I race 2 stroke dirt bikes. the 2 stroke oil IS MADE TO BURN!!!!
In a 2 stroke motor, the gas/air/oil mix enters in the ports when the piston is on it's upstroke. This mix is pulled in under the piston and lubes the crank and wrist pin. On the downstroke, the mix is force through passages around the cylinder and into the combustion chamber. There is nothing to lube up there, the lube is only needed at the crank end of things. Now with the mix in the combustion chamber, the stuff is burned. Good stuff has low ash and burns pretty thoughly. This results in little or no smoke and "spooge". (Spooge is the term used for wet goo that comes out the exhaust of a 2 stroke's muffler. )