Let's use this transaction as an example.
Here 1 BUSD was transferred to Zombie / BUSD LP in exchange for
172054109197 Zombie tokens. (
3511308350 (2%) Zombie tokens were burned as part of the transaction.)
Here is the Swap event:
amount0In: 0 amount1In: 1000000000000000000 amount0Out: 175565417547 amount1Out: 0
Prior to the Swap, the reserve values were:
reserve0: 1203765031 reserve1: 6402195517789394391
after Swap, reserve values were updated to:
reserve0: 173257874228 reserve1: 44614233592769925
Everywhere that I've read, it is stated that constant product formula (
x*y=k) requires that the
k remains constant. However, this isn't the case here.
Am I misunderstanding the function of the formula or is something else going on here?