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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 a Liquidity Pool?

Liquidity pools are a significant step forward in which on-chain trades are executed, removing the need for an order book on token pairs that may be illiquid. In essence, these pools are a collection of funds locked within a smart contract to create a market. These liquidity pools are formed when a user adds an equal value of two tokens (liquidity). Once a user provides liquidity (liquidity provider), they will receive LP tokens (liquidity pool tokens) in return. These LP tokens act as proof of ownership, allowing users to withdraw their tokens at any point in time.

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.

YSL-BUSD Locked Liquidity

Upon completion of the Price Discovery Phase, the YSL.IO protocol established a YSL-BUSD pool on ApeSwap Finance. All of the YSL-BUSD LP tokens that were received from ApeSwap Finance was immediately deposited into a locked liquidity contract (ApeSwap Finance vesting factory) for a predetermined period of 1000 years. This resulted in the formation of locked liquidity equivalent to 100% of the WBNB and BUSD collected during the price discovery phase.
Following this, the protocol has a multi-faceted approach to ensure there is a continual formation of locked YSL-BUSD liquidity. One of the benefits of continually creating locked liquidity relates to the link held between sYSL and YSL-BUSD liquidity, whereby the price floor of the sYSL token is dependent upon the sum total of YSL-BUSD locked liquidity. In other words, any increase in locked liquidity will inadvertently result in the price floor appreciation of the sYSL token. With this in mind, the YSL.IO protocol has been specifically designed to generate locked YSL-BUSD liquidity autonomously through several in-built mechanisms:
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​Price discovery phase (100% equivalent value created)
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​Purchase of YSL tokens (100% equivalent value created)
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​Purchase of sYSL tokens (200% equivalent value created)
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​ApeSwap trading fee reward (100% equivalent value created)
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​Balance transfers between vaults (200% equivalent value created)
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​Auto-Locked Liquidity Mechanism (200% equivalent value created)
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​YSL.IO Optimisation / Amplification (200% equivalent value created)
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​Balance transfers into the sYSL vault (200% equivalent value created)
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​Purchase of aYSL tokens (Strategy 2) (200% equivalent value created)
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​Balance transfers into the YSL-BUSD vault (50% equivalent value created)
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​Balance transfers into the sYSL-BUSD vault (100% equivalent value created)
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​Withdrawals from the YSL-BUSD vault - LP token deposit (100% equivalent value created)
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​Withdrawals from the YSL-BUSD vault - Transfer deposits (100% equivalent value created)

1. Price discovery of the YSL and sYSL token

Prior to the launch of the platform, there was a price discovery for the YSL.IO utility token (YSL) and governance token (sYSL). The price discovery phase commenced with a 23-day private sale, followed by a 7-day public sale.
Upon the conclusion of the 30-day price discovery phase, the BUSD acquired was used to establish the YSL-BUSD liquidity pool on ApeSwap Finance. To begin, the protocol 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.

2. ApeSwap Finance trading fee reward for liquidity providers

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!

3. Auto-Locked Liquidity Mechanism

The Auto-Locked Liquidity Mechanism will generate locked liquidity every hour by utilising the BUSD acquired from the Optimisation Tax, Amplification Tax, aYSL Surcharge, sYSL Entrance Fee and the sYSL Exit Fee. The BUSD that is accumulated each hour is used to create YSL-BUSD liquidity equivalent to 200%!
To do this the protocol will mint YSL tokens equivalent in value to the accumulated BUSD. 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 the BUSD!

4. YSL token purchases utilising the exchange function on YSL.IO

The YSL token will be available for purchase after completion of the price discovery phase and upon being listed on ApeSwap Finance. Users will be able to send any token listed on YSL.IO (inbuilt exchange interface) in exchange for YSL tokens. Any token sent by the user will be converted by the protocol into BUSD immediately.
50% of the BUSD acquired will go towards purchasing YSL tokens from the YSL-BUSD liquidity pool. Subsequently, the protocol will match the purchased amount by minting an equivalent value of YSL tokens. The sum total (100%) of purchased and minted YSL tokens are then sent to the user.
The protocol will then match the remaining 50% of acquired BUSD, by minting an equivalent value of YSL tokens. The sum total of the BUSD and minted YSL (100%) is then deposited into the YSL-BUSD liquidity pool held on ApeSwap Finance.
To conclude the process, the YSL-BUSD LP tokens received from ApeSwap Finance are sent to the ApeSwap Finance locked liquidity contract (vesting factory) for a predetermined period of 1000 years, effectively creating YSL-BUSD locked liquidity equivalent to 100% of the value provided for the token purchase.

