What Are the Risks Associated with Providing Single-Sided Liquidity in Certain AMM Designs?

Single-sided liquidity provision, where a user deposits only one token, is often available in specialized AMMs like those for concentrated liquidity or token launches. The primary risk is still impermanent loss, as the deposited token may be swapped for the other token in the pair to maintain the pool's balance, potentially realizing a loss upon withdrawal.

There is also the risk of smart contract failure or protocol-specific lock-up risks.