Orca Auto-Liquidity Engine (OALE)
Liquidity is a critical aspect of our Protocol. We seek to maximize the amount of available $OP tokens on PancakeSwap.
Simplified, Liquidity is a pool of money that is split 50/50 between $OP tokens and $BNB tokens. There is a conversion ratio that is set to the amount of $OP you can get with BNB, for example: 1 BNB = 24.66 $OP.
When somebody buys OP, the price per OP 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 users to buy & sell their OP/BNB at any time, with the higher the amount, the better price you get on buys and sells. Orca Auto-Liquidity Engine (OALE) works by adding more liquidity to the pool and providing the best possible pricing to our holders.
Orca Auto-Liquidity Engine (OALE) Overview:
Every 48 hours, the Orca Auto-Liquidity Engine (OALE) will inject automated liquidity into the market. On each buy or sell order there is a tax fee that automatically gets stored into an Auto-LP wallet and built into our protocol's smart contract. This mechanism automatically converts 50% of the amount of $OP stored in the wallet into BNB at the current market rate.
The remaining 50% of $OP in the Auto-LP wallet will be used for the $OP side of liquidity, establishing an equal 50/50 weighting of OP/BNB. This additional half will be used to strengthen the $OP liquidity.The OALE will do this every 48 hours, adding the accrued fees, allowing $OP token holders to easily sell their tokens at any time with little to no market slippage. It will also aid in supporting protocol stability to make sure the APY is upheld for the entire life of the Orca Protocol.