torch.market

Every token launched on torch gets a funded treasury, a 300M token lending reserve, margin lending, short selling, and on-chain pricing — all live from migration.

No external LPs. No oracle feeds. No protocol token. No bootstrapping.

What Torch Is

A protocol where every token launches with its own margin market.

Lending: borrow SOL against token collateral from the token's own treasury
Short selling: borrow real tokens from the 300M treasury lock, sell on the real market
Pricing: Raydium pool reserves — no external oracle
Depth-based risk engine: max LTV scales with pool SOL depth (25% at <50 SOL, up to 50% at 500+ SOL). Deeper pools are harder to manipulate, so higher leverage is permitted. Combined with per-user borrow caps, the effective LTV for long positions is typically <5% — making liquidation structurally near-impossible. No oracles, no stored baseline, no keepers. The pool itself is the source of truth.
Liquidation: permissionless — anyone can call. Exists primarily as a backstop for shorts and extreme multi-sigma events on longs.
Parameters: immutable on-chain — no admin key changes them

Shorts are not synthetic. Borrowed tokens are real. Selling them moves the real price. Short sellers are market participants contributing to price discovery.

Token Lifecycle

CREATE → BOND → MIGRATE → TRADE → MARGIN
                                     │
                                ┌────┴─────┐
                              LEND     SHORT SELL
                                │          │
                              REPAY    CLOSE
                                │          │
                              LIQUIDATE  LIQUIDATE

Bonding — constant-product curve. SOL splits: curve (100% of tokens to buyer) + treasury (17.5%→2.5% dynamic SOL rate). 2% max wallet. Completes at 100 or 200 SOL.

Migration — permissionless. Creates Raydium pool, burns LP tokens (liquidity locked forever), revokes mint/freeze authority permanently, activates 0.07% transfer fee.

Trading — token trades on Raydium. Transfer fees harvest to treasury as SOL. Treasury grows perpetually.

Margin — two capital pools, two-sided margin:

| Pool | Asset | Purpose | |------|-------|---------| | Token Treasury | SOL | Lending pool — borrow SOL against token collateral | | Treasury Lock | 300M tokens | Short pool — borrow real tokens against SOL collateral |

Constants

SUPPLY          1,000,000,000 tokens (6 decimals)
CURVE_SUPPLY    700,000,000 (70%)
TREASURY_LOCK   300,000,000 (30%)
MAX_WALLET      2% during bonding
BONDING_TARGET  100 SOL (Flame) / 200 SOL (Torch)
PROTOCOL_FEE    0.5% on buys
TREASURY_RATE   17.5% → 2.5% (dynamic decay)
TRANSFER_FEE    0.07% (post-migration, immutable)
MAX_LTV         25-50% (depth-adaptive: 25% <50 SOL, 35% 50-200, 45% 200-500, 50% 500+)
LIQ_THRESHOLD   65%
INTEREST        2% per epoch (~7 days)
LIQ_BONUS       10%
UTIL_CAP        80%
BORROW_CAP      23x collateral share of supply
MIN_POOL_SOL    5 SOL (below this: all margin ops blocked)
MIN_BORROW      0.1 SOL
PROGRAM_ID      8hbUkonssSEEtkqzwM7ZcZrD9evacM92TcWSooVF4BeT

SDK

GET QUOTE → BUILD TX → SIGN & SEND

One flow, any token state. The SDK auto-routes bonding curve or Raydium DEX based on the quote's source field.

import { getBuyQuote, buildBuyTransaction } from "torchsdk";

const quote = await getBuyQuote(connection, mint, 100_000_000); // 0.1 SOL
const { transaction } = await buildBuyTransaction(connection, {
  mint, buyer: wallet, amount_sol: 100_000_000,
  slippage_bps: 500, vault: vaultCreator, quote,
});
// sign and send — VersionedTransaction, ALT-compressed

Queries

| Function | Returns | |----------|---------| | getTokens(connection, params?) | Token list (filterable, sortable) | | getToken(connection, mint) | Full detail: price, treasury, status | | getTokenMetadata(connection, mint) | On-chain Token-2022 metadata | | getHolders(connection, mint) | Top holders with balance/percentage | | getMessages(connection, mint, limit?, opts?) | On-chain memos. { enrich: true } adds SAID | | getLendingInfo(connection, mint) | Lending parameters and pool state | | getLoanPosition(connection, mint, wallet) | Loan: collateral, debt, LTV, health | | getAllLoanPositions(connection, mint) | All loans sorted by liquidation risk | | getShortPosition(connection, mint, wallet) | Short: collateral, debt, LTV, health | | getBuyQuote(connection, mint, sol) | Tokens out, fees, impact. source: bonding\|dex | | getSellQuote(connection, mint, tokens) | SOL out, impact. source: bonding\|dex | | getBorrowQuote(connection, mint, collateral) | Max borrow: LTV, pool, per-user caps | | getVault(connection, creator) | Vault state | | getVaultForWallet(connection, wallet) | Reverse vault lookup | | getUserStats(connection, wallet) | Per-user trading volume + rewards-claimed history | | getProtocolTreasuryState(connection) | Protocol treasury: epoch, aggregate volume, distributable amount | | getTreasuryState(connection, mint) | Per-token treasury: SOL balance, tokens held, baseline pool reserves at migration, stars |

