Decoded Intelligence Signal
Constant Product Formula
intermediate
market_structure
Verified: May 26, 2026Lexicon Core Definition
The mathematical rule (x × y = k) governing most AMM pricing — where x and y are the quantities of two tokens in a pool and k is a constant. Any trade must keep k unchanged, so buying token x reduces its quantity and increases y's quantity, raising the price of x.
Analysis Breakdown
The mathematical rule (x × y = k) governing most AMM pricing — where x and y are the quantities of two tokens in a pool and k is a constant. Any trade must keep k unchanged, so buying token x reduces its quantity and increases y's quantity, raising the price of x. Full explanation coming soon when Journey 12 content is ingested.