Draft Kings Salary Determination?

I am a complete noob to fantasy football and have just opened a draft kings
account. They have a formula for scoring fantasy points but I did not see a
formula for salary determination. How do you think they set it from week to
week?

They have a formula that is way too complicated for me.

From my understanding, each site has their own process for determining salaries. A number of sites use an algorithm that takes a number of elements into consideration. No one outside of the people that work on the salaries will be able to tell you each element, but you can be sure past performance is one of them. On top of the automated elements there is most certainly manual verification and quality checking. Some of the smaller sites create their salaries manually.

I think you'll be hard pressed to find exactly what goes into salary determination, but it's most definitely using past data to predict future performance. There is a human element and salary creation is not close to a perfect science. This leaves the door open for finding value in undervalued players with lower salaries. If you can create and/or use stronger projections than the DFS sites, you can find inherent value in players based off of soft salaries.

To add to what Sam said, most sites have an algo that also includes player ownership numbers from what I understand. If any one player is very highly owned from one week to the next (or one day in other sports), their salaries are generally raised based on that. Sometimes anticipated ownership and matchup play into it as well.