- x and y are the quantities of the two tokens in the pool (e.g. MET and USDC).
- k is a constant. As trades occur, the product of the amounts of the two tokens must remain the same.
- If someone buys MET with USDC from your pool, the amount of MET in your pool decreases, and the amount of USDC increases. The DAMM v1 Pool adjusts the price based on the new token balances in the pool.