The wax won't hurt the string at all. Forget the paper tuning. That is only a starting point. Going form tab to release with a D loop changes the 'archer's paradox'. Now, instead of the arrow flexing left to right the loop in effect is eliminating the flex or substantially minimizing it. You bow I would suspect is out of tune. I bet if you put an arrow on the string and line the string up with the center of the limbs and look at the arrow tip I bet it is pointing left. Move the rest until the tip is in line with the string and c/L of the limbs. Then line the sights up with the arrow tip.
And download the Easton's Bow Tuning Guide for step by step tuning.