The private untraceable stablecoin
Stablecoin
Mechanism
Understanding Djed in Zephyr Protocol
Zephyr Protocol’s adaptation of Djed is distinguished by its three core assets:
The foundational cryptocurrency of Zephyr Protocol, functioning as the base coin and decentralized protocol reserve asset in our Djed inspired stablecoin protocol.
The over-collateralized, private stablecoin of Zephyr Protocol. Pegged to the US Dollar backed by $ZEPH in the decentralized protocol reserve, valued as $1 worth of $ZEPH.
Representing a share of equity in the protocol’s reserve, these coins offer a stake in the protocol’s financial health and success.
Stability and reliability
A cornerstone of Zephyr Protocol's stablecoin mechanism is its over-collateralization, which bolsters the stablecoin's stability. Over-collateralization means that the protocol holds more collateral in reserve than the total value of the stablecoins in circulation. This over-collateralization ensures that there are always enough reserves to cover the circulating supply of the stablecoin. As in other Djed implementations, Zephyr Protocol defines a minimum reserve ratio of 400% which must be met to allow for additional stablecoin minting.
Zephyr Protocol inherits all privacy features of Monero, meaning that transactions of any core asset ($ZEPH, $ZSD or $ZRS) are untraceable and unlinkable, ensuring complete privacy of users. This enables Zephyr Protocol to give rise to the world’s first over-collateralized, private, crypto-backed stablecoin.
DecentralizationZephyr Protocol is a decentralized protocol, meaning that it is not controlled by any single entity. Zephyr Stable Dollars ($ZSD) are backed by an in-protocol reserve of Zephyr ($ZEPH), not by any centralized authority and not stored in any wallet. This is in stark contrast to traditional fiat-backed stablecoins, which are issued by a centralized authority with opaquely stored collateral which stands against the principles and ideals of cryptocurrency.
Stablecoin
Evolution
A concept refined through the innovative Djed Protocol
Djed originated from a collaboration between the Ergo Foundation, Emurgo (Cardano ecosystem), and IOHK and its first deployment was SigmaUSD on Ergo in 2021
A concept refined through the innovative Djed Protocol
Bridging the gap between privacy and stability, Zephyr leverages the proven mechanics of the Djed Protocol while encapsulating the robust privacy features inherent to Monero
This unique combination gives rise to the world’s first over-collateralized stablecoin that guarantees privacy — a major leap in the evolution of digital currencies