xYSL is an X-tremely deflationary token that has been integrated within the YSL.IO ecosystem.
Introducing xYSL - a hyper-deflationary token that's set to skyrocket thanks to constant buy pressure that's independent of market activity and an x-tremely low supply.
Unlike other deflationary tokens on the market, xYSL's supply reduction is completely independent of trading activity, thanks to the USDy token tax. Whereby every time USDy is sold or transferred, 10% of the transaction is used to market-buy xYSL, and the acquired tokens are sent straight to a dead address.
When burned tokens are sent to the dead address, they’re officially taken out of circulation – leaving the supply reduced by the amount burned. And with a reduced total supply (ceteris paribus), the value of the remaining tokens will naturally appreciate.
But here's where it gets even better - USDy is our ecosystem's reward token, so it's guaranteed to have a constant level of trading volume. As users continue to take a profit and the protocol grows, more and more xYSL will be purchased and burned. And you know what that means? An ever-increasing price for xYSL.
And if that wasn’t enough - we've also integrated a secondary burn mechanism with the xYSL token tax. Whereby, every time xYSL is sold or transferred, 2.5% of the transaction is collected and sent straight to the dead address, further reducing the supply.
So if you're looking for a unique opportunity to share in the success of our ecosystem, look no further than xYSL. Its strong fundamentals, constant buy pressure independent of trading activity, and constantly shrinking supply mean it’s definitely worth considering for your portfolio.
👉 Learn about The Three Pillars that support our ecosystem

xYSL Arbitrage Opportunity

  • As a seasoned investor, it's important to take advantage of arbitrage opportunities when they arise. The upcoming migration of xYSL V1 to V2 presents such an opportunity, as investors may be able to purchase xYSL V1 at a lower cost during the migration process. However, it's important to note that once xYSL V2 is live, it will be listed at a higher price of $120.
  • While this arbitrage opportunity may be tempting, it's important to be aware of the protocol's Price Stability Model (PSM) that all holders of xYSL V2 will be subject to. This means that investors must be willing to hold on to their xYSL V2 for a period of time before selling their entire balance. To mitigate this, investors can take advantage of the xYSL AceVault once it's launched, which will provide an opportunity to earn rewards while waiting to sell.
  • However, there is an exception to this rule. Holders of the Phoenix Ape NFT will be able to bypass the Sigma Exit Rate and sell 100% of their xYSL balance, while still being subject to the Daily Outbound Quota and Pool Transmittance Rate.


What makes xYSL deflationary?

1️⃣ V1 Transaction Burn Mechanism -> 5% of every transaction is burned

  • For every V1 transaction (buy/transfer/sell) there will be a tax applicable. As a result, 5% of every transaction will be sent to a dead address and will be removed from the supply forever.

2️⃣ V2 Transaction Burn Mechanism -> 2.5% of every transfer/sell is burned

  • For every V2 transfer/sell transaction, there will be a tax applicable. As a result, 2.5% of the transaction will be sent to a dead address and will be removed from the supply forever.

2️⃣ USDy Token Tax -> 10% of every transfer/sell is used to buy and burn xYSL

  • For every USDy transfer/sell transaction there will be a tax applicable. As a result, 10% of the transaction will be used to market-buy and burn xYSL removing the supply forever.

👉 Learn about the xYSL transaction tax

What will be the supply of xYSL?
  • The migration contract will only be able to mint a limited amount of xYSL V2. This amount will take into consideration xYSL V1 which has already been burnt and the xYSL V2 which has been minted to fuel the liquidity propulsion of xYSL V2.
  • xYSL V2 able to be minted by migration contract = 80,000 xYSL V1 max supply - (xYSL V1 balance held on V1 burn addresses + allocation of xYSL V2 minted for liquidity propulsion).
  • The initial allocation minted for the liquidity propulsion event will be based on the xYSL portion that is held currently held in the PancakeSwap liquidity pool (this will only be available for a limited period and can be burnt in the future).
  1. 1.
    Max Supply Minted for V1: 80,000 xYSL 💎
  2. 2.
    Unsold tokens from ILO that were burnt: 16,245 xYSL 🔥
  3. 3.
    Total supply remaining after completion of ILO: 63,755 xYSL 🚀
How will the xYSL migration work?
  • All tokens that have not been migrated during the 1500 days will be sent to the burn address and removed from the supply forever.
  • We have created a migration contract that will mint xYSL V2 when a user transfers their xYSL V1 tokens. The migration contract will be operational for a period of 1500 days, after which it will stop accepting xYSL V1.
How do I migrate my xYSL V1 tokens?
  • Holders of locked xYSL V1 will need to wait until their xYSL V1 tokens become unlocked before migrating to V2. The migration contract will be operational for a period of 1500 days, which provides ample time for users waiting for their xYSL V1 tokens to become unlocked.
  • Holders of unlocked xYSL V1 will simply need to send their xYSL V1 tokens to the migration contract and subsequently claim their xYSL V2 tokens.
What are the benfits of acquiring xYSL?
  • Deflationary Supply -> The total supply will gradually decrease over time.
  • Virtue-Rewards -> Stake xYSL to earn virtue-rewards (USDy) every 8 hours.
  • V1 Transaction Burn -> 5% of every V1 transaction is sent to the burn address.
  • V2 Transaction Burn -> 2.5% of every V2 transfer/sell transaction is sent to the burn address.
  • USDy Transaction Burn -> 10% of every USDy transfer/sell transaction will be used to buy and burn xYSL.
  • xYSL HydraVault Allocation -> 22.5% of every deposit made into the xYSL HydraVault creates xYSL-USDC treasury-owned liquidity. To create liquidity, xYSL is purchased using 11.25%.
  • Price Stability Model (PSM) -> A cutting-edge mechanism designed to balance the selling pressure and maintain the stability of xYSL's price.
What are the benefits of a deflationary supply?
When it comes to discussing the benefits of deflationary tokenomics, it's important to first understand what deflation is.
In simple terms, deflation is when the supply of a token decreases over time. This can happen through a variety of different mechanisms, such as burns or buybacks, or in the case of xYSL a combination of both. One of the key benefits of a deflationary supply is that tokens are steadily being removed from circulation, which reduces the available supply and increases the demand for the remaining tokens. This will help to support the long-term value of the token. Simply put, as the supply of the token decreases, the demand for it will increase, leading to forced price appreciation.

Other potential benefits of a deflationary supply include:

  • Increased scarcity: As the supply of a token decreases, it becomes rarer and more valuable. This can lead to increased demand and interest in the token.
  • Reduced volatility: Because the supply of a token is steadily decreasing, it may be less prone to significant price fluctuations. This can make it an attractive investment option for those who are looking for more stability in their portfolio.
  • Increased value over time: Deflationary tokens often see an increase in value over time due to the decreasing supply. As the supply of the token decreases, demand for the remaining tokens may increase, leading to a rise in value. This can be a benefit for those holding the token, as they may see an appreciation in value over time.

Supply decreases -> Demand increases = Price increases

  • Our protocol is designed to increase liquidity and reduce the supply of xYSL. Every time a USDy transfer or sell transaction is made, a transaction tax is applied and 10% of the transaction is used to purchase and burn xYSL, thereby reducing the supply permanently. Additionally, sending 2.5% of every xYSL transaction to a dead address helps maintain the scarcity and value of xYSL over time. As the price of xYSL increases, holders may be more inclined to hold onto their xYSL and benefit from the rewards offered by the AceVault, further decreasing the circulating supply.

👉 Discover the Game Theory of xYSL

Last modified 1d ago