How Does a Protocol Typically Compensate for the Lack of a Second Asset in a Single-Sided Staking Mechanism?

Protocols often use insurance funds, token-based derivatives, or yield-bearing collateral to compensate for the missing asset. For instance, a protocol might issue a token that represents the insured value or use a treasury to cover potential losses.

Alternatively, the single asset might be paired with a highly correlated asset or a synthetic derivative to mimic a two-sided pool without requiring the user to hold both.