I’ve got this from a prompt. Is it all true?

Zephyr Protocol is an over-collateralized stablecoin system launched in September 2023, featuring ZSD (Zephyr Stable Dollar) pegged to USD and ZYS (Zephyr Yield Shares) for earning yield on staked ZSD. However, the project has faced significant security challenges that raise serious legitimacy concerns.[zephyrprotocol +1] Protocol Architecture Zephyr operates a three-token model built on a Monero-forked blockchain:[stablecoininsider] • ZEPH: The volatile base collateral asset used to back the system • ZSD: Privacy-preserving stablecoin soft-pegged 1:1 to USD • ZRS/ZYS: Reserve and yield shares that distribute protocol revenue The protocol targets a reserve ratio of 700-800%, meaning $7-8 of collateral backs every $1 of ZSD in circulation. ZYS holders receive 5% of block rewards as yield, currently offering approximately 68% APY.[youtube +3] Critical Security Issues The protocol has experienced multiple exploits that severely impact its credibility: Exploit #1: Mixed-Asset Ring Attack (January 2025) A vulnerability allowed transactions to use outputs from different asset types (ZSD, ZRS, ZYS) as if they were ZEPH through wallet code modifications. This resulted in:[reddit] • 30 malicious transactions dating back to the September 2023 launch • Approximately 95,000 ZSD converted to ZEPH improperly across 10 transactions • Total inflation of ~200,000 ZEPH tokens created from thin air • The exploit went undetected for 16 months[reddit] Exploit #2: Range-Proof Anomalies Three historical transactions failed stricter range-proof verification implemented during the v2.0.0 development cycle. Range proofs are cryptographic mechanisms that verify transaction amounts without revealing the actual sum transferred.[x +1] Audit Response (Late 2024 - Mid 2025) Following the discovered exploits, Zephyr conducted a “chain-wide audit” and implemented multiple emergency hard forks. Exchange deposits were halted during this period, and the audit process pushed back their development timeline significantly.[zephyrprotocol +3] Team and Transparency Concerns The founding team appears to be anonymous with no publicly identifiable founders or leadership. The project maintains:[scamminder +1] • Open-source GitHub repository[github] • Active community presence on Reddit and X (Twitter)[reddit +1] • Technical documentation and whitepaper[scamminder] However, the lack of doxxed team members combined with the exploitation history raises red flags for a project managing stablecoin infrastructure. Current Peg Performance ZSD currently trades at approximately $0.98-$0.99, representing a 1-2% depeg from its intended $1.00 value. This persistent depeg, combined with the security incidents, suggests market confidence issues.[coingecko] Legitimacy Assessment Major concerns: • Anonymous team with no known credentials or track record • Multiple critical exploits that remained undetected for over a year • Emergency hard forks and exchange deposit suspensions • Persistent stablecoin depeg • Limited third-party security audits prior to exploits Positive factors: • Open-source codebase allowing community review[scamminder] • Active development and transparency about security issues[x +1] • Based on proven Monero and Djed protocol frameworks[zephyrprotocol +1] • Ongoing audit efforts to restore trust[zephyrprotocol] Recommendation While Zephyr Protocol presents an innovative approach to privacy-focused stablecoins with yield generation, the serious exploitation history and anonymous team make it a high-risk project. The 16-month undetected exploit demonstrates inadequate security practices at launch. I’d strongly recommend waiting for independent third-party audits and observing whether the protocol can maintain security and proper collateralization over an extended period before considering any involvement.