> For the complete documentation index, see [llms.txt](https://docs.poolside.party/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.poolside.party/overview/amm/volatile-pools.md).

# Volatile Pools

Poolside V1 introduced a custom Constant Function Market Maker with an integrated inventory management system. Poolside V2 retains these Volatile Pools, allowing for unique asset pairs that would not otherwise exist on centralized exchanges. Poolside also extends the capabilities of CFMMs, popularized by Uniswap v2, by fully integrating rebase tokens. Natively rebasing tokens like Lido's stETH or Ampleforth's AMPL do not require a wrapper in our protocols.

Volatile Pools use the Constant Product Invariant `(y*x=k)`, where `x` and `y` are the pool’s reserves of the two assets. These pools are perfect for pairs like stETH/USDC or ones including memecoins.


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