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Glossary

A reference of essential terminology used across Bolt’s documentation. Terms are grouped by domain for quick navigation.

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Core architecture

The zero slippage execution layer. A prop-AMM that uses oracle-referenced pricing to deliver deterministic swap execution on Sui and Archway. The price you see is the price you get.
Proprietary automated market maker. The category Bolt occupies. Unlike traditional AMMs, a prop-AMM uses oracle-referenced pricing rather than bonding curves, decoupling execution quality from liquidity depth.
Bolt’s pricing engine. The AVO ingests real-time order books from multiple centralized exchanges, applies a 6-step EMA velocity model to predict where price is heading, and sizes spreads using Avellaneda-Stoikov market-making theory. Prices are derived from depth-weighted composite mid-prices with staleness filtering and outlier rejection. The AVO is the trust boundary of the system: every other component validates its output rather than computing prices independently.
A Bolt smart contract deployed on a supported chain (Sui or Archway) that validates oracle prices, executes swaps atomically, and manages its own liquidity pool. Each Outpost is the on-chain entry point for traders and integrators.
The entity responsible for three sequential roles in every Bolt swap: Order Settlement (immediately providing liquidity to the user on-chain at the oracle-validated price), Hedging (closing the resulting directional exposure on external venues), and Rebalancing (returning assets to the Outpost pool to restore inventory). These three roles form the continuous cycle that enables capital-efficient execution.

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Pricing and execution

The property where trade size does not affect the execution price. Achieved in Bolt because pricing is oracle-derived, not pool-depth-derived. A $100 swap and a $100,000 swap receive the same price relative to the market.
The verification layer within the Adaptive Velocity Oracle. Fair value is adjusted by net inventory using Avellaneda-Stoikov reservation pricing, the on-chain price is clamped to a maximum deviation of 0.7% per tick from the composite mid, and every fill is scored for flow toxicity within 100 to 500ms. This ensures execution quality is verifiable and the on-chain price cannot deviate meaningfully from real-time market consensus.
The mathematical logic within the Outpost smart contract that calculates amountOut from amountIn, oracle price, and fee parameters. Deterministic and replicable off-chain. See Contract Math reference.
The practice of simulating Bolt swap outputs locally by replicating the contract math with indexed pool state and oracle prices. Eliminates the need for on-chain quote calls. Critical for aggregator route evaluation and UI price display. See Off-Chain Quoting reference.
A time window on each oracle price. The Outpost rejects any swap where the oracle price has expired, preventing stale pricing from being exploited.
A safety parameter on the Outpost that rejects swaps when the oracle price deviates beyond a configured threshold from the last known market price. Acts as a circuit breaker during extreme volatility.

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Liquidity and capital

A liquidity provision model where LPs deposit a single asset into an Outpost pool. No paired asset requirement and no price range to manage. The simplest way to provide liquidity in DeFi.
A hedging strategy where the market maker offsets all directional exposure from on-chain swaps by taking opposite positions on external venues. This protects pool capital from market movements and eliminates impermanent loss for LPs.
The loss LPs experience in traditional AMMs when the price of deposited assets diverges from the deposit-time price. Bolt LPs do not experience impermanent loss because the market maker hedges all directional exposure.
A measure of capital efficiency comparing trading volume processed to capital deployed. Bolt’s ratio of 5,000x (January 2026) demonstrates the architectural capacity of oracle-referenced pricing. When pricing does not depend on pool depth, capital efficiency becomes a function of oracle accuracy and hedging speed, not TVL.
The current on-chain state of an Outpost pool, including available inventory per asset, fee parameters, oracle references, and minimum swap amounts. Indexing pool state is essential for off-chain quoting. See Pool State Indexing reference.

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Infrastructure

The Cosmos-native messaging standard used by Bolt on Archway for cross-chain asset transfers. Enables assets like TIA, ATOM, and OSMO to be traded through Bolt on Archway.
The smart contract framework used for Bolt’s Archway deployment. Bolt Outposts on Archway are CosmWasm contracts written in Rust.
The smart contract language used for Bolt’s Sui deployment. Bolt Outposts on Sui are Move modules.
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