> For the complete documentation index, see [llms.txt](https://coinada.gitbook.io/coinada/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://coinada.gitbook.io/coinada/features/automatic-lp.md).

# Automatic LP

Periodically, the **contract adds liquidity** to the PancakeSwap ($CoinADA / BNB pair). It does so by putting 3**%** of the funds received by the taxes.

It then starts a swap when a specified number of tokens have been stored in the contract **(0.0001% of the total supply)**.

Half of the tokens set aside for liquidity are exchanged for BNB, while the other half is used to offer liquidity. The obtained LP tokens are then locked indefinitely.

This is beneficial to all $CoinADA token holders because increased liquidity raises the price floor and makes the price more resistant to price fluctuations.[<br>](https://docs.maka.finance/features/earn-bnb/reserve-pool-mechanism)