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FAQ - YSL.IO Amplification
Answers to frequent questions about the YSL.IO amplification function.

What are aYSL tokens?

    aYSL tokens are amplification tokens that are issued to user's that utilise strategy 2 amplification.
    aYSL tokens are BEP-20, which means users are able to transfer their aYSL tokens to any wallet of their choosing.
    The price of the aYSL token will not be tethered to any token, instead it will maintain a stable price of $1.00. To purchase aYSL tokens, a user will need to provide either WBNB or BUSD via the amplify tab.
    aYSL token purchases will be subject to a 10% aYSL Surcharge. This will be collected on top of the value provided by the user (in addition to gas costs).
      For example, if a user requires $100 worth of aYSL tokens, they will need to provide $110 worth of WBNB or BUSD.
    When a user decides to sell their aYSL tokens, the protocol will burn the aYSL tokens provided and subsequently mint an equivalent value of sYSL tokens for the user.
      For example, if a user sells $100 worth of aYSL tokens, the protocol will burn the aYSL tokens provided and subsequently mint sYSL tokens equivalent to $100 for the user.
    Please note: every new sYSL token that is minted after the discovery will be subject to a vesting period of 180 days, whereby the minted amount will be unlocked on each block over a period of 180 days.

How is the aYSL token linked to the activation of Strategy 2?

    The protocol will actively compare the value of aYSL tokens held by a user in comparison to their current TVL held on YSL.IO (excluding the sYSL, xYSL, YSL-BUSD, sYSL-BUSD and xYSL-BUSD vaults).
    This means that as a user's TVL on YSL.IO grows (due to the compounding of LP tokens), the percentage value of aYSL they hold in comparison to their TVL will decrease, and the user will need to acquire more aYSL tokens to maintain the 10% minimum required to activate Strategy 2.
    For example, let's assume a user has a TVL on YSL.IO of $1,000 and purchases $200 worth of aYSL tokens, 20% of their current TVL.
      The protocol will activate Strategy 2 Amplification. Once the user's TVL grows above $2,000, the protocol will deactivate Strategy 2. This is because the user no longer holds the minimum balance of aYSL tokens required to activate Strategy 2.
      To reactivate Strategy 2, a user will need to purchase additional aYSL tokens to maintain a balance above or equal to 10% of their current TVL held on YSL.IO (excluding the sYSL, xYSL, YSL-BUSD, sYSL-BUSD and xYSL-BUSD vaults).

What happens to YSL.IO Optimisation when Strategy 2 is activated?

    The protocol will automatically deactivate YSL.IO Optimisation and apply the amplification obtained from Strategy 2. This is illustrated in the scenario below:
Suppose a DeFi user currently holds a farming position of $10,000 on the CAKE-BNB vault on PancakeSwap.
YSL.IO Optimisation activation:
    YSL.IO Optimisation is activated when the user deposits their CAKE-BNB LP tokens ($10,000) into the CAKE-BNB vault held on YSL.IO, ensuring PancakeSwap has been selected on the vault interface.
The user decides to take advantage of Strategy 2:
    This will require the user to provide either WBNB or BUSD via the amplify tab in exchange for aYSL tokens.
    Let's suppose the user purchases $1,000 worth of aYSL tokens (10% of $10,000). Please note: there will be a 10% aYSL surcharge on the purchase ($100).
    As the user currently holds aYSL tokens equivalent to 10% of their TVL on YSL.IO, the protocol will activate Strategy 2 and deactivate YSL.IO Optimisation.
    Please bear in mind; Once the user's TVL grows above $10,000, the protocol will deactivate Strategy 2. This is because the user no longer holds the minimum balance of aYSL tokens required to activate Strategy 2. Therefore it is advisable to maintain a balance of aYSL tokens greater than 10% of the current TVL held on YSL.IO (excluding the sYSL, xYSL, YSL-BUSD, sYSL-BUSD and xYSL-BUSD vaults).

What happens to Strategy 1 when Strategy 2 is activated?

    The protocol will automatically deactivate Strategy 1 and apply the amplification obtained from Strategy 2. This is illustrated in the scenario below:
Suppose a DeFi user currently holds a farming position of $10,000 on the BUSD-BNB vault on PancakeSwap.
Strategy 1 activation:
    Let's suppose the user connects to YSL.IO via a referral link.
    When the user deposits their BUSD-BNB LP tokens ($10,000) into the BUSD-BNB vault held on YSL.IO, the new user will benefit from Strategy 1 Amplification.
    The existing user that referred the new user will benefit from Referral Rewards when the new user decides to harvest their position, with the existing user receiving sYSL tokens equivalent to 10% of the new users compounded returns.
The new user decides to take advantage of Strategy 2:
    This will require the user to provide either WBNB or BUSD via the amplify tab in exchange for aYSL tokens.
    Let's suppose the user purchases $1,000 worth of aYSL tokens (10% of $10,000). Please note: there will be a 10% aYSL surcharge on the purchase ($100).
    As the user currently holds aYSL tokens equivalent to 10% of their TVL on YSL.IO, the protocol will activate Strategy 2 and deactivate Strategy 1.
    Please bear in mind; Once the user's TVL grows above $10,000, the protocol will deactivate Strategy 2. This is because the user no longer holds the minimum balance of aYSL tokens required to activate Strategy 2. Therefore it is advisable to maintain a balance of aYSL tokens greater than 10% of the current TVL held on YSL.IO (excluding the sYSL, xYSL, YSL-BUSD, sYSL-BUSD and xYSL-BUSD vaults).
    The referrer will continue to benefit from the new user's position, with the referrer still receiving Referral Rewards equivalent to 10% of the new users compounded returns when the new user performs a harvest.
Last modified 5d ago