> ## 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. # What is Bolt Liquidity? > What Bolt Liquidity does and who it serves. ## The mechanism Bolt Liquidity is a prop AMM (proprietary AMM) that makes assets tradable onchain at the market price, not the pool price, **leaving far less capital committed to liquidity.** We derive price from the venues driving global price discovery, make it executable onchain, and settle each trade atomically against pool inventory. Market data is processed offchain and converted into an executable quote. That quote is published onchain, where available pool inventory provides the capacity for trades to execute and settle. ![](https://mintcdn.com/boltliquidity/9Xv_4QFl1pwBGnWx/images/architecture.svg?fit=max\&auto=format\&n=9Xv_4QFl1pwBGnWx\&q=85\&s=9c4e36482bd204443454566d9b41d939) > [!NOTE] > > **Price formation and execution capacity are separate.** Price formation does not depend on local pool depth. Executable size depends on available inventory and the limits applicable to each quote. > > [See the full architecture](/how-bolt-liquidity-works.md) *** ## Why prop AMMs exist Most conventional AMMs are information-agnostic: their pricing rule observes the state of the local pool, not the state of the broader market. When the market moves elsewhere, the pool does not independently know that its previous price is stale. A trade changes the pool state, and arbitrage helps bring its price back toward the market. The same liquidity is therefore doing several jobs at once: supplying inventory, determining marginal price, absorbing price impact, and bearing the cost of keeping a locally formed price aligned with external markets. **Prop AMMs separate those functions.** Price can update independently of the trade that eventually consumes the liquidity. Market information determines the quote; pool inventory provides the capacity to execute and settle against it. That distinction also separates a prop AMM from simply putting an oracle next to a pool. A reference price describes the market. A pricing system turns market information into an executable bid and ask. Bolt Liquidity derives price from the venues driving global price discovery, makes it executable onchain, and settles each trade atomically against pool inventory. The result is a different role for liquidity. Pool depth no longer has to make the price credible. **Capital can instead be deployed around the inventory and execution requirements of the market.** ### How the architectures differ | | Conventional AMM | RFQ | Bolt Liquidity | | - | - | - | - | | **Price formation** | Derived from local pool state | Produced offchain for a requested trade | Derived from venues driving global price discovery | | **When the quote exists** | Determined by the current pool state | Generated in response to a quote request | Published onchain before the trade arrives | | **Execution** | Onchain | Requires offchain quote coordination before settlement | Onchain | | **Role of liquidity** | Inventory and price formation are coupled | Liquidity is quoted for the requested trade | Pool inventory provides execution and settlement capacity | | **Composability** | Native onchain execution | More dependent on offchain coordination | Native onchain execution | *** ## What that changes Most onchain markets ask the same pool to do two jobs at once: help determine the price and provide the liquidity needed to execute against it. That makes market quality expensive. Improving execution often means adding more depth, which means committing more capital or paying incentives to attract it. **Bolt Liquidity separates those jobs.** The price can reflect the broader market regardless of how much capital is sitting in the local pool. That means liquidity can be deployed around execution requirements instead of also carrying the burden of creating a credible local price. For the party funding the market, the consequence is straightforward: less capital has to remain committed purely to support depth. The same liquidity can be used more intensively, leaving more capital available for product, ecosystem, and growth. The argument in full: [Separating Price from Pool Depth](/price-and-pool-depth.md). > [!NOTE] > > **Over 100x capital turnover rate.** Capital turnover measures how much client volume each dollar of onchain liquidity supports in a day. [How the measure works](/capital-efficiency.md) *** ## Who Bolt Liquidity serves > **[Asset issuers and foundations](/asset-issuers.md)** > > An asset that trades well without buying equivalent depth. > **[Protocols and venues](/defi-protocols.md)** > > Bounded execution cost for lending, vaults, perps, and liquidation. > **[Aggregators and wallets](/aggregators-wallets.md)** > > A route that fills when the others don't. *** ## Proven on Sui Bolt Liquidity is live on Sui today and is currently expanding multichain. > **#4** > > SUI/USDC venue rank > **1 in 50** > > Sui transactions touch Bolt Liquidity (Roughly 2% of all transactions on Sui go through Bolt Liquidity, despite currently supporting only SUI/USDC.) > **85+** > > Apps and bots use Bolt Liquidity regularly *** > **[Where to Trade](/where-to-trade.md)** > > Live pairs, live routes, and where Bolt Liquidity runs next. > **[5-Minute Integration](/5-minute-integration.md)** > > Install the SDK and route your first swap. 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