# Auto-Liquidity System (ALS)

### <mark style="color:yellow;">Auto-Liquidity System (ALS)</mark>

<mark style="color:green;">**Market Liquidity is of utmost importance and plays a vital role in allowing the buy & sell of $MEDUSA tokens on PancakeSwap.**</mark>

In layman's terms, think of Liquidity as a big pool of money that is split 50/50 between $MEDUSA tokens VS $BNB tokens. There is a conversion ratio that is set to the amount of $MEDUSA you can get with BNB, for example: 1 BNB = 50 Medusa.

When somebody buys MEDUSA, the price per MEDUSA will go up and the ratio above will also change at the same time to account for this. The same goes in the opposite direction for sells.

Liquidity allows for anybody to buy & sell their MEDUSA at anytime, however the less money/liquidity there is in the pool, the worse price you get so what our ALS does, is add more liquidity to that pool by itself and therefore solving that issue.

<mark style="color:yellow;">**Here is how the Auto-Liquidity System (ALS) works:**</mark>

Every 48 hours our <mark style="color:yellow;">Auto-Liquidity System (ALS)</mark> will inject automatic liquidity into the market. On each buy or sell order there is a **4% tax fee** that automatically gets stored into an Auto-LP wallet and built into our protocol's smart contract is the mechanism which smartly takes the 50% of the amount of MEDUSA stored in the wallet, and will <mark style="color:green;">**automatically**</mark> buy BNB at the current market price.

The remaining 50% of MEDUSA in the Auto-LP wallet will be used for the MEDUSA side of liquidity, therefore giving equal an 50/50 weighting of MEDUSA/BNB which will then be <mark style="color:green;">**automatically**</mark> added as new, additional liquidity into the market pair and raising the amount of liquidity in the pool.

The ALS will do this <mark style="color:red;">**every 48 hours**</mark> by adding more and more liquidity to the pool which will allow $MEDUSA token holders to easily sell their tokens at anytime with little to no market slippage. It will also aid in <mark style="color:yellow;">**maintaining protocol stability**</mark> to make sure the APY is upheld for the entire life of Medusa.


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