> For the complete documentation index, see [llms.txt](https://brownfi.gitbook.io/brownfi-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://brownfi.gitbook.io/brownfi-docs/brownfi-v3/benchmark/univ2-is-constant-mix.md).

# UniV2 is Constant-Mix

#### Constant-mix is a proven portfolio strategy

Constant-mix is a proven portfolio strategy in traditional finance. It maintains a fixed allocation (e.g. 50% ETH / 50% USDC) by continuously selling the outperformer and buying the underperformer. This is countercyclical by design: it forces taking profit when an asset pumps and averaging in when it dips. Pure trending markets (where buy-and-hold wins by letting winners run) are rare. Most of the time markets oscillate, and in oscillating conditions, constant-mix systematically outperforms buy-and-hold by capturing each swing. The long-run thesis is straightforward: disciplined rebalancing compounds into better risk-adjusted returns than passive holding.

#### Uniswap V2 is constant-mix

UniV2's x·y = k bonding curve is mathematically a 50/50 constant-mix portfolio. Every trade automatically rebalances the pool's dollar-value split — no manual intervention needed. The rebalancing behaviour is identical; only the mechanism differs.


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