In reply to Rigid Raider:
First I'll say that I'm not a chemist so I cant comment on formulations and types of wax/solvent. But I'll happily wax lyrical with my thoughts. Waxoyle is primarily formulated to be a passive corrosion protection not a lubricant so may struggle with the sliding and shearing movements in gears, which is why purpose formulated dry waxy lubes often claim something extra like PTFE to bolster the lubricating and self replenishing properties of the residual film. Decreased lubrication equals increased wear, increased power consumption from your legs etc as any fule kno. Waxolye diluted with paraffin could also have a much longer drying time, and application could be messy. It might be worth considering diluting with gunwash or thinners rather than paraffin, application would still be messy but it would dry quicker.
Waxoyle could also retain grit more readily than specially formulated waxes and this would be a problem, it always is in chain lubrication. Polymer and PTFE types seem better at not retaining solids. However chains are notoriously difficult to lubricate due to the ambient and environmental considerations. An optimal lubricant may provide sub optimal lubrication because of this. In short, an MTB chain is going to get sandy no matter what, and a lubricant and the rider will just have to live with that.
All that said it has to be worth a go, the mark ups on well marketed and packaged tiny bottles of lubricant are significant and looking for alternatives would be well worth experimenting with. Key principles of lubrication are that anything is better than nothing, and frequency of application can make choice of lubricant less critical. If you want somthing to spray on and leave for 6 months it had better be pretty good stuff, if you fancy reapplying every 90 seconds then rub a banana on your chain, it'll be fine. Realistically if you clean your gears and chain every use then a diluted waxoyle will probably perform more than adequately.
I'd welcome any comments or clarification, as chain lubrication is a dark art, and solvent/wax combo's aren't really my speciality.
Post edited at 17:44