Originally Posted by JanMM
I understand that melting paraffin presents some degree of fire hazard. An MSDS shows the melting point to be 128 degrees and the flash point to be 385 degrees. Ever heard of anybody starting a fire in the process of lubing a chain?
There is that hazard which is why, as Sheldon noted, you should use a low heat crock pot or a double boiler to avoid direct heat. It is flammable but it does not have the same flammable fume danger you have with gasoline. Use low indirect heat.
The only benefit I knew of was that the wax was for a cleaner chain. Harder for it to pick up grit, less staining of your leg or clothes. The more oil you use the less benefit of the wax but the longer the lube would last. The more wax, the less grime in suspension but the wax flakes off relatively quickly.
Others may have more info on the technique. Sheldon probably has a write up on his site.