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I would add a small amount of grease to the bushing (I usually do), but I wonder how much drag is really introduced by the pulleys. On some of my bikes, I have changed to sealed ball-bearing pulleys. It does seem to make the chain run smoother on the work-stand, but I don't really notice any huge difference in the "real world". The real gain is that I don't have to take them apart for cleaning as often.

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