What Is a ‘Single-Sided’ Liquidity Pool and How Does It Function Differently?

A typical pool requires two assets. A single-sided pool allows a user to deposit only one asset, with the protocol managing the conversion or pairing on the backend, often by borrowing the other asset or using a complex staking mechanism.

It simplifies the user experience but introduces more complex smart contract logic and potentially higher protocol-specific risks compared to a standard two-sided pool.