# What is Automatic Liquidity LP?
**Automatic LP.**
**Automated Liquidity (LP): The Core of the RAO Protocol** \
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The **Auto-Liquidity** engine is the most vital component of the RAO infrastructure. A **2% tax** on every buy and a **2% tax** on every sell order are automatically funneled into the liquidity pool. This ensures a consistent increase in the **$RAO price floor** and guarantees deep market liquidity for the **RAO/BNB** pair on PancakeSwap V2.. \
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**Three Primary Wealth Generation Pathways:**
1. **Market Stability:** With liquidity automatically added to the RAO/BNB pair, users can trade seamlessly 24/7. This constant infusion ensures price stability and high execution reliability.
2. **Passive Yield (Hold & Earn):** Simply by holding $RAO, you benefit from a **4% reflection tax** on all network transactions, yielding an impressive **1,460.04% APY**.
3. **Real-World Asset Integration:** Engage in our farming and construction ventures to earn up to **+100% net annual profit**. These proceeds are strategically used to bolster the market value of RAO.
**The RFV (Risk-Free Value) Protocol:**\
The RFV is a dedicated liquidity support protocol with assets secured in a separate treasury. This fund acts as a strategic buffer, allowing the ecosystem to mitigate volatility and provide a safety net during market fluctuations. \
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In essence, while our Auto-Liquidity mechanism supports the token's value during sell-offs, the **RFV Fund** maintains absolute oversight to prevent market manipulation and ensure a healthy, upward-trending chart for all investors.
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