Stealth Addresses, and RingCT, Zephyr guarantees your transactions remain private and secure. Crucially, this privacy feature is present in the base, reserve and stablecoin currencies.
Decentralization: Zephyr remains true to the ethos of decentralization, fostering a system where integrity and security are upheld through a distributed peer-to-peer consensus network.
ROADMAP
Q2 2023
- Mainnet launch
- Exchange Listings (for oracle)
Q3 2023
- Testnet for Minimal Djed Implementation
- Marketing and branding
Q3/Q4 2023
- Launch Minimal Djed Implementation on Mainnet
Late Q4 2023
- Extended DJED research
Q1-Q2 2024
- Extended DJED implementation
FUNDING AND SUSTAINABILITY
Adequate funding is of paramount importance for the success and longevity of a project like Zephyr. This is why Zephyr has a robust treasury fund of 500,000 ZEPH, which not only covers operational costs but primarily serves as a strong reserve. This reserve is designed to bolster the protocol during adverse market conditions and provide liquidity when required, thus ensuring the protocol's stability and resilience.
In addition, Zephyr incorporates a 5% governance fee to guarantee ongoing development, marketing, and other operational activities. This fee facilitates the continuous enhancement of the Zephyr ecosystem, improving its features, user experience, and overall functionality. It also allows Zephyr to keep pace with technological advances and market trends.
These funding mechanisms are crucial for the project's longevity and robustness. By ensuring not only the protocol's launch but also its continuous growth and adaptation to the evolving needs of its users and the wider crypto market, Zephyr stands as a testament to a self-sustaining, resilient, and evolving protocol that is prepared for success in the long run.
MINING
Simple instructions:
Download or build a Zephyr wallet from github to generate an address.
Download or build mining softer (e.g. xmrig - https://github.com/xmrig/xmrig/releases)
Choose a mining pool from the list below
Edit config files or run with args e.g:
./xmrig -o pool.zephyrprotocol.com:3333 -u YOUR_ADDRESS -p x -k -a rx/0
MINING POOLS
Official Pool: https://pool.zephyrprotocol.com/
TBA
Please spread hashrate over all pools as they are added to avoid mining centralization!
SPECIFIC MINING POOL INFO
If you want to support Zephyr on your existing pool this info is important!
Zephyr requires a custom “cnBlobType” defined in cryptoforknote-util.
Please visit the pool and custom zephyr-cryptoforknote-util repos
https://github.com/ZephyrProtocol/zephyr-pool
https://github.com/ZephyrProtocol/zephyr-cryptoforknote-util
Alternatively, we have now submitted a PR for node-cryptoforknote-util that will allow you to add Zephyr to your pool here:
https://github.com/MoneroOcean/node-cryptoforknote-util/pull/21
Please contact the team on discord if you need more information.
LINKS
Website: https://www.zephyrprotocol.com/
Explorer: https://explorer.zephyrprotocol.com/
Twitter: https://twitter.com/zephyr_org
Discord: https://discord.gg/y4mzbDYSqQ
Github: https://github.com/ZephyrProtocol/Zephyr
Whitepaper: https://www.zephyrprotocol.com/s/Zephyr_Whitepaper_v1.pdf
CLI/GUI DOWNLOADS
v0.2.0: https://github.com/ZephyrProtocol/zephyr/releases/tag/v0.2.0
Exchanges
Seven Seas
- https://www.sevenseas.exchange/market/ZEPH-USDT
NonKYC
- https://nonkyc.io/market/ZEPH_USDT
- https://nonkyc.io/market/ZEPH_BTC
- https://nonkyc.io/market/ZEPH_XMR
