Market Liquidity is of utmost importance and plays a vital role in allowing the buy & sell of $VERY tokens on PancakeSwap.
In layman's terms, think of Liquidity as a big pool of money that is split 50/50 between $VERY tokens VS $BNB tokens. There is a conversion ratio that is set to the amount of $VERY you can get with BNB, for example: 1 BNB = 25 VERY.
When somebody buys VERY, the price per VERY 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 VERY/BNB at anytime, however the less money/liquidity there is in the pool, the worse price you get so what our Very Auto-Liquidity Engine (VALE) does, is add more liquidity to that pool by itself and therefore solving that issue.
Here is how the Very Auto-Liquidity Engine (VALE) works:
Every 48 hours our Very Auto-Liquidity Engine (VALE) 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 VERY stored in the wallet, and will automatically buy BNB at the current market price.
The remaining 50% of VERY in the Auto-LP wallet will be used for the VIF side of liquidity, therefore giving equal an 50/50 weighting of VERY/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 VALE will do this every 48 hours by adding more and more liquidity to the pool which will allow $VERY token holders to easily sell their tokens at anytime 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 VIF.