Trading

| Function | Description | |----------|-------------| | buildBuyTransaction | Buy via vault. Auto-routes bonding/DEX | | buildDirectBuyTransaction | Buy without vault (human wallets) | | sendBuy | Build + simulate + submit vault buy via signAndSendTransaction | | sendDirectBuy | Build + simulate + submit direct buy via signAndSendTransaction | | buildSellTransaction | Sell via vault. Auto-routes bonding/DEX | | buildCreateTokenTransaction | Launch token + treasury + 300M lock | | sendCreateToken | Build + simulate + submit token creation (Phantom-friendly) | | buildStarTransaction | Star token (0.02 SOL) | | buildMigrateTransaction | Migrate to Raydium (permissionless) |

Margin (post-migration)

| Function | Description | |----------|-------------| | buildBorrowTransaction | Borrow SOL against token collateral | | buildRepayTransaction | Repay debt, unlock collateral | | buildLiquidateTransaction | Liquidate loan (>65% LTV) | | buildOpenShortTransaction | Post SOL, borrow tokens from treasury lock | | buildCloseShortTransaction | Return tokens, recover SOL collateral | | buildLiquidateShortTransaction | Liquidate short (>65% LTV) | | buildClaimProtocolRewardsTransaction | Claim epoch trading rewards |

Vault

| Function | Signer | |----------|--------| | buildCreateVaultTransaction | creator | | buildDepositVaultTransaction | anyone | | buildWithdrawVaultTransaction | authority | | buildWithdrawTokensTransaction | authority | | buildLinkWalletTransaction | authority | | buildUnlinkWalletTransaction | authority | | buildTransferAuthorityTransaction | authority |

Treasury Cranks (permissionless)

| Function | Description | |----------|-------------| | buildHarvestFeesTransaction | Harvest 0.07% transfer fees to treasury | | buildSwapFeesToSolTransaction | Swap harvested tokens to SOL via Raydium | | buildAdvanceProtocolEpochTransaction | Advance protocol epoch so previous-epoch rewards become claimable | | buildReclaimFailedTokenTransaction | Reclaim inactive tokens (7+ days) |

Vault — Why Funds Are Safe

Human (authority)                   Agent (controller, ~0.01 SOL gas)
  ├── createVault()                  ├── buy(vault)       → vault pays
  ├── depositVault(5 SOL)            ├── sell(vault)      → SOL to vault
  ├── linkWallet(agent)              ├── borrow(vault)    → SOL to vault
  ├── withdrawVault()  ← auth only   ├── repay(vault)     → collateral back
  └── unlinkWallet()   ← instant     ├── openShort(vault) → tokens to vault
                                     └── closeShort(vault)→ SOL to vault

| Guarantee | Mechanism | |-----------|-----------| | Full custody | Vault holds all SOL and tokens. Controller holds nothing. | | Closed loop | Every operation returns value to vault. No leakage. | | Authority separation | Creator (immutable) / Authority (transferable) / Controller (disposable) | | Instant revocation | Authority unlinks controller in one tx | | No extraction | Controllers cannot withdraw. Period. | | Isolated positions | One loan per user per token. One short per user per token. No cascading. | | Immutable parameters | LTV, liquidation, interest — set at deployment. No admin key changes them. |

Key Safety

If SOLANA_PRIVATE_KEY is provided: must be a fresh disposable keypair (~0.01 SOL gas). All capital lives in vault. If compromised: attacker gets dust, authority revokes in one tx. Key never leaves the runtime.

If not provided: read-only mode — queries state, returns unsigned transactions.

Rules:

Never ask for a private key or seed phrase.
Never log, print, store, or transmit key material.
Use a secure HTTPS RPC endpoint.

Risk

Positions can be liquidated. Bad debt is possible in extreme conditions. There is no insurance fund. But:

Bad debt is isolated — one position going underwater cannot affect any other position
Per-user caps prevent pool concentration — one user cannot drain the lending pool
20% of treasury SOL is always reserved (utilization cap)
Liquidation is permissionless — no keeper dependency

Verification

71 Kani proof harnesses. 97 litesvm tests. 62 SDK e2e tests. All passing. Cross-validated by independent audit. Core arithmetic and depth-band boundaries formally verified. See VERIFICATION.md and risk.md.

Torch Market