x*y=k
to maintain a curve along which trades can happen.x*y=k
.x
= secret_token_0, y
= secret_token_1, k
= constant. For each trade, a certain amount of secret tokens are removed from the pool in exchange for adding an amount of the other secret token. To maintain k, the balances held by the secret contract are adjusted during the execution of the trade, therefore changing the price.