# Auto-Liquidity Engine (ALE)

Market Liquidity is of utmost importance and plays a vital role in allowing the buying and selling of $OMD tokens on PancakeSwap. In simple terms, think of Liquidity as a big pool of money that is split 50/50 between OMD/BNB tokens. There is an exchange ratio that is determined by the amount of OMD you can get with BNB, for example: 1 BNB = 10 OMD. When somebody buys or sells $OMD, the price per $OMD changes and so does the ratio above.

Liquidity allows exchanging OMD/BNB at any time. However, the less money / liquidity there is in the pool, the lower the price you get. $OMD Auto-Liquidity Engine (ALE) adds more liquidity to that pool and therefore solves that issue.

Here is how the 1MDAO Auto Liquidity Engine works: Every 24 hours our 1MDAO Auto-Liquidity Engine will provide liquidity for the market.

On each buy or sell order there is a 4% fee that will be stacked to use for the liquidity. 2% will go to our liquidity contract and the other 2% will remain in the $OMD contract. In every selling transaction, 4% of the OMD will be swapped into BNB. Every 24 hours, all BNB and OMD tokens (8% of total fees) are added to the liquidity at once.

Our swap process replenishes ALE fund in each transaction and makes it unlikely to have a price dump as in case of adding the liquidity with other tokens

The 1MDAO Auto-Liquidity Engine will add liquidity every 24 hours, which will allow $OMD token holders to easily sell their tokens at any time with little to no market slippage. It will also benefit in maintaining protocol stability to make sure the APY is upheld for the entire life of $OMD. \
\
**Liquifier contract:** 0xF2380B4dEC3007B8B3d4154Bcb54c8b8EEC5a634\
\
\\
