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The pricing pipeline

Bolt synchronizes markets through a four-step pricing pipeline. The Convergence Engine builds a fair price from a cross-venue composite, forecasts its near-term path, and posts one executable convergence price onchain. The Execution Rail settles trades against that price atomically, while every divergence feeds back into the Compounding Architecture to continuously improve the system.
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01: Market Data: Ingest market microstructure

Bolt ingests real-time market and liquidity data across numerous trading venues and builds a live view of market conditions: depth-weighted composite mid-prices, with staleness filtering and outlier rejection. Bolt’s AVO (Adaptive Velocity Oracle) adapts how quickly that composite is followed, projecting short-horizon price motion and producing a stable fair mid. Spreads are then sized from live volatility and velocity. The result is a full read of the market that everything downstream is built on.
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02: Quoting Engine: Compute the convergence price

The engine takes that market view and forms the mid Bolt should quote around. Absent a qualifying signal, the mid is the composite, smoothed through AVO. When short-horizon signal is strong enough and economically worth encoding, the engine applies a small, gated lead toward where the composite is headed. This is the convergence price: the near-future fair price Bolt may lean toward. The output is a single fair mid the bid/ask are built around. Selective when leading, composite-faithful when not.
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03: Oracle: Commit the price onchain

That fair mid is published onchain as an executable bid/ask quote and is now settlement-ready. Each tick is clamped to a set maximum deviation from the composite mid, keeping the onchain price tightly bound and its execution quality verifiable onchain.
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04: Liquidity Pools: Settle flow against the quote

Pools hold the inventory that settles real trades against the onchain quote, atomically, in a single transaction, with protocol fees applied on top. Every trade generates new signals the engine learns from, while trading venue microstructure remains the primary market-data backbone.
Together, these four stages turn fragmented market data into synchronized execution, with every trade continuously improving the system.

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How the parts map to the system

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System architecture

The pipeline describes how Bolt prices. The architecture below shows how the components are wired together: the oracle ingests market data and publishes the convergence price, pool contracts settle trades against it, and three actors interact with the pools. Users and partners execute swaps, while the Position Engine manages the resulting inventory through netting, hedging, and rebalancing. Hover over each component for details.

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Key concepts

Pricing is decided upstream by the Convergence Engine. Pools are settlement infrastructure: they hold inventory, execute trades atomically against the committed price, and pass flow data back to the engine. The pool settles. The engine prices.
The smoothing component within the Convergence Engine. AVO turns the mid (whether composite or convergence-adjusted) into a stable oracle fair price. It adapts how quickly it follows moves: faster when the book is moving decisively, slower when spreads are wide or the signal is noisy.
The depth-weighted mid-price across multiple trading venues. This is the unconditional fair price: what the market looks like right now. It is also the fallback. When the engine has no strong directional signal, the composite is the mid that Bolt’s AVO smooths and quotes are built around.
The engine’s short-horizon forecast of where the composite is heading. When the forecast is confident enough and economically worth encoding, Bolt leans slightly ahead of the current composite. When it is not, the convergence price collapses back to the composite and Bolt’s AVO tracks it unchanged. The engine leads selectively, not continuously.

Capital Efficiency

How convergence pricing decouples execution quality from capital depth.

Provide liquidity

How Bolt’s LP model works.