5. sYSL token purchases utilising the exchange function on YSL.IO

The sYSL token will be available for purchase after the completion of the price discovery phase. Thereafter, the sYSL token will be available for purchase through the exchange function on YSL.IO. Users will be able to send any token listed on YSL.IO (inbuilt exchange interface) in exchange for sYSL tokens. The tokens sent by the user will be converted into BUSD immediately. The protocol will subsequently deduct a 10% sYSL entrance fee from the acquired BUSD. The deducted BUSD is then immediately converted by the protocol into BUSD. The sum total of BUSD is then immediately split 50:50, with 50% being sent to the Auto-Locked Liquidity Mechanism and the remaining 50% will be used to purchase and burn the xYSL token. The protocol will then match the remaining 90% of BUSD, and mint an equivalent value of sYSL tokens for the user.
The remaining BUSD (90%) will then be contributed towards locked liquidity. Before doing so, the protocol will match the amount of acquired BUSD by minting an equivalent value of YSL tokens. The BUSD and the minted YSL tokens will then be sent to the YSL-BUSD liquidity 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 the value provided to the user!

6. YSL.IO Optimisation and YSL.IO Amplification

YSL.IO Optimisation and YSL.IO Amplification will maximise the returns of third-party tokens by utilising traditional optimisation methods of harvesting and auto-compounding whilst leveraging locked liquidity to generate Optimised/Amplified Yields (APY) of up to 325%.
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 Optimised/Amplified Yields (sYSL tokens) and Referral Rewards (if applicable) for the user(s).

7. Purchase of aYSL tokens for Strategy 2 Amplification

To activate Strategy 2 Amplification a user will need to provide either WBNB or BUSD via the amplify tab equivalent to 110% of their desired purchase amount, with the protocol will converting any WBNB provided by the user into BUSD immediately.
100% of the BUSD provided/acquired will be contributed as locked liquidity to the YSL-BUSD pool held on ApeSwap Finance. To do this, the protocol will first mint YSL tokens equivalent to 100% of the BUSD (provided/acquired), and the sum total of BUSD and minted YSL tokens are deposited into the YSL-BUSD liquidity pool. Following this, the protocol will create amplification tokens (aYSL) for the user, and all the YSL-BUSD LP tokens are sent to the ApeSwap Finance locked liquidity contract (vesting factory) for a predetermined period of 1000 years, effectively forming locked liquidity equivalent to 200% of the value provided by the user!

8. YSL.IO vault transfers

A transfer fee of 0.1% is applicable on balance transfers made between vaults, this fee is in addition to the applicable gas costs. 100% of the transfer fee deducted when a user makes a balance transfer will go towards the creation of YSL-BUSD locked liquidity.
The transfer fee is deducted from the balance (LP tokens) being transferred. The protocol will immediately convert the LP tokens into BUSD. Subsequently, the protocol will match the BUSD acquired by minting an equivalent value of YSL tokens. The BUSD and minted YSL tokens are then deposited into the YSL-BUSD liquidity pool held on ApeSwap Finance. The LP tokens received from ApeSwap Finance are then locked within the ApeSwap Finance locked liquidity contract (vesting factory) for a predetermined period of 1000 years, forming locked YSL-BUSD liquidity equivalent to 200% of the transfer fee.

9. Balance transfers into the sYSL vault

In addition to depositing purchased and/or harvested sYSL tokens, users are also able to make transfers into the vault by utilising the transfer function on YSL.IO. This allows a user to perform a balance transfer from any active vault into the sYSL vault.
Upon doing so, the protocol will instantaneously exchange the transferred LP tokens for an equivalent value of BUSD (less any applicable fees). Balance transfers into the vault will have an sYSL entrance fee. This fee is applicable whenever the sYSL token is purchased using another token. The protocol deducts the 10% fee from the BUSD acquired. The 10% fee (BUSD) will then be immediately converted by the protocol into BUSD. The sum total of BUSD collected from sYSL entrance fees' are then immediately split 50:50, with 50% being sent to the Auto-Locked Liquidity Mechanism, the remaining 50% will be used to purchase and burn the xYSL token.
The protocol will then match the remaining BUSD, and mint an equivalent value of sYSL tokens. These tokens are subsequently deposited into the sYSL vault, and the user will receive sYSL LP tokens. The remaining BUSD acquired will then go towards forming YSL-BUSD locked liquidity. To do so, the protocol will first match the remaining BUSD by minting an equivalent value of YSL tokens. The sum total of BUSD and minted YSL tokens are then deposited into the YSL-BUSD liquidity pool held on ApeSwap Finance. Following this, the LP tokens are directed to the ApeSwap Finance locked liquidity contract (vesting factory) for a predetermined period of 1000 years, resulting in the formation of locked liquidity equivalent to 200% of the sYSL provided to the user.

10. Balance transfers into the YSL-BUSD vault

In addition to depositing YSL-BUSD LP tokens, users are also able to make transfers into the YSL-BUSD vault by utilising the transfer function on YSL.IO. This allows a user to perform a balance transfer from any active vault (excluding the sYSL vault) into the YSL-BUSD vault. Upon doing so, the protocol will instantaneously exchange the transferred LP tokens for an equivalent value of BUSD (less any applicable fees). 25% of the acquired BUSD will be used to form the equivalent of 50% locked liquidity for the YSL-BUSD pool held on ApeSwap Finance.
Before doing so, the protocol will first need to purchase YSL tokens from the market equivalent to 25% of the BUSD acquired. Following this, the protocol will mint an equivalent value of YSL tokens. The purchased (25%) and minted (25%) YSL tokens are then deposited along with 50% of the acquired BUSD to the YSL-BUSD pool held on ApeSwap Finance. Subsequently, the protocol will deposit the YSL-BUSD LP tokens acquired from ApeSwap Finance into the users YSL-BUSD vault on YSL.IO.
The remaining 25% of acquired BUSD will be used to create locked liquidity. To do this, the protocol will first match the BUSD by minting an equivalent value of YSL tokens. The BUSD and minted YSL tokens are then deposited into the YSL-BUSD liquidity pool held on ApeSwap Finance. The LP tokens are subsequently sent to the ApeSwap Finance locked liquidity contract (vesting factory) for a predetermined period of 1000 years, resulting in the formation of locked liquidity equivalent to 50% of the balance transfer!

