Chik

It glows on its own while deployed. That sounds minor until you are fighting down an unlit cavern and the yoyo is the only thing lighting the tunnel in front of you, which also makes it easy to track when the screen is full of projectiles.

Craft it rather than fish or farm for it, and run it with a yoyo bag as soon as you own one. The counterweight and the extra string do more for your damage at that point than most accessory slots will.

Chik is not a Terraria invention. It is a real yoyo model made by One Drop, and the small mark printed at the end of the tooltip is that company's logo. Several of their designs made it into the game; this is the only one you build yourself instead of finding.