Inside the protocol

Four coins, two Reserves. Follow the journeys in order, or pick one.

Preparing protocol model…
ZEPH
Base coin
ZSD
Private $1
ZRS
Reserve equity
ZYS
Earns yield
R
The Reserve
Y
The Yield Reserve
Layers

ZRS, the Reserve's equity

Why ZRS moves harder than ZEPH

ZRS is the Reserve's equity: its assets, the ZEPH it holds, less its liabilities, every ZSD at $1. It works like the equity in a house with a mortgage: the house is the asset, the mortgage the liability, and what's left is yours.

When the house's price moves, the mortgage doesn't, so the equity moves further. ZRS does the same with ZEPH, both ways.

A modern house lit in lilac, with the ZRS coin in front of it: the house's equity is what ZRS owns in the Reserve.
The house and the Reserve, side by side

At a 400% ratio, a +50% move in ZEPH moves ZRS +67%: 1.33× as far.

A house with a mortgage, and Zephyr's Reserve, after the same price move
A house IllustrativeZephyr's Reserve Live
What it's worthAssets: the house · the Reserve's ZEPH$1.2Mwas $800K—
What it owesLiabilities: the mortgage · ZSD at $1, fixed$200Kstays put—
The equityAssets − liabilities: yours · ZRS's$1Mwas $600K—
The equity moves+67%—

The house's mortgage is set to the Reserve's ratio today, so both lines move alike. Illustrative: new ZRS minted or redeemed along the way would change the split, not the shape.

The thinner the equity, the harder ZRS moves

The lower the reserve ratio, the less equity sits over what's owed, so each move in ZEPH lands harder on ZRS. Move along the curve to read any ratio.

Reserve ratio
400%
ZRS moves
1.33×
as far as ZEPH
A 10% ZEPH move
13.3%
on ZRS
The equity
75%
of the Reserve

Why hold ZRS

  • Leverage on ZEPH, with no liquidation. No margin, no funding rate, no loan to call in: the leverage comes from the Reserve's own balance sheet.
  • The Reserve's growth goes to ZRS. 30% of every block's ZEPH goes into the Reserve, and conversion fees stay there. Both add to the equity.
  • Not diluted at the top. Above 800% no new ZRS can be minted, so a Reserve that's doing well isn't shared out with newcomers.
  • It cuts both ways. In a fall ZRS takes the loss first, so ZSD stays backed, and while the Reserve is under 400% ZRS can't be redeemed until it recovers. Read the risk
Model ZRS in the Simulator How to get ZRS

Get started

Buy ZEPH, then put it to work

  1. Buy ZEPH

    Pick an exchange and buy ZEPH with USDT.

    MEXCXTNonKYC

  2. Get the wallet

    Withdraw your ZEPH to your own Zephyr wallet, on the web or as a download.

    Open the web wallet Downloadable wallets

  3. Put it to work

    Convert ZEPH to ZSD in the wallet, then stake it as ZYS. It earns from the next block.

    Step by step

Not ready yet? Follow @zephyr_org on X or join the Discord for news, like the Ethereum bridge launch.

Next The proof: live yield ZYS against the six major stablecoin yields we track, its record since launch, and every figure straight from the chain.