What Is the Primary Risk of “Single-Sided Staking” in DeFi?

"Single-sided staking" often refers to depositing one asset into a pool that internally pairs it with another asset, usually a stablecoin, while the user only sees their initial deposit. The primary risk is often still impermanent loss, as the underlying mechanism may involve a liquidity pool.

Another risk is the complexity and smart contract risk of the platform abstracting the pairing.