x*y=k), except that as the name suggests, the liquidity in the AMM is virtual. This means that assets are not exchanged, nor are two sides of an asset pair held in custody by the vAMM. The liquidity is set at the creation of the market and all trades happen in the vAMM. In practice, the state of each market, i.e. the vAMM, is stored in the data of a Solana account.