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🌊 YSL.IO Auto-Lock Liquidity
YSL.IO is designed to actively create locked YSL-BUSD liquidity whilst fully utilising its benefits.

What is Locked Liquidity?

Locked liquidity is formed when LP tokens are locked for a predetermined period on a Decentralised Automated Market Maker (AMM). This is achieved through the utilisation of smart contracts referred to as 'liquidity lockers'. These liquidity lockers have been developed as a result of an increased number of exit scams and rug pulls within the DeFi space.
The core benefit of Locked Liquidity is that it provides assurance, enhancing an investors’ trust in the project by showcasing that the liquidity is locked and cannot be removed arbitrarily by the team. This not only cements a project's legitimacy but will also stimulate growth through community confidence. With this in mind, YSL.IO leverages a special vesting factory (locked liquidity smart contract) offered by ApeSwap Finance for the price discovery phase and for all future creation of locked liquidity. This smart contract will lock all the YSL-BUSD LP tokens generated upon the establishment of the YSL-BUSD pool on ApeSwap Finance. By doing so, any power of having the liquidity transferred is effectively removed, and to provide peace of mind to participants, we have set the predetermined lock period to 1000 years.

How does YSL.IO create Locked Liquidity?

βœ… YSL.IO Optimisation

When a user decides to harvest their sYSL rewards, the protocol will sell the Compounded Returns generated from the user's position into BUSD. 100% of the acquired BUSD will then be used to create 200% of locked YSL-BUSD liquidity. To do this, the protocol will match the BUSD, by minting an equivalent value of YSL tokens.
Following this, the sum total of BUSD and minted YSL tokens are deposited into the YSL-BUSD pool held on ApeSwap Finance. Finally, the LP tokens received from ApeSwap Finance are sent to the ApeSwap Finance locked liquidity contract (vesting factory) for a predetermined period of 1000 years, creating locked liquidity equivalent to 200% of Compounded Returns generated from the user's position!
Please note: only once the YSL-BUSD locked liquidity has been created will the protocol perform the steps required to generate sYSL Rewards and Referral Rewards (if applicable) for the user(s).

βœ… Transactions involving the xYSL token

Any transaction involving the xYSL token will be subject to a 12.5% fee (by setting the slippage to a minimum of 12.5%). These fees are collected and split three ways:
  1. 1.
    Burn xYSL tokens - 5% of the fee in xYSL tokens are burnt, contributing to the ever deflationary supply of xYSL.
  2. 2.
    Team wallet - 5% of the fee is sold for BUSD then transferred to the YSL.IO team wallet in order to pay for operational and marketing expenses.
  3. 3.
    Create YSL-BUSD locked liquidity - The remaining 2.5% of the fee is sold for BUSD, while the protocol then mints an equivalent amount of YSL. These are paired and deposited in the YSL-BUSD locked liquidity contract.

βœ… ApeSwap Finance trading fee reward

The locked liquidity that is held in the YSL-BUSD pool on ApeSwap Finance will benefit from the 0.15% trading fee reward that is distributed to ApeSwap Finance liquidity providers. This reward is generated from a 0.2% fee that is deducted whenever a trade is performed on the ApeSwap Finance platform, with 0.15% being added back to the liquidity pool of the swap pair being traded on.
In other words, 100% of this fee will be added back into the YSL-BUSD liquidity pool each time a trade is performed on the YSL-BUSD swap pair. Given that all YSL-BUSD LP tokens received by the protocol are sent to the ApeSwap Finance locked liquidity contract (vesting factory) for a predetermined period of 1000 years, the reward is essentially forming part of YSL-BUSD locked liquidity. This effectively means that the amount of YSL-BUSD locked liquidity will increase each time a trade is performed on the YSL-BUSD swap pair!

βœ… Price discovery of the YSL and sYSL token

Prior to the launch of the platform, there was a 30-day price discovery phase for the YSL.IO utility token (YSL) and governance token (sYSL). Upon its conclusion, 50% of the BUSD acquired was used to establish the YSL-BUSD liquidity pool on ApeSwap Finance. To do this, the protocol first matched 50% of BUSD by minting an equivalent value of YSL tokens. The BUSD and minted YSL tokens were then sent to establish the YSL-BUSD liquidity pool on ApeSwap Finance. All the LP tokens received from ApeSwap Finance are subsequently sent to the ApeSwap Finance locked liquidity contract (vesting factory) for a predetermined period of 1000 years. This ultimately resulted in the formation of locked liquidity the equivalent to 100% of the BUSD acquired from the price discovery phase.

AAM Migration and Locked Liquidity

​PancakeSwap has recently announced that they are making a transfer "migration" of their current contracts to V2. This upgraded version will feature new smart contracts that allow for additional incentives and functionality.
At first glance, this may seem problematic if ApeSwap Finance were to conduct a similar migration. As any transfer of the YSL-BUSD locked liquidity would be practically impossible, due to all the LP tokens being held in the locked liquidity contract for a period of 1000 years. To work around the immobility, a fail-safe mechanism has been put in place that would enable ApeSwap Finance to unlock the LP tokens in the event of a migration. Upon doing so, the LP tokens will subsequently be sent to the beneficiary (YSL.IO), and the YSL-BUSD liquidity can then be migrated to the upgraded version of ApeSwap Finance.
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πŸ‘‰ Read our BIG (Busy Investor Guide) to learn more about YSL.IO Auto-Lock Liquidity!

Last modified 10d ago