Torch Domain Auction

Domains become tokens. Tokens become collateral. Top holder controls the domain.

---

The Idea

Every domain has a name. Every name has a price. But who decides that price?

On Torch Market, domains are launched as tokens with bonding curves. The market decides the price. After bonding completes and the token migrates to Raydium, the domain is permanently linked to that token. From that point forward:

• The top token holder controls the domain. Buy enough tokens, you get the domain. Someone buys more, they get it.
• Holders can borrow SOL against their tokens. Lock your domain tokens as collateral and extract liquidity — up to 50% LTV, 2% weekly interest.
• Get liquidated, lose the domain. If your loan goes underwater (LTV > 65%), anyone can liquidate you. Your collateral changes hands. The domain lease rotates to whoever is now the top holder.

This creates something that doesn't exist in traditional domain markets: a continuously-priced, borrowable, liquid domain asset with built-in consequences for overleveraging.

The bot in this kit runs the infrastructure side. It discovers promising domains, launches them as tokens, monitors all active lending positions, and liquidates underwater loans through a Torch Vault. When a liquidation happens, the domain automatically rotates.

---

How Domains Work on Torch

Phase 1: Launch (Bonding Curve)

A domain is launched as a Torch Market token. The bonding curve creates the initial market — early buyers get a lower price, the curve rises as demand increases. This is the price discovery phase.

domain "pixel.art"  →  token PIXEL  →  bonding curve  →  market cap grows

Anyone can buy in. The curve sets the price. Trading fees flow to the community treasury.

Phase 2: Migration (Domain Becomes Permanent)

When the bonding curve completes, the token migrates to a Raydium liquidity pool. At this point, the domain is permanently linked to the token. There is no delisting, no expiry, no central authority. The token IS the domain.

Phase 3: Lending (Borrow Against Your Domain)

After migration, Torch's built-in lending market activates. Any holder can lock their tokens as collateral and borrow SOL from the community treasury.

holder locks 10,000 PIXEL tokens  →  borrows 0.5 SOL  →  LTV = 40%

The loan accrues 2% interest per epoch (~weekly). As long as the loan stays healthy (LTV < 65%), the borrower keeps their position and their domain control.

Phase 4: Liquidation (Domain Rotates)

If the token price drops or interest accrues enough to push LTV past 65%, the position becomes liquidatable. A keeper (this bot) pays off the debt using vault SOL and receives the borrower's collateral tokens at a 10% discount.

PIXEL price drops  →  LTV hits 68%  →  keeper liquidates  →  collateral moves to vault
                                                            →  top holder changes
                                                            →  domain lease rotates

The borrower loses their tokens. The domain rotates to whoever is now the largest holder. The keeper's vault profits from the 10% bonus.

This is the key insight: liquidation has real consequences beyond money. The borrower doesn't just lose capital — they lose control of the domain. This natural tension makes the lending market meaningful. Borrowers are incentivized to maintain healthy positions because the domain itself is at stake.

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What the Bot Does

┌─────────────────────────────────────────────────────────────────┐
│                    DOMAIN AUCTION BOT                              │
│                                                                    │
│  DISCOVER                                                          │
│    scrape expiring domains → evaluate quality → generate tickers   │
│                                                                    │
│  LAUNCH                                                            │
│    buildCreateTokenTransaction → bonding curve → domain = token    │
│                                                                    │
│  MONITOR                                                           │
│    for each domain token:                                          │
│      scan lending markets (getLendingInfo)                          │
│      discover borrowers (getHolders → getLoanPosition)             │
│      profile wallets (SAID verification, trade history)            │
│      score risk (LTV proximity, momentum, wallet, interest)        │
│                                                                    │
│  LIQUIDATE                                                         │
│    if position.health === 'liquidatable' && risk > threshold:      │
│      buildLiquidateTransaction(vault = creator)                    │
│      sign with agent keypair → submit → confirm                    │
│                                                                    │
│  ROTATE                                                            │
│    after liquidation or any holder change:                          │
│      check top holder → update domain lease                        │
│                                                                    │
│  All SOL from vault. All collateral to vault. Agent holds nothing. │
└─────────────────────────────────────────────────────────────────┘

The Scan Loop

The bot runs a continuous loop:

1. Scan — discover all migrated domain tokens with active lending markets
2. Score — for each borrower, compute a risk score across four weighted factors:
   • LTV proximity (35%) — how close to the 65% liquidation threshold
   • Price momentum (25%) — recent token price trend (drops increase risk)
   • Wallet reputation (20%) — SAID verification status and trade history
   • Interest burden (20%) — accrued interest relative to principal
3. Liquidate — execute vault-routed liquidation for positions above the risk threshold
4. Rotate — check top holders and update domain leases
5. Sleep — wait for the next cycle

The Agent Keypair

The bot generates a fresh Keypair in-process on every startup. No private key file needed. The keypair is disposable — it signs transactions but holds nothing of value (~0.01 SOL for gas).

