Zephyr Protocol is a crypto-backed, over-collateralized, private, decentralized Stablecoin protocol; inspired by the Djed Protocol on a native Monero based chain, inheriting all privacy features for all assets. Launched on 29/05/2023.

Zephyr Protocol uses a three asset model: ZEPH, ZSD and ZRS.

**ZEPH** is the “Base coin” which is used as the collateralization in the stablecoin protocol as well as minting ZSD and ZRS by adding the equivalent ZEPH value to the reserve.

**ZSD** - Zephyr Stable Dollar - is a Private Stablecoin, backed by at least 400% equivalent value in ZEPH at time of minting.

**ZRS** - Zephyr Reserve Shares - is the “Reserve coin” which represents a share of the excess equity of the reserve. Users mint ZRS in return for adding ZEPH to the reserve. ZRS coins act as shares of the reserves excess equity and the value of ZRS is formulaically calculated in protocol. Simplified, the value of ZRS is correlated to the reserve ratio, dropping when reserves are low and increasing when reserves are high. To avoid dilution for the ZRS holders, there is a maximum reserve ratio of 800% at which time no more ZRS can be minted.