Current status
Bolt’s LP program is being expanded. Specific fee rates and deposit terms are being finalized. Contact the team for current details.
The problem with traditional LP
AMM liquidity providers face a structural trade-off. Deposit paired assets into a pool, earn fees on swaps, but the pool automatically rebalances by shifting the asset ratio. LPs end up holding more of the depreciating asset. This is , and for volatile pairs it costs an estimated 5 to 11 percent per year. On top of that, LPs manage positions, adjust price ranges, and absorb rebalancing costs. Returns depend on sustained volume. Capital commitment is indefinite. Most deposited capital sits idle.How Bolt LP works
In Bolt’s architecture, pools are settlement infrastructure. Pricing is decided upstream by the . Pools execute trades against the committed price. This changes how LPs earn.1
Deposit
Make a deposit into an pool. No paired asset requirement. No price range to configure. Deposit your chosen asset(s) and your capital is ready to settle swaps.
2
Settlement
Deposited liquidity settles swaps at the . Every settled swap generates fees. You earn proportionally to the volume settled through your capital.
3
Hedging
All directional exposure is hedged after settlement. Your deposited capital is not exposed to directional risk. The price movement that creates impermanent loss in traditional AMMs is handled by hedging infrastructure.
4
Fee accrual
Fees accrue on every swap settled through your liquidity. No impermanent loss. No rebalancing cost. Capital stays in the pool and generates fees from every trade it settles.
Why there is no impermanent loss
In traditional AMMs, the pool rebalances through the pricing curve. When the price of an asset moves, the pool ratio shifts and LPs absorb the difference. The curve is the pricing mechanism, and impermanent loss is the cost of that mechanism. In Bolt, pricing is decided upstream. The pool settles at the convergence price, not at a curve-derived price. Directional exposure is hedged externally. The assets in the pool do not rebalance based on price movement. They cycle through the settlement-hedging loop.Your capital reflects what you deposited, plus accrued fees. No rebalancing. No directional risk.
Comparison
Capital Efficiency
How convergence pricing decouples execution quality from capital depth.
Contact the Team
Current details on LP participation and fee structures.