📊The Bonding Curve

To sum up previous calculations, let's visualize$K$as the price moves on different scenarios:

When plotted, the constant product function is a quadratic hyperbola. The axes re- present the LP reserves: every trade starts at the point on the curve that corresponds to the current ratio of reserves. To calculate the output amount we need to find a new point on the curve, which has the $x$ coordinate of $x + \Delta x$ (and viceversa with $y$ and $\Delta y$)