Most Deflationary Token seen — xYSL


“Purpose-Built Hyper-Deflationary token designed to skyrocket”

How many times have you heard this? For those that lived the last couple of years of meme tokens pioneering the Cryptoverse, probably thousands. Even Yearn Finance (YFI), dropped a Dog meme token (WOOFY) that helped its main token to new all-time highs, until users fully understood the utility and the token crashed in price. We mention YFI, as it had real explosive growth to a high of over $90,000.

For the YSL team, xYSL is not directional play of 1:1M, like WOOFY. It is an important part of its ecosystem. As designed, the ecosystem will help to drive the deflationary mechanics and speed them up without the need for buy/sell action like many other systems.

V1 xYSL Token Functionality

Buy / Sell / Transfer

The big difference is that with V1 platform being non-operational, the liquidity creation process is not being created anymore (as depicted in the graphic). So the team is getting the full 7.5% in fees that will be used to expand the team runway or in the future these tokens could be used to generate new liquidity pools on other chains.

Buy/Sell/Transfer of xYSL. More Info:

V2 xYSL Token Functionality

V2 xYSL Token Deflationary Mechanics

HydraVault & Price Stability Model

There are four unique techniques being used to add to the deflationary mechanics, build liquidity and maintain price stability.

Understanding xYSL Tokenomics

xYSL tokenomics is very important to understand as you will see below, especially its available supply. When xYSL was launched in the fall of 2021, it burned 20.3% of its supply at launch.

However, since its launch it has also currently burned even more of its supply. Additionally, since then another 8.6199% has been burnt or approximately 6,895 encompassing the top two wallets of 521 holders shown. So the current circulating is 56,860 as of 30 Mar 23. However, not all of these tokens are unlocked.

The unlock schedule is over a 1500-day lock period that vests linearly every day that started on 12 Oct 21. For those humans out there, that means the last day of unlocking is 20 Nov 25.

So currently we are 35.6% of the way through the unlock schedule as of 30 Mar 23. In reality, that means that only about 20,242 xYSL tokens are actually unlocked at the present time (30 Mar 23), the rest are scattered throughout the 518 holders wallets (taking away the 2 burn addresses and LP), and 1/3 of them are in Pancakeswap's LP.

So in reality, xYSL is already restricted as only 1/4 of it is available Max supply for buy/sell/transfer or migration to V2. Only xYSL V1 tokens are eligible for V2 migration. As they get purchased and burned in V1, the burned xYSL V1 tokens will no longer be available for migration to V2. As the V2 machine starts to work, it will also start to buy back and burn tokens, to increase the perpetual ratio and LP.

Note: Imagine when V2 is launched, people start migrating tokens from V1 to V2 that are unlocked, how many unlocked xYSL will be left?

Looking back on V1 when it was fully working, xYSL burnt in 45-days was about 7% of its supply as highlighted by the below announcement.

The next question then becomes what happens to the price once V2 starts? Well, the YSL team is starting the LP such that the xYSL token price will be at $120, the current value is much less than this. As highlighted above, arbitrage opportunities will continue to exist between V1 and V2 xYSL tokens.

But the real use-case the community has just witnessed with the testnet launch gives us a glimpse of how this machine will start to work on mainnet. Some truly crazy results in the example below.

Note: Due to low supply, expect LP liquidity to be low initially as the YSL contracts kick-in to support the organic protocol-owned liquidity generation by drawing in yield farmers.

Note: Price Stability Model will control the ability of folks to sell V2 unlocked tokens that have been migrated.

Example: Within 5-days, testnet users have pushed the price of xYSL from a starting price of $120 to over $3,660 with $30K in volume. Even with over $70K in liquidity made.


When the YSL team set-out to create a hyper-deflationary token that could skyrocket. The testnet certainly is showing that xYSL has some legs with a clean 30X as of this writing. It'll be intriguing to observe how things evolve when more features are added to the testnet, and later when it's available on the mainnet with all the features. How high do you think it can go, and how fast will xYSL circulating supply diminish?

So for those interested, consider using my referral link for 1% of life-time savings on the actions within the YSL platform.

Referral Link:

  • But why use someone’s referral link? You need it to receive a 1% instant rebate on all transactions, deposits, and trades involving YSL tokens during your lifetime on YSL.IO. That is going to add up overtime!
  • In addition, the Cyber Strategy Institute can explore other aspects of YSL and upcoming projects, while providing essential products to assist in securing your financial freedom.
  • Or you can head directly to YSL and start playing around. The downside is that if you end up using the platform, you will no longer get to use the 1% discount, that is instantly paid back to you for using the link. Since, once your wallet interacts with the platform you are categorized.
  • Either you came through a referral link or not. If not, that 1% instead of going to the person whose referral link you used, then goes to the YSL team. The choice is yours.

Further Resources about Cyber Strategy Institute and YSL.IO:

If interested in other analysis, checkout my other Medium articles and for more of a daily understanding of the Cryptoverse follow my Twitter account.

Cyber Strategy Institute









Nothing in this article is to be construed as investment advice. Neither the author nor the publication takes any responsibility or liability for any investments, profits or losses you may incur as a result of this information. The article may contain affiliate links.



Cyber Strategy Institute

Bringing Clarity to Cyber Strategy! Future Security is through Blockchain & Crypto...