How to Create an Auto-Liquidity Token in 2025
Daniel T. (MDB Dev)
Published on February 11, 2025
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Introduction to Auto-Liquidity
Auto-liquidity tokens represent a significant advancement in DeFi token design, automatically building and managing liquidity pools to ensure stable trading and long-term sustainability.
What is Auto-Liquidity?
Auto-liquidity is a mechanism where a portion of each transaction is automatically converted to liquidity and added to the token's liquidity pool. This creates a self-sustaining ecosystem that continuously strengthens the token's trading capacity.
Key Components:
- Automatic fee collection from transactions
- Token-to-BNB/ETH swap mechanism
- Automated liquidity pair creation
- Smart contract-managed LP token locking
Benefits of Auto-Liquidity
- Price Stability: Deeper liquidity reduces price impact
- Sustainable Growth: Continuous liquidity addition
- Reduced Risk: Locked liquidity prevents rug pulls
- Lower Slippage: Better trading experience
- Community Trust: Transparent, automated process
Creation Process with MDB App
Creating an auto-liquidity token is straightforward with MDB App:
Parameter Configuration
Essential Parameters:
- Liquidity Fee: Typically 2-4% of each transaction
This fee is collected and used to generate new liquidity
- Swap Threshold: Amount of tokens to accumulate before converting to liquidity
Recommended: 0.01-0.05% of total supply
- Max Transaction: Limit to prevent large sells impacting price
Typically 0.1-1% of total supply
- LP Lock Duration: Time period for locking generated LP tokens
Recommended: Minimum 6 months to 1 year
Testing and Launch
Before launching your auto-liquidity token:
- Test liquidity generation with small transactions
- Verify LP token locking mechanism
- Monitor swap threshold triggers
- Test maximum transaction limits
- Verify fee distribution accuracy
