👉 The valuation fluid, also known as the "market-making" mechanism, is a dynamic pricing tool used in decentralized exchanges (DEXs) to determine the value of tokens in real-time. It operates by adjusting the supply and demand for a particular token, influencing its price based on market conditions. When demand for a token increases, the valuation fluid causes its supply to decrease, driving up its price. Conversely, if demand drops, the supply increases, lowering the price. This mechanism helps maintain liquidity and ensures fair pricing by automatically balancing supply and demand, making it a key component for efficient trading in decentralized markets.
