How Does the Price Path of a Trade on an AMM Curve Relate to the Average Execution Price?
The AMM curve (e.g. x times y equals k) defines the instantaneous price at every point. As a trader executes a swap, they move along this curve, and the instantaneous price changes continuously against them.
The average execution price is the total amount of the output token received divided by the total amount of the input token provided. This average price is always less favorable than the initial instantaneous price due to slippage.