Zephyr Protocol — Artemis V1.2.0
$ZEPH team finally released update Zephyr Protocol — Artemis v1.2.0 , introducing major enhancements to improve functionality, user adoption, and security. This update includes critical protocol changes, fee adjustments, and the latest Monero developments. The Artemis v1.2.0 update comprises of two hardforks; v4 and v5.
Hardfork V4
Finally activated at block 294000. July 14th, 2024 at 01:00 UTC (approx).
Update activates the new pricing record format to save previous reserve ratio values in the pricing record.
Hardfork V5
Finally activated at block 295000. July 15th, 2024 at 01:00 UTC (approx).
The reserve ratio moving average is now derived from an average of previous reserve ratio values over a 24 hour period, made possible from the pricing record changes in Hardfork v4. Collecting the pricing records from the 1000 blocks between hardforks allows for the new moving average figures to be calculated.
This method smooths out fluctuations when Zephyr Stable Dollars are minted or redeemed, and removes the possibility for a bad actor to manipulate the reserve ratio by minting/redeeming ZSD which would previously immediately affect both the spot and the moving average reserve ratios. In order to support lowering the miniting/redeeming fees for ZSD this was a required change, as the higher fees was the factor that diswaded this behavior.
Old calculation:
RR_Spot = (Zeph_Reserve * Spot_Price) / ZSD_Circulation
RR_MA = (Zeph_Reserve * MA_Price) / ZSD_Circulation
rr_ma Immediate ZSD mints result in instant rr_ma crush
New calculation:
RR_Spot = (Zeph_Reserve * Spot_Price) / ZSD_Circulation
RR_MA = (sum of past 720 RR_Spot values) / 720
Fee Adjustments:
Mint ZSD: 2% → 0.1%
Redeem ZSD: 2% → 0.1%
Mint ZRS: 0% → 1%
Redeem ZRS: 2% → 1%
Conclusion
Zephyr Protocol v1.2.0 hard fork introduces critical changes to enhance the protocol’s functionality, user adoption, and security. These changes aim to lower barriers to entry, promote ZSD adoption, and maintain the ZSD peg through improved liquidity and arbitrage opportunities.
Full update article: https://zephyrprotocol.com/blog/2024-05-22-Zephyr-Protocol-Artemis-v1-2-0-Release
