Step 1: Let the center of the circle be at \( (h, k) \) and its radius be \( r \).
The circle touches the y-axis, so the distance from the center \( (h, k) \) to the y-axis must be equal to the radius \( r \).
The distance from the point \( (h, k) \) to the y-axis is simply \( |h| \), so we have: \[ |h| = r. \]
Step 2: Next, the circle touches the line \( x + y = 0 \), so the distance from the center \( (h, k) \) to this line must also be equal to the radius \( r \). The formula for the distance from a point \( (x_1, y_1) \) to the line \( Ax + By + C = 0 \) is given by:
\[ {Distance} = \frac{|Ax_1 + By_1 + C|}{\sqrt{A^2 + B^2}}. \]
For the line \( x + y = 0 \), we have \( A = 1 \), \( B = 1 \), and \( C = 0 \).
Thus, the distance from the center \( (h, k) \) to the line is:
\[ \frac{|h + k|}{\sqrt{1^2 + 1^2}} = \frac{|h + k|}{\sqrt{2}}. \]
Since this distance must equal the radius \( r \), we have: \[ \frac{|h + k|}{\sqrt{2}} = r. \]
Step 3: Now, equating the two expressions for the radius \( r \), we get: \[ |h| = \frac{|h + k|}{\sqrt{2}}. \]
Squaring both sides:
\[ h^2 = \frac{(h + k)^2}{2}. \]
Multiplying through by 2: \[ 2h^2 = (h + k)^2. \]
Expanding the right-hand side: \[ 2h^2 = h^2 + 2hk + k^2. \]
Simplifying:
\[ h^2 = 2hk + k^2. \] Rearranging: \[ h^2 - k^2 = 2hk. \]
Thus, the locus of the center of the circle is given by: \[ x^2 - y^2 = 2xy. \]