> ## Documentation Index
> Fetch the complete documentation index at: https://docs.boltliquidity.io/llms.txt
> Use this file to discover all available pages before exploring further.

# Lending Protocols

> How lending protocols use Bolt for better liquidation execution and composable collateral swaps.

## Better liquidation execution. Composable collateral swaps. Zero slippage.

Lending protocols depend on reliable liquidation execution. When a position becomes undercollateralized, the protocol needs to sell collateral quickly and at a predictable price. Slippage on liquidation swaps directly impacts the protocol's solvency margin. The same problem applies to collateral swaps: users converting between collateral types need predictable execution. **Bolt solves both problems.**

## Why Bolt for lending

### Predictable liquidation pricing

Oracle-referenced pricing means liquidation swaps execute at market price regardless of size. No slippage means no unexpected losses during liquidation cascades. Your protocol knows exactly what collateral will convert to at the moment of liquidation.

### Composable integration

Bolt Outposts are fully composable smart contracts. Lending protocols can call them directly from liquidation logic. The oracle price has been posted on-chain ahead of the call, so settlement is atomic and final with no off-chain coordination at liquidation time.

### Capital efficiency

Bolt does not require deep pools to offer tight execution. This means reliable liquidation execution even in early-stage markets without deep liquidity. Your protocol can liquidate positions even when TVL is low.

<Note>
  Bolt's composable, on-chain settlement model makes it particularly well-suited for automated liquidation flows where predictability and atomicity are critical.
</Note>

## Integration path

Integrate via the Bolt SDK. Liquidation contracts can call Bolt Outposts directly for atomic settlement. See the [TypeScript SDK reference ](https://docs.boltliquidity.io/sui-typescript-sdk)for complete integration details.

The SDK handles quote retrieval and settlement routing. Your protocol's liquidation logic adds a Bolt swap to the liquidation flow, executing collateral conversion at the oracle price in a single transaction.

***

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