How Do Single-Sided Staking and Concentrated Liquidity Pools Attempt to Mitigate Impermanent Loss?

Single-sided staking eliminates IL by only requiring one asset, though it often involves complex derivatives or insurance mechanisms to manage risk. Concentrated liquidity pools mitigate IL by restricting the price range in which the capital is active.

By only providing liquidity within a small range, the capital is more efficiently used, but the LP faces 100% IL if the price moves outside the range, as their position converts entirely to the less valuable asset.