What I use is strapping. Cut it and bend to fit. Then do a test fit. Strapping is made in several thicknesses. You want a good tight fit. Then I "glue" it in place with 3M weatherstrip adhesive. Assembly can be a bit fiddly. You have to make sure the pieces don't move when assembling. With a tight fit I have had to use the axle and spacers to press the hub into the carrier when putting the wheel on the bike. I've had good success doing this. On my original XS2 I've got close to 10K smiles on a set of these dampeners. They are now starting to get loose but there is no clanging like when there is nothing in there.
I tried black RTV, that lasted less than 1000 smiles. Yamahabond less than 500. I also tried to use intertube rubber. It was too thick, all the old tubes I have are heavy duty.
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