What Is the Difference between a Constant Product and a Stable Swap AMM?

The Constant Product Market Maker (CPMM), like Uniswap V2, maintains a constant product (x y=k) for two assets, which results in significant slippage for large trades. The Stable Swap AMM, like Curve, is designed for assets that should trade near parity (e.g. stablecoins).

It uses a different bonding curve to offer much lower slippage and higher capital efficiency for stable asset pairs.