Zephyr launched in 2023 as a Monero fork with an algorithmic stablecoin based on the IOHK Djed protocol and a rival to the now defunct Haven protocol. In 2024 it was discovered the same Haven exploit had occurred on Zephyr thanks to Luke's findings. In spring of 2025 they conducted an audit and none of the inflated coins appeared through the turnstile thus establishing a narrative to regain trust.

Now, with the one dev who has vanished for the last several months with no word from him, the community is fearing a depeg of the ZSD stable coin, which occurs around $0.07. This may mark the end of a protocol which started off with hype and was buried by the lack of adoption following the inflation exploit.

I believed it had a lot of potential at the beginning as private stable coins would be welcomed warmly if they are ever done correctly. In my opinion if the stable coin depegs, it is a loss to the privacy community, but imo the protocol was abandoned long ago by the sole developer.