> For the complete documentation index, see [llms.txt](https://paragon-protocol.gitbook.io/paragon-protocol/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://paragon-protocol.gitbook.io/paragon-protocol/core-products/paragon-swap/auto-yield-on-buy-1-3.md).

# Auto-Yield on Buy (1–3%)

### How It Works

When you execute a swap:

* **97–99%** → sent directly to your wallet
* **1–3%** → automatically allocated to XPGN staking

This portion is:

* deposited into PID-0
* starts earning emissions
* tracked under your address

***

### Example

You swap into XPGN:

**Total received → 1,000 XPGN**

With Auto Allocation (2% enabled):

* **980 XPGN → wallet**
* **20 XPGN → staked automatically**

👉 You now:

* hold liquid tokens
* participate in staking at the same time

***

### Why It Exists

Most users:

* do not stake manually
* miss available rewards
* leave tokens idle

Auto Allocation removes friction by:

* activating staking immediately
* reducing manual steps
* increasing participation in the system

***

### What You Earn

Auto Allocation deposits into **XPGN (PID-0)**, which earns:

* emissions-based staking rewards

👉 Rewards:

* begin immediately
* vary based on emission rates and protocol conditions

***

### Control & Settings

Auto Allocation is:

* optional
* configurable per trade
* adjustable in the interface

***

#### Available Modes

* **OFF** → 100% liquid tokens
* **1%** → minimal allocation
* **2%** → balanced
* **3%** → higher allocation

Users can:

* toggle anytime
* adjust per swap
* unstake separately

***

### Non-Custodial

* funds remain in your control
* staking is executed via smart contracts
* positions are visible and verifiable on-chain

***

### Why It Matters

#### For Users

* immediate participation in staking
* no additional steps required
* exposure to ongoing emissions

***

#### For the Protocol

* increased staking participation
* improved token alignment
* stronger long-term incentives

***

#### For the Ecosystem

* more active governance participation
* sustained reward distribution
* healthier token dynamics

***

### ⚠️ Important Notes

* reduces immediate liquid tokens received
* staking rewards are variable (not fixed)
* unstaking depends on pool conditions and rules

***

### Summary

Auto Allocation integrates staking directly into the swap experience.

Each trade can act as:

* a token purchase
* a staking action

This allows users to participate in protocol rewards without additional steps.