How Do Single-Asset Staking Pools Differ from Single-Sided Liquidity Pools?
Single-asset staking pools typically involve locking a token to secure a network or governance, earning rewards in the form of the staked token or another governance token. This carries no impermanent loss risk.
Single-sided liquidity pools, however, are a form of AMM provision where the deposited token may be swapped for the other token in the pair to balance the pool, exposing the user to the risk of impermanent loss.
Glossar
Staking Pools
Structure ⎊ Staking Pools are aggregated mechanisms where individual asset holders combine their stakes to meet the minimum requirement for participation in network validation, sharing the resulting rewards proportionally.
Impermanent Loss
LiquidityRisk ⎊ Impermanent Loss quantifies the temporary divergence in value between holding assets in a decentralized liquidity pool versus simply holding those same assets in a non-interest-bearing wallet, resulting from price movements between the deposited pair.