> For the complete documentation index, see [llms.txt](https://compound-coin.gitbook.io/whitepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://compound-coin.gitbook.io/whitepaper/how-does-it-work/auto-liquidity-system.md).

# Auto Liquidity System

Automatic LP is another feature of $CProtocol. LP creates stability from the supplied LP by adding the tax to the overall liquidity of the token, thus increasing the token's overall LP and supporting the price floor of the token. This is different from the burn function of other reflection tokens which is only beneficial in the short term from the granted reduction of supply. 4% on buys & 5% on sell fees goes straight to Liquidity, ensuring increased collateral value.