This is just a guess because I haven't researched the boost/buck circuit that much yet - I believe the output pulse wave is being clipped (removing the negative pulse) by the diode lowering the effective voltage below the 5V that the chip is rated for. Like I said it's just a guess but it allows the chip to be adjusted lower than it was designed to go.
I thought these things output DC... there is a frequency since it ends up being a pulsed circuit to boost... but I don't think there is a negative part of the wave. I could be wrong. I think of it as "a black box" xx volts input and yy volts output pulsed (pretty fast) and smoothed with caps to standard DC. e.g. if there is a negative wave internally, it is already rectified by the time it comes out, not clipped.
@DaveP we're talking about the OPs question on why he sees diodes in boosted vv mods (see post 13). Not AC current. The implication is single battery DC non-pulsed.... so no rectification needed if the above is correct.
The "variable DC supply" you refer to is normally created with a switching regulator (or even linear), but requires 2 x 3.7 v batteries since it needs higher input than output. So people use boosting circuits to take, say a single 18650, and boost it to higher voltage.
Of course, IMHO, the easiest thing to do is use 2 smaller batteries and a switched adjustable regulator and forget boosting altogether until super batteries (like the nano tech stuff) are available. That will make boosting practical in a smaller lighter package, but that's me. To me, 2 14500s are close to the same bulk as 1 18650 so buck, no boost for me.
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