torchliquidationbot_skill

Overview

This skill is an autonomous vault-based liquidation keeper for Torch Market lending on Solana. It continuously scans migrated token lending markets, detects underwater loan positions (LTV > 65%), and executes liquidation transactions routed through a user-controlled Torch Vault. The agent generates a disposable keypair at runtime and never holds meaningful funds; all SOL and collateral flow through the vault under the authority's control.

How this skill works

On startup the agent verifies a linked vault, then enters a scan loop: discover migrated tokens, read lending state, enumerate holders, and check each loan position. When a position is liquidatable the bot builds a liquidation transaction with the Torch SDK, signs it with the disposable agent keypair, and submits it so the vault pays the debt and receives collateral (including the 10% liquidation bonus). The human principal creates and funds the vault, links the agent, and retains authority to withdraw, unlink, or revoke access at any time.

When to use it

• You maintain a funded Torch Vault and want automated liquidation execution to capture 10% bonuses.
• You need a keeper that routes all funds through a vault for custody and auditability.
• You want a minimal, focused bot that runs continuously and handles signer management automatically.
• You prefer the agent to use a disposable runtime keypair rather than persistent private keys.
• You operate on Solana mainnet with a reliable RPC endpoint and want programmatic liquidation coverage.

Best practices

• Create and fund the vault from an authority wallet (hardware wallet or multisig recommended).
• Link the agent pubkey from the authority and verify link before running the bot in production.
• Use a secure, private Solana RPC provider (HTTPS) to avoid RPC reliability and privacy issues.
• Keep the agent key ephemeral (default) and never store or transmit private keys from the authority.
• Monitor vault balances and set SCAN_INTERVAL_MS to balance responsiveness and RPC load.

Example use cases

• Automatically capture liquidation bonuses for a funded Torch Vault during market volatility.
• Run a custodial liquidation service for a DAO or institutional vault with authority-managed withdrawals.
• Integrate with on‑prem monitoring to alert authority when large liquidations occur or vault liquidity is low.
• Backtest liquidation logic locally using a mainnet fork (Surfpool) before production deployment.