What Is a “Single-Sided” Liquidity Provision, and How Does It Mitigate IL?

Single-sided liquidity provision is a feature where a user can deposit only one asset into a pool, and the protocol automatically swaps half of it for the other asset, or uses a mechanism to ensure the user is not exposed to the full price divergence. While it appears to mitigate IL by reducing the initial price exposure, the underlying mechanics still involve the pool's rebalancing, and the user is essentially exposed to the risk of the asset they didn't deposit.