11. Balance transfers into the sYSL-BUSD vault

In addition to depositing sYSL-BUSD LP tokens, users are also able to make transfers into the sYSL-BUSD vault by utilising the transfer function on YSL.IO. This allows a user to perform a balance transfer from any active vault (excluding the sYSL vault) into the sYSL-BUSD vault.
Upon doing so, the protocol will instantaneously exchange the transferred LP tokens for an equivalent value of BUSD (less any applicable fees). Balance transfers into the vault will have an sYSL entrance fee. This fee is applicable whenever the sYSL token is purchased using another token. The protocol deducts the 10% fee from the BUSD acquired. The 10% fee (BUSD) will then be immediately converted by the protocol into BUSD. The sum total of BUSD collected from sYSL entrance fees' are then immediately split 50:50, with 50% being sent to the Auto-Locked Liquidity Mechanism, the remaining 50% will be used to purchase and burn the xYSL token.
The protocol will then match 50% of the remaining BUSD, and mint an equivalent value of sYSL tokens. 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 sYSL tokens will be unlocked on each block over a period of 180 days. The BUSD and minted sYSL tokens are then paired and deposited by the protocol into the sYSL-BUSD pool, and the sYSL-BUSD LP tokens received in exchange being subsequently deposited by the protocol into users sYSL-BUSD vault.
The remaining 50% of BUSD acquired will then go towards forming YSL-BUSD locked liquidity. To do so, the protocol will first match the remaining BUSD by minting an equivalent value of YSL tokens. The sum total of BUSD and minted YSL tokens are then deposited into the YSL-BUSD liquidity pool held on ApeSwap Finance. Following this, the LP tokens are directed to the ApeSwap Finance locked liquidity contract (vesting factory) for a predetermined period of 1000 years, resulting in the formation of locked liquidity equivalent to 100% of the sYSL-BUSD LP tokens provided to the user!

12. Withdrawals from the YSL-BUSD vault (LP token deposit)

A user is able to deposit YSL-BUSD LP tokens acquired from third-party platforms into the YSL-BUSD vault held on YSL.IO. Upon depositing these YSL-BUSD LP tokens, the user will be entitled to a share of the Liquidity Mining Rewards.
In the event a user decides to make a withdrawal from the vault, a 10% sYSL Entrance Fee is collected and the remaining YSL-BUSD LP tokens will be sent to the ApeSwap Finance locked liquidity contract (vesting factory) for a predetermined period of 1000 years. Following the creation of locked liquidity, the protocol will mint an equivalent value of sYSL tokens (value equivalent to the YSL-BUSD LP tokens sent to the vesting factory), with the minted sYSL tokens subsequently sent to the user's wallet.
    Please note: every new sYSL token that is minted after the discovery will be subject to a vesting period of 180 days, whereby the purchased amount will be unlocked on each block over a period of 180 days.
As a result, the protocol has created locked liquidity equivalent to 100% of the value provided to the user!

13. Withdrawals from the YSL-BUSD vault (Balance transfer deposit)

When a user performs a balance transfer into the YSL-BUSD vault, the transferred LP tokens are instantly exchanged for BUSD. 25% of the BUSD is then used to form an equivalent of 50% locked liquidity, by the protocol minting an equivalent value of YSL tokens.
The remaining 50% of the BUSD will be deposited alongside an equivalent value of YSL tokens (25% minted by the protocol, 25% purchased) into the YSL-BUSD liquidity pool held on ApeSwap Finance. Following this, the protocol will deposit the LP tokens received from ApeSwap Finance (equivalent to 100% of the balance transferred) into the users YSL-BUSD vault held on YSL.IO.
In the event a user decides to make a withdrawal from the vault, a 10% sYSL Entrance Fee is collected and the remaining YSL-BUSD LP tokens will be sent to the ApeSwap Finance locked liquidity contract (vesting factory) for a predetermined period of 1000 years. Following the creation of locked liquidity, the protocol will mint an equivalent value of sYSL tokens (value equivalent to the YSL-BUSD LP tokens sent to the vesting factory), with the minted sYSL tokens subsequently sent to the user's wallet.
    Please note: every new sYSL token that is minted after the discovery will be subject to a vesting period of 180 days, whereby the purchased amount will be unlocked on each block over a period of 180 days.
As a result, the protocol has created locked liquidity equivalent to 100% of the value provided to the user!

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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Learn more about YSL.IO Tokenomics ​

Last modified 5h ago