What is a single token pool?

Single token structure is based on a rebalancing/repricing token concept. This is the most popular design and is used by the majority of pools, likely because of its simplicity. By minting a single token to the user upon deposit, the pool seeks to capture the accrual of staking rewards and penalties within the same token. It can be done in 2 ways:

What are liquidity pool (LP) tokens?

Liquidity pool tokens (sometimes known as liquidity provider tokens) are given to users who provide liquidity in liquidity pools. These tokens act as a receipt, allowing you to claim your original stake and interest earned.

What happens if a deposit ETH token is held in a pool?

As rewards of the pool grow, the deposit ETH token’s balance will remain unchanged, yet its presence in the address will trigger accrual of reward ETH (rwETH) tokens to reflect growth of rewards in the pool. For as long as the deposit ETH token is held, it accrues reward ETH tokens.

Why do tokens grow faster if a pool has a lower fee?

The token from the pool with a lower fee will naturally grow faster than the token from the pool with a higher fee. This feature is of greatest importance for the comparative assessment of the price of different tokens in the secondary market and their use in DeFi applications.