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What Are the Differences between Single-Sided and Dual-Sided Liquidity Provisioning in AMMs?

Dual-sided requires two tokens of equal value; single-sided requires only one, simplifying the process but potentially increasing risk.
Greeks.Live21.11.25

What Are the Differences between Single-Sided and Dual-Sided Liquidity Provisioning in AMMs?

In dual-sided provisioning, a liquidity provider (LP) deposits an equal value of two different tokens into a pool. This is the standard model for most AMMs.

In single-sided provisioning, the LP deposits only one type of token. The protocol then programmatically pairs this with another token, often a native governance token, to create a new liquidity pair.

This simplifies the user experience but can expose the LP to greater impermanent loss if the paired token is highly volatile.

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