Technical Architecture
Bolt’s architecture is purpose-built for efficient, cross-chain liquidity provision with a strong emphasis on execution quality and capital efficiency. It brings together three primary components — the Price Oracle, Bolt Outposts, and Market Makers (Order Settlers) — each playing a distinct but interconnected role.
Core Components
Price Oracle
The Bolt Price Oracle is the foundation of the protocol.
It continuously sources market data (liquidity depth, volumes, volatility) from both centralized and decentralized exchanges.
A network of validators emits Proof of Pricing Efficiency (PoPE), verifying that trades are executed at the best available market rate.
This mechanism effectively acts as a global quoting engine, ensuring price consistency across all chain-specific Outposts.
Bolt Outposts
Bolt Outposts are chain-specific smart contracts deployed across ecosystems such as EVM, SVM, and Sui.
They serve as liquidity hubs, exposing Bolt’s pricing and settlement logic directly to users on any supported chain.
Outposts utilize single-sided, multi-quote liquidity pools — meaning LPs provide one base asset, which can be traded against multiple quote assets.
This pool structure eliminates impermanent loss and avoids liquidity fragmentation across pairs.
Market Makers (Order Settlers)
Market Makers continuously monitor Bolt Outposts for swap orders.
When a swap is initiated, they hedge the trade on external CEXs to remain delta-neutral.
They rebalance drained pools by returning hedged assets onchain, ensuring liquidity remains aligned.
Market Makers earn fees from both swaps and liquidity provision, incentivizing active participation in maintaining healthy pools.
Trade & Liquidity Flow
Swap Execution
Order Creation – User initiates a swap on an Outpost.
Price Validation – Oracle provides the latest PoPE-verified market price.
Hedging – Market Maker executes an offsetting trade on a CEX.
Settlement – Outpost finalizes the swap, delivering assets to the user at zero slippage.
Liquidity Lifecycle
LPs deposit base assets into Bolt pools.
Market Makers use these pools to fulfill swaps and hedge externally.
Fees are distributed proportionally to LPs and Market Makers.
LPs can withdraw liquidity at any time, alongside accrued fees.
Security & Extensibility
Security – Price proofs have expiration periods, Outposts enforce deviation limits, and IBC ensures secure cross-chain communication.
Extensibility – Modular design allows new Outposts to be deployed rapidly across emerging chains, while maintaining protocol consistency.
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