How are token prices determined?#
CenturionDEX prices come from the state of individual AMM pools, not from one administrator or a traditional order book. A pool's current reserves or active v3 liquidity determine its marginal price, while trades and arbitrage move that price over time.
Prices in v2#
A v2 pool maintains x · y = k. The ratio between its two reserves gives the marginal price before fees and trade impact.
Suppose a simplified pool holds 1,000 CTN and 100,000 token units. Its starting ratio is about 100 tokens per CTN. When someone swaps CTN for the token, the CTN reserve increases and the token reserve decreases. The pool therefore quotes fewer tokens for each additional CTN as the swap proceeds.
Every v2 swap also includes the flat 0.30% pool fee. The displayed quote for a specific amount reflects the curve and fee rather than merely multiplying the amount by the starting ratio.
Prices in v3#
A v3 pool represents price through ticks and uses concentrated liquidity. Only positions whose ranges include the current price are active.
A swap moves through active liquidity and may cross one or more ticks. The same token pair can have separate pools at 0.01%, 0.05%, 0.30%, and 1.00%, each with its own price and liquidity distribution. A route may prefer a higher fee tier when its deeper liquidity produces a better final result.
How markets stay aligned#
If a CenturionDEX pool price differs from other active markets, arbitrage traders may buy in the cheaper market and sell in the more expensive one. Their trades change pool reserves or ticks and tend to narrow the difference.
Alignment is not guaranteed. Thin liquidity, token restrictions, network delays, fragmented pools, or limited access to another market can allow prices to diverge.
There is no single universal token price#
A displayed token price may come from:
- One specific v2 or v3 pool.
- A liquidity-weighted combination of several pools.
- The most recent trade rather than an executable quote.
- An external data provider or oracle.
These sources answer different questions. A chart's last price does not guarantee what you will receive for your amount. Always use the live quote and minimum received shown for the exact swap.
Common issues#
- Two interfaces show different prices: they may use different pools, update times, or quote directions.
- A small trade moves price sharply: active liquidity is shallow.
- The price looks impossible: verify token contracts and whether the pair is inverted.
- A chart is stable but the quote is poor: historical trades do not show current depth for your size.