If 'K' Is Constant, How Can Liquidity Providers Withdraw or Deposit Assets? ⎊ Path

If ‘K’ Is Constant, How Can Liquidity Providers Withdraw or Deposit Assets?

The 'k' in the formula x y = k is only constant for trades that occur within the pool. When a liquidity provider deposits or withdraws assets, they are essentially changing the total pool size, which results in a new, larger or smaller 'k' value.

LPs receive or return 'Liquidity Pool Tokens' (LPTs) which represent their proportional share of the pool's total reserves and fees, regardless of the change in 'k'.

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