One thing to note is that this is distinctly the differentiator of AMMs (automated market makers), Uniswap for example. Here are the docs for V1 (V3 is differe

One thing to note is that this is distinctly the differentiator of AMMs (automated market makers), Uniswap for example. Here are the docs for V1 (V3 is different, but the core pieces remain) https://docs.uniswap.org/protocol/V1/introduction https://docs.uniswap.org/protocol/V1/introduction. V2 docs have fun diagrams if that is useful for you https://docs.uniswap.org/protocol/V2/concepts/protocol-overview/how-uniswap-works https://docs.uniswap.org/protocol/V2/concepts/protocol-overv... It's quite interesting, and essentially what happens is that a pairing pool is created, ETH <> Shtcoin for example. So now for that shtcoin to have "value" it needs to be liquid within the pool, ie can go into ETH. The cost of the coin is determined mathematically based on the ratio each side of the pool.