ZYS - Zephyr's New Savings System

What is ZYS?

ZYS is a cool new feature in the Zephyr ecosystem that dropped in mid-October 2024. Think of it as a super flexible savings account for your ZSD. Unlike traditional bank deposits, ZYS gives you complete freedom to deposit and withdraw your funds whenever you want, with no restrictions or lockup periods.

How Does It Work?

When you deposit your ZSD into the system, you receive ZYS tokens that represent your share of the yield pool. The really interesting part is how the yields are generated: every time a new block is mined, about 0.4 ZEPH (which is 5% of the block reward) gets automatically converted to ZSD at the current market price and added to the pool.

How Are Profits Calculated?

The profit distribution in ZYS is straightforward and fair. Your earnings are directly proportional to how many ZYS tokens you hold - the larger your share of the pool, the more profits you receive. This simple system ensures transparent and equitable distribution of yields among all participants.

Want to figure out your potential returns? Here's an example:

Block Reward = 9.590 ZEPH
Yield Reward = 5% × Block Reward = 0.479 ZEPH
Zeph Rate = 3 ZSD
Yield Share in ZSD = Yield Reward x Zeph Rate = 0.479 x 3 = 1.438 ZDS
Daily Yield Increase = 1.438 ZDS × (24 × 30) blocks = 1035.36 ZSD
Monthly Yield Increase ≈ 31,060 ZSD

Your Investment = 1,000 ZYS
Total Yield Shares = 500,000 ZYS
Your Share = Your Investment ÷ Total Yield Shares = 0.002
Monthly Return = Your Share × Monthly Yield Increase = 0.002 * 31,060 = 62.12 ZYS
Monthly ROI = (Your Return ÷ Your Investment) × 100% ≈ 6.21%

What's The Purpose?

The primary goal of ZYS is to encourage people to hold ZSD for longer periods instead of immediately trading it. By providing continuous yields, the Zephyr team aims to boost ZSD adoption and establish it as a widely used currency within the ecosystem. This innovative approach creates a win-win situation where users earn rewards while helping to strengthen the Zephyr ecosystem.

Additional Resources

  +  Zephyr Protocol Official Website: https://zephyrprotocol.com/
  +  Zephyr Blockchain Explorer: https://explorer.zephyrprotocol.com/
  +  ZSD Yield Hardfork Annoucement: https://zephyrprotocol.com/blog/2024-09-30-Zephyr-Protocol-v2-0-0-ZSD-Yield-Hardfork-Annoucement