Large tokens price percentage change during the period
For example, consider a Token A/Token B liquidity pool of 50/50 split:
at T0, Token A: $0.1 Token B: $1
With principal $100, we have 500 Token A and 50 Token B.
k = 500 * 50 = 25,000
at T1, Token A: $0.2 Token B: $1.1
By constant k formula, we will now have 370.81 and 67.42 Token B. (370.81 * 67.42 = 25,000)
Total equity value in liquidity pool = $148.32
You can see, increase in both tokensโ price by $0.1 already results in 48.3% increase of equity value.