Hello, I am super new to this whole space, so forgive me if this sounds like an obvious or stupid question. I was reading up on impermenant/divergence loss and I think I have a reasonable handle on it at a high-ish level.
All the examples I have seen postulate that you enter the pool with some ratio of ALL the pool tokens. But there are some pools (all pools?) that allow one to provide liquidity for only a single token in the pool. How does that work wrt divergence loss?
If I am grasping the idea correctly in the scenario that we have say an 80/20 AAVE/WETH pool, and someone uses the pool to swap WETH for AAVE (so +WETH, -AAVE). This throws the pool ratio off and will cause the pool AAVE price to increase to attract current AAVE owners to swap their AAVE in exchange for WETH, re-balancing the pool and netting the AAVE contributor(s) a profit as they get more WETH for their AAVE than they could get elsewhere.
This makes sense, and if I contribute both tokens initially it stands to reason that some portion of the withdrawn AAVE in the original WETH->AAVE swap was my original AAVE and thus I have a claim on slightly less AAVE and slightly more WETH (before arbitrage).
But if I ONLY contributed AAVE it seems I can’t have any kind of claim on the WETH side of the pool, so does that mean in every such transaction I only end up with less AAVE?
Is the idea that the arbitrage will return the pool to the proper balance and in the end I will have a claim on the same amount of AAVE as before the swap + arbitrage, or will I always lose some fractional amount due to the arbitrage happening?
I guess a further question on the ‘only provide one token to the pool’ scenario is, doesn’t my deposit itself throw the pool out of balance and trigger arbitrage immediately?