DeFi Education

What is a Single-sided pool?

Staking is one of the simpler DeFi use-cases and is often one of the first ways many digital asset holders gain exposure to decentralized finance.

What is Asset Staking?


Staking is one of the simpler DeFi use-cases and is often one of the first ways many digital asset holders gain exposure to decentralized finance. This is the process of helping to participate in the network governance of Proof-of-Stake (POS) blockchains, by delegating digital assets to a validator node or having one. When you help to secure the blockchain by staking assets, you earn rewards that are automatically delivered by the network. Other Staking models are currently being implemented in many DeFi protocols, like Single-Sided Pools and NFT Staking.

What is a Single-Sided Pool?


Single-sided staking is the opposite of the commonly utilized pair-based staking that AMMs usually have. In most AMMs currently deployed, liquidity provision has to be done by providing an equal value of liquidity on both sides. The requirement to stake both tokens in a liquidity pair increases exposure for the liquidity provider, who now has to manage two different assets. This also doubles the capital requirement or halves the position for a single token.


There is a new Liquidity Pool model where liquidity providers can stake their assets without requiring a counter-balance of equivalent value: Single-Sided Pools, where users can provide liquidity to a pool with a single token and maintain 100% exposure to that token. Liquidity Providers can stay in the pool with a single asset and collect rewards while earning trade fees and Yield Farming rewards.

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