diff --git a/crates/dojo-defi/src/constant_product_market.cairo b/crates/dojo-defi/src/constant_product_market.cairo
new file mode 100644
index 0000000000..98d784c920
--- /dev/null
+++ b/crates/dojo-defi/src/constant_product_market.cairo
@@ -0,0 +1,2 @@
+mod components;
+mod systems;
diff --git a/crates/dojo-defi/src/constant_product_market/components.cairo b/crates/dojo-defi/src/constant_product_market/components.cairo
new file mode 100644
index 0000000000..2fb23a0caf
--- /dev/null
+++ b/crates/dojo-defi/src/constant_product_market/components.cairo
@@ -0,0 +1,79 @@
+use traits::Into;
+use traits::TryInto;
+use option::OptionTrait;
+
+const SCALING_FACTOR: u128 = 10000_u128;
+
+#[derive(Component)]
+struct Cash {
+    amount: u128, 
+}
+
+#[derive(Component)]
+struct Item {
+    quantity: usize,
+}
+
+#[derive(Component)]
+struct Market {
+    cash_amount: u128,
+    item_quantity: usize,
+}
+
+trait MarketTrait {
+    fn buy(self: @Market, quantity: usize) -> u128;
+    fn sell(self: @Market, quantity: usize) -> u128;
+}
+
+impl MarketImpl of MarketTrait {
+    fn buy(self: @Market, quantity: usize) -> u128 {
+        assert(quantity < *self.item_quantity, 'not enough liquidity');
+        let (quantity, available, cash) = normalize(quantity, self);
+        let k = cash * available;
+        let cost = (k / (available - quantity)) - cash;
+        cost
+    }
+
+    fn sell(self: @Market, quantity: usize) -> u128 {
+        let (quantity, available, cash) = normalize(quantity, self);
+        let k = cash * available;
+        let payout = cash - (k / (available + quantity));
+        payout
+    }
+}
+
+fn normalize(quantity: usize, market: @Market) -> (u128, u128, u128) {
+    let quantity: u128 = quantity.into().try_into().unwrap() * SCALING_FACTOR;
+    let available: u128 = (*market.item_quantity).into().try_into().unwrap() * SCALING_FACTOR;
+    (quantity, available, *market.cash_amount)
+}
+
+
+#[test]
+#[should_panic(expected: ('not enough liquidity', ))]
+fn test_not_enough_quantity() {
+    let market = Market {
+        cash_amount: SCALING_FACTOR * 1_u128, item_quantity: 1_usize
+    }; // pool 1:1
+    let cost = market.buy(10_usize);
+}
+
+#[test]
+#[available_gas(100000)]
+fn test_market_buy() {
+    let market = Market {
+        cash_amount: SCALING_FACTOR * 1_u128, item_quantity: 10_usize
+    }; // pool 1:10
+    let cost = market.buy(5_usize);
+    assert(cost == SCALING_FACTOR * 1_u128, 'wrong cost');
+}
+
+#[test]
+#[available_gas(100000)]
+fn test_market_sell() {
+    let market = Market {
+        cash_amount: SCALING_FACTOR * 1_u128, item_quantity: 10_usize
+    }; // pool 1:10
+    let payout = market.sell(5_usize);
+    assert(payout == 3334_u128, 'wrong payout');
+}
diff --git a/crates/dojo-defi/src/constant_product_market/systems.cairo b/crates/dojo-defi/src/constant_product_market/systems.cairo
new file mode 100644
index 0000000000..92fa481a17
--- /dev/null
+++ b/crates/dojo-defi/src/constant_product_market/systems.cairo
@@ -0,0 +1,87 @@
+#[system]
+mod Buy {
+    use traits::Into;
+    use array::ArrayTrait;
+    use dojo_defi::constant_product_market::components::Item;
+    use dojo_defi::constant_product_market::components::Cash;
+    use dojo_defi::constant_product_market::components::Market;
+    use dojo_defi::constant_product_market::components::MarketTrait;
+
+    fn execute(game_id: felt252, item_id: felt252, quantity: usize) {
+        let player: felt252 = starknet::get_caller_address().into();
+
+        let cash_sk: Query = (game_id, (player)).into();
+        let player_cash = commands::<Cash>::entity(cash_sk);
+
+        let market_sk: Query = (game_id, (item_id)).into();
+        let market = commands::<Market>::entity(market_sk);
+
+        let cost = market.buy(quantity);
+        assert(cost < player_cash.amount, 'not enough cash');
+
+        // update market
+        commands::set_entity(
+            market_sk,
+            (Market {
+                cash_amount: market.cash_amount + cost,
+                item_quantity: market.item_quantity - quantity,
+            })
+        );
+
+        // update player cash
+        commands::set_entity(cash_sk, (Cash { amount: player_cash.amount - cost }));
+
+        // update player item
+        let item_sk: Query = (game_id, (player, item_id)).into();
+        let maybe_item = commands::<Item>::try_entity(item_sk);
+        let player_quantity = match maybe_item {
+            Option::Some(item) => item.quantity + quantity,
+            Option::None(_) => quantity,
+        };
+        commands::set_entity(item_sk, (Item { quantity: player_quantity }));
+    }
+}
+
+#[system]
+mod Sell {
+    use traits::Into;
+    use array::ArrayTrait;
+    use dojo_defi::constant_product_market::components::Item;
+    use dojo_defi::constant_product_market::components::Cash;
+    use dojo_defi::constant_product_market::components::Market;
+    use dojo_defi::constant_product_market::components::MarketTrait;
+
+    fn execute(game_id: felt252, item_id: felt252, quantity: usize) {
+        let player: felt252 = starknet::get_caller_address().into();
+
+        let item_sk: Query = (game_id, (player, item_id)).into();
+        let maybe_item = commands::<Item>::try_entity(item_sk);
+        let player_quantity = match maybe_item {
+            Option::Some(item) => item.quantity,
+            Option::None(_) => 0_u32,
+        };
+        assert(player_quantity >= quantity, 'not enough items');
+
+        let cash_sk: Query = (game_id, (player)).into();
+        let player_cash = commands::<Cash>::entity(cash_sk);
+
+        let market_sk: Query = (game_id, (item_id)).into();
+        let market = commands::<Market>::entity(market_sk);
+        let payout = market.sell(quantity);
+
+        // update market
+        commands::set_entity(
+            market_sk,
+            (Market {
+                cash_amount: market.cash_amount - payout,
+                item_quantity: market.item_quantity + quantity
+            })
+        );
+
+        // update player cash
+        commands::set_entity(cash_sk, (Cash { amount: player_cash.amount + payout }));
+
+        // update player item
+        commands::set_entity(item_sk, (Item { quantity: player_quantity - quantity }));
+    }
+}
\ No newline at end of file
diff --git a/crates/dojo-defi/src/lib.cairo b/crates/dojo-defi/src/lib.cairo
index e69de29bb2..f9c2c219fb 100644
--- a/crates/dojo-defi/src/lib.cairo
+++ b/crates/dojo-defi/src/lib.cairo
@@ -0,0 +1 @@
+mod constant_product_market;