Lending Protocols

This page outlines how lending protocols integrate with Bolt to improve liquidation execution, price stability, and risk management.

Overview

Bolt is an on-demand liquidity protocol that provides deterministic, oracle-anchored execution without relying on curve-based liquidity. For lending protocols, Bolt serves as a price-stable execution venue for liquidations, rebalancing, and large asset conversions.

Bolt is designed to complement lending markets by reducing slippage risk and execution uncertainty during high-volatility events.

How Bolt Fits Into Lending Protocols

Lending protocols require predictable execution when converting collateral, especially during liquidations. Curve-based AMMs often introduce slippage, price impact, and adverse execution when liquidity is stressed.

Bolt addresses these challenges by:

• Anchoring pricing directly to an oracle

• Eliminating curve-based price deterioration

• Executing trades based on available inventory rather than passive depth

This makes Bolt suitable for deterministic collateral conversions.

Benefits for Lending Protocols

Deterministic Liquidation Execution

• Oracle-anchored pricing

• No slippage due to liquidity curves

• Predictable amountIn → amountOut outcomes

This reduces bad debt risk and improves protocol safety.

Improved Capital Efficiency

• Large conversions without over-reliance on deep AMM liquidity

• Reduced exposure to thin or volatile markets

• More stable liquidation paths during stress events

Reduced Market Impact

• No curve-based price movement during execution

• Lower cascading price effects during liquidations

• Improved market stability for borrowers and liquidators

Integration Use Cases

Lending protocols commonly integrate Bolt for:

• Liquidation execution

• Collateral rebalancing

• Asset conversions for treasury or risk management

• Backup liquidity during market stress

Bolt can act as a primary or fallback execution venue.

Evaluation Considerations

When evaluating Bolt, lending protocols should focus on:

• Price quality vs oracle

• Executable size without slippage

• Inventory availability at execution

• Replenishment reliability

• Execution determinism under stress

Traditional metrics such as TVL are not representative of execution quality in Bolt’s model.

Integration Path

Bolt is available via SDK integration and is compatible with existing oracle and liquidation workflows.

Typical steps:

1. Integrate the Bolt SDK

2. Define supported assets and execution limits

3. Test liquidation and conversion flows

4. Deploy with monitoring and safeguards

Summary

For lending protocols, Bolt provides a deterministic, oracle-priced execution venue that improves liquidation outcomes, reduces slippage risk, and enhances protocol safety — without relying on deep passive liquidity.