Decentralized Exchanges (DEXes) allow users to trade in a fully noncustodial manner. Traders can directly swap their digital currencies using a smart contract, a program running on the blockchain, rather than trusting a central counterparty with their funds. In the early stages, the low throughput of blockchains required another trading model than the traditional order book approach, which gave rise to Automated Market Makers (AMMs). An AMM is a smart contract that determines the price for which traders can swap their digital currency against another digital currency. For the trade to happen, liquidity providers lock digital currencies into a smart contract, the liquidity pool. The AMM deposits the trader's digital currency into the liquidity pool and pays the trader with the other digital currency from the liquidity pool according to the price provided by the AMM. This alters the amounts owned by liquidity providers. In turn, liquidity providers earn trading fees, cf. Mohan (Citation2022). In a Constant Function Market, the AMM determines the price via a so-called trading function – a function of the liquidity pool's reserves – so that the value of the trading function given the post-trade reserves equals its value given the pre-trade reserves.