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Pricing

Cross-venue market composite

A market price constructed from live prices and sizes across the venues driving broader price discovery.
A price available for actual execution, not only as a reference.Execution remains subject to available inventory and the limits applicable to the quote.
The executable bid and ask published onchain by Bolt.
The process that determines where a market price comes from.In Bolt, price formation is derived from broader market data rather than local pool depth.
A quote for a specific trade size and direction that defines the execution outcome before the transaction is submitted.
The change in execution price caused by moving through available liquidity as trade size increases.
The difference between the execution outcome expected when a quote is observed and the outcome ultimately received.

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Execution and settlement

Execution capacity

The amount of a trade that can execute against the inventory available for a given market, direction, and quote.
Assets held onchain and available for trade execution and settlement.
Execution and settlement complete together in a single transaction, or the swap does not complete.
A boundary that determines whether a trade can execute under the conditions of a given quote.
The behavior when a swap falls outside the capacity or limits available for execution, rather than filling at a progressively worse price.

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Pricing infrastructure

Pricing Engine

Bolt’s offchain system for processing broader market data and forming the executable bid and ask that are submitted onchain.
The onchain contract that receives Bolt’s submitted quote and publishes the executable bid and ask used by the pool and router contracts.
A contract-enforced bound on how far a newly posted price may move from the previous posted price.
Bolt’s offchain system for tracking inventory and risk state and managing the inventory required for execution.

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Capital and market structure

Capital Turnover

A measure of how intensively onchain liquidity is used for client execution.It is calculated as client trading volume divided by the value of the onchain liquidity supporting that volume.
The amount and distribution of liquidity available in a pool.Greater depth generally allows larger trades to execute with less movement through a pool-based pricing curve.
A reward used to attract or retain liquidity in a market, often through token emissions or other subsidies.
The cost to a passive liquidity provider of trading against better-informed flow or against a market price that has moved before the pool has adjusted.
A measure of the performance difference between passive liquidity provision and continuously rebalancing the same underlying assets as market prices change.

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Abbreviations

How Bolt Works

See where these terms fit in the Bolt architecture.

FAQ

Answers to common questions about Bolt, execution, and integration.