xYSL- Taking Deflationary To The Next Level

The token is unique in its very limited supply and automatic burns that are not tied to trading activities.

This article was written by Cxsteam, a cryptocurrency blogger unaffiliated with BSCNews.

Introducing xYSL

SafeMoon, move over! EverRise, it’s time to take a backseat. A new deflationary token model has been introduced and it has, in my opinion, a much better business case than any that have come before. 

Imagine a deflationary token that’s not reliant on trading activity. And instead of having a supply of 100 billion or 1 quadrillion tokens like other deflationary tokens out there, there are ONLY 100,000 tokens in existence. 

Let me stress that again. This token burns itself, every single hour, even if not a single buy or sell trade was made. Did I also mention that you can stake xYSL to earn rewards while watching it’s price appreciate from the ever dwindling supply? 

Interested? Give me 5 minutes to explain why I believe xYSL is going to the moon. 

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The Problem with “Traditional” Deflationary Tokens.

For those who are familiar with SafeMoons rise to fame, you’ll remember a time when the popular deflationary token skyrocketed to a market cap of $6 billion a mere 2 months after launching. Since then, it’s largely disappeared from mainstream media, either due to the recent downturn in market sentiment or just investors shifting towards newer, more “hyped up” projects. 

What you might not realise however, is that the entirety of SafeMoons’ (and many other popular deflationary tokens’) tokenomics is highly dependent on trading activity and investor confidence. Without sufficient trading volume and investors willing to hold the token, every sale causes the price to fall more than the price increase from the buyback mechanism. Today, despite the continuous burn of SAFEMOON tokens, the price of SAFEMOON has fallen approximately 66% since its all time high.

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YSL.IO’s X-tremely Deflationary Token – xYSL  

Deflationary Mechanism Independent of Trading Activity

Clearly, traditional deflationary mechanics aren’t working. With the newly announced xYSL token however, the team at YSL.IO believe they’ve found the magic ingredient, the missing piece of the puzzle if you will. They’ve improved the traditional deflationary model with the introduction of a deflationary mechanism that does not depend solely on trading activity!

By using a portion of the profits it generates from other services offered on the platform, YSL.IO can ensure that it market-buys and burns xYSL every single hour, regardless of xYSL trading activity. 

Since the platform’s primary product is a series of auto-compounding vaults that optimise and amplify your returns from providing liquidity on ApeSwap and PancakeSwap, this effectively means that it’s safe from swings in market sentiment. Bull market? Investors will provide liquidity in riskier LPs. Market takes a downturn into a bear market? Not a problem! Investors will shift their funds into stablecoin pairs. Either way, the vaults continue optimising, amplifying and generating profits for the YSL.IO platform. 

The above two features result in an hourly burn mechanism that is completely independent of trading activity and market sentiment. As there will only ever be a maximum of 100,000 xYSL tokens, I probably don’t have to explain how the constantly reducing supply should cause the price to skyrocket.  Investor confidence is a given once you realize this token essentially burns itself!

Stake and Earn Liquidity Mining Rewards 

Can you stake SafeMoon? Is your bag just sitting there hoping for an appreciation in price so that you can sell it off? Well with the xYSL token, you’re not solely reliant on a movement in price due to Liquidity Mining Rewards. 

Make your funds work for you by staking your xYSL or by providing xYSL-BUSD liquidity and staking the corresponding LP tokens in the corresponding xYSL vaults on YSL.IO. Both vaults are each allocated 50 sYSL tokens every day to be shared amongst all participants, giving you an additional source of income. 

As an additional benefit, any deposits into and withdrawals out of the single staking xYSL vault will be excluded from the 10% transaction fee! Investors can freely stake their xYSL into the vault and remove them at any time based on your strategy without constantly having to worry about the 10% fee. 

Part of the YSL.IO Ecosystem 

It’s important to note that xYSL is not a standalone token. The YSL.IO team have taken great care to fit it amongst their catalogue of existing products and ensure it complements the entire YSL.IO ecosystem like another piece of the overall puzzle.

While the xYSLs burn mechanism is funded partially by the APRs generated from the YSL.IO vaults, every transaction involving xYSL also contributes back to the ecosystem by way of increasing the YSL-BUSD locked liquidity on ApeSwap and thus the price floor of sYSL! This in turn increases the APR of the Liquidity Mining rewards we covered above (vaults pay out a fixed sum of sYSL every day, and now each of those sYSL tokens are worth more). 

For those unfamiliar with YSL.IO and how its products interact and complement each other, I highly recommend starting here. One of the pains of launching something completely unique in the market is that investors might find the concepts difficult to grasp at first. The YSL.IO team have tried to remedy this with a Busy Investor Guide series that breaks everything down into easily digestible, bite sized chunks. 

‍Source : bsc.news