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xYSL
xYSL is an X-tremely deflationary token that has been integrated within the YSL.IO ecosystem.

What is xYSL and its benefits?

xYSL is a hyper-deflationary token with a unique burning mechanism that has been integrated into our ecosystem. Each time an xYSL transaction is made, 5% of the tokens are burned. Burned tokens are sent to a dead address, meaning the xYSL are officially taken out of circulation – leaving the supply reduced by the amount burned. This reduction in the total supply (ceteris paribus) will force the value of the remaining tokens to appreciate!
In addition to the deflationary effect of transactions, the xYSL supply will also be reduced from our Quantum Buy-Back which requires our protocol to market buy xYSL every 8 hours, which means there will be a significant amount of the supply being burned on a daily basis.
This means that even if not a single xYSL token is traded on the market, xYSL will still continue to be burnt, leading to an increase in price. This independence from trading activity is a unique twist and competitive advantage xYSL has compared to all other deflationary tokens in the market today.
But that's not all - if you're a participant in the xYSL vault you'll be earning a share of the xYSL that's acquired from each Quantum Buy-Back. So not only will you benefit from the appreciation of xYSL, but you'll also be able to earn rewards every 8 hours by staking them!
All in all, xYSL offers a great opportunity to share in the success of our ecosystem through the protocols Quantum Buy-Back while benefiting from a unique deflationary model that actively decreases the supply every 8 hours, independent of trading activity.
👉 Don't miss your chance to secure xYSL V1 without paying any tax!

Salient features of xYSL include:

  • Quantum Buy-Back - the protocol market buys xYSL every 8 hours.
  • Deflationary Supply - the total supply guaranteed to decrease over time.
  • Virtue-Rewards - stake xYSL V2 to earn Virtue-Rewards (USDy) every 8 hours.
  • xBUSD Vault Burn - 10% of BUSD deposits will be used to purchase and burn xYSL.
  • V1 Transaction Burn - 5% of every xYSL V1 transaction is sent to the burn address.
  • V2 Transaction Burn - 5% of every xYSL V2 transaction is sent to the burn address.
  • Transaction Rewards - 5% of every V2 transaction is sent as rewards to the xYSL AceVault
  • MetaVault Ecosystem Allocation - the protocol market buys xYSL on every MetaVault deposit.
  • HydraVault Ecosystem Allocation - xYSL liquidity is created on every xYSL-BUSD HydraVault deposit.

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 deflationary supply is that tokens are steadily being removed from circulation, which reduces the available supply and increases the demand for 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.
Supply decreases --> Demand increases --> Price increases
With our protocol performing a Quantum-Buy Back every 8 hours, there will be a constant influx of liquidity and reduction in supply thanks to 5% of every xYSL transaction being sent to the burn address. As the price increases, holders would be incentivized to HODL their xYSL and take advantage of the incredible rewards offered by the xYSL AceVault, which would effectively reduce the circulating supply. This cycle of value creation will help ensure xYSL remains scarce and more valuable over time!

👉 Discover the Game Theory of xYSL

What is the supply of xYSL?

  • Max Supply Minted for V1: 80,000 xYSL 💎
  • Unsold tokens from ILO that were burnt: 16,245 xYSL 🔥
  • Total supply remaining after completion of ILO: 63,755 xYSL 🚀

👉 Learn about the V2 Migration Process for xYSL V1

What makes xYSL deflationary?

1️⃣ Burn Mechanism on every transaction
  • For every xYSL transaction (buy/transfer/sell) there will be a transaction tax applicable. As a result, 5% of every transaction will be sent to the burn address and will be removed for supply forever.
  • It's important to note that the transaction tax will be applicable when the protocol performs the Quantum Buy-Back. In other words, the supply of xYSL will be reduced every 8 hours.
2️⃣ Quantum Buy-Back every 8 hours
  • Every 8 hours xYSL will be purchased from the rehypothecation of vault assets. 5% of the xYSL will be sent to the burn address and the remaining xYSL that was acquired tokens will be distributed equally between the xYSL vault and SuperNova Lottery.
  • There are several benefits of the Quantum Buy-Back for xYSL. First, the supply of xYSL will be decreasing thanks to 5% being sent to the burn address. Second, 50% of the remaining xYSL will be used to increase the perpetual ratio of the xYSL vault - essentially removing it from circulation until vault participants decide to unstake. Third, as 50% of the remaining xYSL is allocated to a SuperNova prize winner, the holder would not be able to 'cash out' their winning all at once thanks to the Sigma Exit Rate (SER) - which means they would most likely deposit the xYSL into the xYSL AceVault to earn on their winnings, which temporarily reduces the circulating supply.

3️⃣ MetaVault Ecosystem Allocation

  • When a user makes a deposit into a MetaVault, 10% of their ecosystem allocation will be used to purchase xYSL. 5% of the acquired xYSL will be sent to the burn address and the remaining xYSL will be deposited into the xYSL AceVault at the start of the next epoch (increasing the Perpetual Ratio of the xYSL AceVault).

👉 Learn about the Quantum Buy-Back and the xYSL transaction tax

Last modified 18d ago