ZSD Yield Mechanism
Stake your ZSD to earn yield through Zephyr's innovative ZSD Yield system. Exchange your ZSD for Zephyr Yield Shares (ZYS) and watch your stake grow as new ZSD is added to the Yield Reserve. No lock-ups, no hassle—redeem your ZYS for ZSD anytime.
Current Variable APY: Loading...
Track the fluctuations in effective APY over time for the ZSD Yield Mechanism. This graph illustrates how the yield rate has adapted to market conditions, providing insight into the dynamic nature of the returns captured in the appreciation of ZYS.
Variable APY Rate History
ZYS Price
Yield Reserve and ZYS Circulation
Historical % Returns
Historical % Returns
Past Performance: Discover how the ZSD Yield Mechanism has driven the appreciation of ZYS over time. This section provides essential insights for potential stakers, helping them evaluate the consistency and potential of past yield returns.
It's important to note that performance is influenced by various factors, including ZEPH's price and the level of competition for the yield.
Projected % Returns
Future Projections: Explore estimated yield returns based on different ZEPH price scenarios and staking levels. Our projections cover a range of potential outcomes, including high and low yield rates, as well as projections based on the current network state.
While our approach aims to provide a realistic range, the nature of the mechanism means future return rates aren't knowable. However, we will continue to refine our projections over time to ensure they remain as accurate as we practically are able to.
Projected Returns
How ZSD Yield Works
The ZSD Yield Mechanism allocates 5% of the block reward to mint new ZSD, which is then added to the Yield Reserve. When you stake your ZSD, you receive Zephyr Yield Shares (ZYS), representing your share in this growing reserve. As more ZSD is added through the yield process, the value of ZYS appreciates. Unlike traditional yield systems, ZSD Yield offers flexibility with no lock-up periods—redeem your ZYS for ZSD whenever you wish.
This mechanism is similar to the proven Zephyr Reserve Share (ZRS) model but is tailored specifically for rewarding ZSD holders, making it an attractive option for those seeking returns while maintaining stability. To support the new ZSD generated, a total of 35% of the block reward is used to bolster the Reserve backing ZSD. The system results in a 7:1 ratio of new assets to new liabilities, thus targeting a healthy Reserve Ratio of 700%. This ensures that every ZSD in circulation is adequately backed, keeping the protocol resilient and sustainable.
