Does a Very Large Liquidity Pool (High K) Experience Less Price Impact from Trades?

Yes, a very large liquidity pool, meaning a high value for k (the product of reserves), experiences less price impact, or lower slippage, for a given trade size. This is because the reserves (x and y) are large, so the trade size represents a smaller percentage change in the reserve ratio.

Lower price impact means that the pool's price moves less drastically after a trade, which in turn reduces the opportunity for arbitrage and thus the rate at which impermanent loss accumulates.