How do Turbos and Cetus DEXs calculate trading prices?

Question

Im curious about how decentralized exchanges (DEXs) like Turbos and Cetus calculate the prices for trading pairs. What mechanisms or algorithms do they use?

skywinder · Accepted Answer

For more detailed information on how Turbos and Cetus specifically implement these mechanisms, you can refer to their documentation. Turbos has its documentation available at Turbos Docs, and Cetus can be found at Cetus Docs. These resources should provide enough info and technical implementation details.

elfDani · Answer

While the specifics can vary, DEXs like Turbos and Cetus typically use automated market-making algorithms to determine the price of trading pairs. These algorithms often rely on smart contracts to automatically facilitate trades when liquidity providers offer to trade currency pairs at predefined rates. The price is usually determined by the ratio of the reserves of each token in a liquidity pool. When a trade is executed, the proportions of tokens in the pool change, which in turn affects the price.

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How do Turbos and Cetus DEXs calculate trading prices?

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