> For the complete documentation index, see [llms.txt](https://absorber.gitbook.io/absorber/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://absorber.gitbook.io/absorber/faq/what-is-absorber.md).
# What is Absorbers Core?
You probably want to know how it all works then. There are three main pieces to this puzzle. The (re)allocation function of the contract. Why “re” allocation?
When you buy, sell, and hold *$ABS*, several things happen. Let’s break this down.
* A sell=3% tax, a buy=1% tax and a transfer=1% and the entire portion of this is re-allocated to every holder (“the yield”). (This will be possible to change later according to the community’s will. It’s like an airdrop, but it’s not because it costs NO GAS for you to collect — quite literally, it just appears as an increase on your balance. That means by holding $ABS, you’re able to passively collect your yield.
* On top of the previous point, each buy/sell/transfer goes through an “automatic liquidity generation” event, an absorption of 1% (changeable later according to the community’s will). This makes passive yield farming sustainable, creates a price floor, makes the ABS Protocol deflationary.
If you’re curious, here’s a simple explanation of the last point: the Absorber harvests the Bep20 and $ABS, converts them to a liquidity pool token, and permanently locks it into itself. Once in the contract, the LP token can never be moved, making the absorbed liquidity a *permanently locked feature of the contract*. This entire process ends on a *sell transaction* with the tokens being harvested on every *buy* and any *transfer transaction*.
*W*hile many think selling off a cryptocurrency is a terrible sin, we have some bright news for you: when the smart contract transacts, it, too, is subject to the first absorption mechanic of 3% for SELLS and 1% for BUYS (as of this writing). And when you sell the token yourself, you’ll notice that even your own sell transactions are not immune from rewards!
Should the community feel that this is awesome, we’ve gone ahead to the next level with “damn awesome” — an offset to make it “double deflationary.”
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