Torch Market

Every token is its own margin market. Depth-adaptive risk engine, treasury-backed lending, real-token short selling. No oracles. No stored baselines. No keepers. The pool is the source of truth.

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

text

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

text

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

text

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.

typescript

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

text

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:

1. Never ask for a private key or seed phrase.
2. Never log, print, store, or transmit key material.
3. 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.

Links

• torch.market | Whitepaper | Risk Model
• SDK: lib/torchsdk/ | npm | source
• Program: 8hbUkonssSEEtkqzwM7ZcZrD9evacM92TcWSooVF4BeT