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This is present in all dynamics processors.


Even a perfect gain element will cause distortion to the audio path because the clean dry signal is modulated by the side chain control signal that isn't a steady DC.


The faster/shorter the time constants in the control path, the higher the distortion. You can visualize what is going on for a very low frequency sinewave. While the sine waveform edge is rising, it will reduce gain, and during the falling part of the waveform it will restore gain. This changing gain across a single cycle of the waveform causes the distortion. 


You should measure lower distortion with higher frequency sine waves for a given time constant speed.


JR


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