torch-liquidation-agent

Multi-token liquidation bot for Torch Market lending on Solana, built on solana-agent-kit + solana-agent-kit-torch-market.

Same functionality as torch-liquidation-bot but uses the Torch Agent Kit plugin instead of raw torchsdk — making it compatible with AI agent frameworks (LangChain, Vercel AI, OpenAI tools).

Install

npm install torch-liquidation-agent

How It Works

Every migrated token on Torch has a built-in lending market. Holders borrow SOL against their tokens. When a borrower's loan-to-value ratio exceeds 65%, anyone can liquidate the position and collect a 10% bonus on the collateral.

This bot finds those opportunities before other bots do by predicting which positions will go underwater:

1. Scan -- discovers all tokens with active lending markets
2. Profile -- checks each borrower's SAID reputation and trade history
3. Score -- rates every loan on a 4-factor risk model (0-100)
4. Liquidate -- executes when a position crosses the threshold and the profit exceeds your minimum

Quick Start

MODE=bot WALLET=<base58-private-key> RPC_URL=<rpc-endpoint> npx torch-liquidation-agent

Modes

bot (default) -- full liquidation bot

Runs two concurrent loops:

• Scan loop (every 60s) -- finds tokens with active lending, snapshots prices
• Score loop (every 15s) -- profiles borrowers, scores loans, executes liquidations

MODE=bot WALLET=<key> RPC_URL=<rpc> npx torch-liquidation-agent

info -- display lending parameters

# all migrated tokens with lending
MODE=info RPC_URL=<rpc> npx torch-liquidation-agent

# specific token
MODE=info MINT=<mint> RPC_URL=<rpc> npx torch-liquidation-agent

watch -- monitor your own loan health

MODE=watch MINT=<mint> WALLET=<key> RPC_URL=<rpc> npx torch-liquidation-agent

# with auto-repay if your position becomes liquidatable
MODE=watch MINT=<mint> WALLET=<key> AUTO_REPAY=true RPC_URL=<rpc> npx torch-liquidation-agent

Risk Scoring

Every loan gets a composite score from four weighted factors:

| Factor | Weight | What It Measures | |--------|--------|------------------| | LTV proximity | 40% | How close to the 65% liquidation threshold | | Price momentum | 30% | Collateral price trend (linear regression on recent snapshots) | | Wallet risk | 20% | SAID trust tier + trade win/loss ratio | | Interest burden | 10% | Accrued interest relative to collateral value |

Positions above the risk threshold (default: 60) are flagged and watched closely. Liquidatable positions with profit above your minimum are executed immediately, highest profit first.

Configuration

| Variable | Required | Default | Description | |----------|----------|---------|-------------| | RPC_URL | yes | -- | Solana RPC endpoint | | WALLET | bot/watch | -- | Base58 private key | | MODE | no | bot | bot, info, or watch | | MINT | info/watch | -- | Token mint address | | SCAN_INTERVAL_MS | no | 60000 | Token discovery interval | | SCORE_INTERVAL_MS | no | 15000 | Position scoring interval | | MIN_PROFIT_SOL | no | 0.01 | Minimum profit to execute liquidation | | RISK_THRESHOLD | no | 60 | Risk score cutoff for close monitoring | | PRICE_HISTORY | no | 20 | Price snapshots to keep for momentum | | LOG_LEVEL | no | info | debug, info, warn, error |

Architecture

src/
├── types.ts            — interfaces and contracts
├── config.ts           — env vars → SolanaAgentKit + typed config
├── logger.ts           — structured logging
├── utils.ts            — shared helpers
├── scanner.ts          — discovers tokens with active lending
├── wallet-profiler.ts  — SAID reputation + trade history
├── risk-scorer.ts      — 4-factor risk model
├── liquidator.ts       — executes liquidation txs via agent kit
├── monitor.ts          — scan + score orchestration
└── index.ts            — entry point

Differences from torch-liquidation-bot

| | bot (torchsdk) | agent (agent kit) | |---|---|---| | SDK | torchsdk direct | solana-agent-kit-torch-market plugin | | Transaction signing | Manual (sendAndConfirmTransaction) | Handled by SolanaAgentKit | | Holder discovery | torchsdk.getHolders() | Solana RPC getTokenLargestAccounts | | SAID verification | torchsdk.verifySaid() | Direct SAID API call | | AI agent compatible | No | Yes (LangChain, Vercel AI, OpenAI tools) |

Lending Parameters

| Parameter | Value | |-----------|-------| | Max LTV | 50% | | Liquidation threshold | 65% LTV | | Interest rate | 2% per epoch (~7 days) | | Liquidation bonus | 10% of collateral | | Min borrow | 0.1 SOL |

Testing

Requires Surfpool running a mainnet fork:

surfpool start --network mainnet --no-tui
pnpm test        # lending lifecycle test
pnpm test:bot    # bot module test (scanner, profiler, scorer, liquidator)

Security

• Private keys loaded from env, never logged or transmitted
• All transactions signed by SolanaAgentKit via KeypairWallet -- keys never leave your environment
• Minimum profit threshold prevents unprofitable executions
• Graceful shutdown on SIGINT

Links

• solana-agent-kit -- the agent framework
• solana-agent-kit-torch-market -- Torch Market plugin
• torch-liquidation-bot -- the torchsdk-based version
• Torch Market -- the protocol
• SAID Protocol -- wallet reputation layer

License

MIT