Zephyr represents the evolution of digital currency, combining security, privacy, and decentralization with its core innovation - the Zephyr Protocol. The Zephyr Protocol, at its heart, is an over-collateralized, crypto-backed algorithmic stablecoin system, a concept refined through the innovative Djed Protocol. Djed's roots can be traced back to the AgeUSD protocol, a joint creation of the Ergo Foundation, Emurgo (Cardano ecosystem), and IOHK.
Source: www.zephyrprotocol.com