# Petoverse Auto-Liquidity Engine (PALE)

**Market Liquidity is of utmost importance and plays a vital role in allowing the buy & sell of $PETO tokens on PancakeSwap.**

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

When somebody buys $PETO, the price per $PETO 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 $PETO/BNB at any time, however, the less money/liquidity there is in the pool, the worse price you get. So what our Petoverse Auto-Liquidity Engine (PALE) does, is add more liquidity to that pool by itself and therefore solving that issue.

**Here is how the Petoverse Auto-Liquidity Engine (PALE) Works:**

Every 48 hours our Petoverse Auto-Liquidity Engine (PALE) will automatically inject liquidity into the market. On each buy or sell order there is a **3% tax fee** that automatically gets stored into an Auto-LP wallet which is a dead wallet (to provide assurance that the DEV has no access to the wallet). Built into our protocol's smart contract is a mechanism that uses 50% of the amount of $PETO stored in the wallet at that time, and will **automatically** buy BNB at the current market price.

The remaining 50% of $PETO in the Auto-LP wallet will be used for the $PETO side of liquidity, therefore giving an equal 50/50 weighting of $PETO/BNB which will then be **automatically** added as new, additional liquidity into the market pair and raising the amount of liquidity in the pool.

The PALE will do this **every 48 hours** by adding more and more liquidity to the pool which will allow $PETO token holders to easily sell their tokens at any time with little to no market slippage. It will also aid in **maintaining protocol stability** to make sure the APY is upheld for the entire life of Petoverse.

![](/files/vxsUospzvUBHDsWONq5a)


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