thought contributor & graphic applicator ,, doing things online that i believe in w/ songcamp & seed club

K represents the aggregate liquidity in a way, since it's the amount of X and Y tokens multiplied together

Because X*Y has to be the same K before and after a trade, a CPMM can be thought of as a automated market that keeps liquidity the same before and after a trade

This dynamic emerges from having the invariant constraint of a trade be a product (X*Y=K), while the spot price is a ratio (X/Y=quote price)

CPMM = infinite liquidity, but price will change as the reserve balances of X and Y change

The spot price of an extremely small buy order of Y is the ratio of X/Y

The more liquidity (X*Y=K) you have, the larger buy order of Y you can make with an average "price" closer to X/Y 

Less liquidity = larger price impact / slippage