How Does a Constant Product Market Maker (CPMM) Formula Influence Slippage for Large Trades?

The CPMM formula, $x y=k$, maintains a constant product between the reserves of two tokens ($x$ and $y$) in a liquidity pool. When a large trade occurs, it significantly alters the ratio of $x$ to $y$ to maintain $k$.

This imbalance forces the price to move aggressively along the curve, resulting in high slippage ▴ the difference between the expected price and the executed price. For a DAO making large treasury swaps, this price impact is a major operational cost.