Constant Product Pools

(v1.0)

Constant Product (CP) pools were the first liquidity pool type to debut and utilize the now-classic formula x * y = k, where x and y are the assets in a given pool and k is the constant. This means these pools must enforce a 50/50 equal weighting between the two assets in the pool. When providing liquidity, LPs will be forced to add equal amount of both assets so that k remains constant, always.