Traditional LPs require providing both tokens in a pair. Single-sided options let you deposit just one asset. Each approach has distinct advantages and trade-offs.
Dual-Sided (Traditional)
Provide both tokens in equal value (e.g., 50% ETH, 50% USDC). Full exposure to both assets means shared upside and downside. Standard on Uniswap, SushiSwap, etc.
Single-Sided Options
- Bancor: Single-sided with IL protection
- Thorchain: Native single-sided vaults
- Lending protocols: Deposit one asset, earn interest
Choosing Your Approach
Single-sided is simpler and eliminates the need to hold two assets. Dual-sided typically offers higher yields but requires more capital management and IL awareness.