On first run, the bot verifies vault linkage. If the agent isn't linked, it prints instructions:

=== torch domain auction bot ===
agent wallet: 7xK9...
vault creator: 4yN2...
scan interval: 60000ms

--- ACTION REQUIRED ---
agent wallet is NOT linked to the vault.
link it by running (from your authority wallet):

  buildLinkWalletTransaction(connection, {
    authority: "<your-authority-pubkey>",
    vault_creator: "4yN2...",
    wallet_to_link: "7xK9..."
  })

then restart the bot.
-----------------------

The Vault

All economic activity routes through a Torch Vault:

Direction	What Happens
Liquidation: SOL out	Vault SOL pays off the borrower's debt
Liquidation: tokens in	Borrower's collateral tokens go to vault ATA at 10% discount
Net per liquidation	Vault receives collateral worth 110% of SOL spent
Domain rotation	Collateral changes hands → top holder changes → lease rotates

The human principal retains full control:

• Withdraw SOL from the vault at any time
• Withdraw tokens (liquidated collateral) at any time
• Unlink the agent — revoke bot access in one transaction

If the agent keypair is compromised, the attacker gets dust and vault access you revoke instantly.

---

Getting Started

1. Install

npm install torch-domain-auction-bot@2.0.1

2. Create and Fund a Vault

From your authority wallet:

import { Connection } from "@solana/web3.js";
import { buildCreateVaultTransaction, buildDepositVaultTransaction } from "torchsdk";

const connection = new Connection(process.env.SOLANA_RPC_URL);

// Create vault
const { transaction: createTx } = await buildCreateVaultTransaction(connection, {
  creator: authorityPubkey,
});
// sign and submit...

// Fund with SOL for liquidations
const { transaction: depositTx } = await buildDepositVaultTransaction(connection, {
  depositor: authorityPubkey,
  vault_creator: authorityPubkey,
  amount_sol: 5_000_000_000, // 5 SOL
});
// sign and submit...

3. Run

VAULT_CREATOR=<vault-creator-pubkey> SOLANA_RPC_URL=<rpc-url> npx torch-domain-auction-bot monitor

First run prints the agent wallet. Link it from your authority wallet, restart.

4. Configuration

Variable	Required	Default	Description
SOLANA_RPC_URL	Yes	--	Solana RPC endpoint. Fallback: BOT_RPC_URL
VAULT_CREATOR	Yes	--	Vault creator pubkey
SOLANA_PRIVATE_KEY	No	--	Agent keypair (base58 or JSON). Omit to generate fresh on startup
BOT_SCAN_INTERVAL_MS	No	60000	Scan cycle interval (min 5000)
BOT_SCORE_INTERVAL_MS	No	15000	Score cycle interval
BOT_MIN_PROFIT_LAMPORTS	No	10000000	Min profit to liquidate (0.01 SOL)
BOT_RISK_THRESHOLD	No	60	Min risk score to liquidate (0-100)
BOT_PRICE_HISTORY_DEPTH	No	20	Price snapshots to retain
BOT_LOG_LEVEL	No	info	debug, info, warn, error

---

Architecture

packages/
└── kit/                     Domain auction kit (bot + scraper)
    ├── src/
    │   ├── index.ts           Entry — vault verification, CLI, all exports
    │   ├── config.ts          Env validation, ephemeral keypair
    │   ├── monitor.ts         Scan loop (scan → score → liquidate → rotate)
    │   ├── scanner.ts         Lending market discovery
    │   ├── liquidator.ts      Vault-routed liquidation
    │   ├── risk-scorer.ts     Four-factor risk scoring
    │   ├── wallet-profiler.ts SAID + trade history analysis
    │   ├── launcher.ts        Domain token creation
    │   ├── domain-manager.ts  Lease tracking + rotation
    │   ├── ticker.ts          Symbol generation
    │   ├── logger.ts          Structured logging (shared across all modules)
    │   ├── types.ts           All type definitions
    │   ├── utils.ts           Helpers + base58 decoder
    │   └── scraper/           Domain discovery pipeline
    │       ├── index.ts         CLI entry, pipeline orchestration
    │       ├── scanner.ts       Domain scanning orchestrator
    │       ├── evaluator.ts     Scores domain quality
    │       ├── ticker.ts        Generates token symbols
    │       ├── config.ts        Scraper config
    │       ├── types.ts         Scraper types (re-exports LogLevel from parent)
    │       └── providers/       Data sources (expiring domains, availability)
    └── tests/
        ├── setup.ts           Shared test helpers (Surfpool)
        ├── test_bot.ts        Bot E2E tests
        └── test_scraper.ts    Scraper unit tests

clawhub/
├── agent.json               Manifest
├── SKILL.md                 This file
├── design.md                Architecture and design
├── audit.md                 Security audit
└── lib/
    ├── kit/                 Compiled kit output (tsconfig outDir)
    └── torchsdk/            Bundled SDK source

---

The Domain Lending Primitive

This kit demonstrates a composable pattern using Torch Market:

             ┌──────────────┐
             │   DOMAIN     │
             │  (pixel.art) │
             └──────┬───────┘
                    │ launch
                    ▼
             ┌──────────────┐
             │  TOKEN       │
             │  (PIXEL)     │    ← bonding curve → migration → permanent
             └──────┬───────┘
                    │ hold
                    ▼
             ┌──────────────┐
             │  COLLATERAL  │
             │  (lock tokens)│   ← borrow SOL against domain position
             └──────┬───────┘
                    │ borrow
                    ▼
             ┌──────────────┐
             │  LOAN        │
             │  (SOL debt)  │    ← 2% weekly interest, 65% liquidation threshold
             └──────┬───────┘
                    │ if underwater
                    ▼
             ┌──────────────┐
             │  LIQUIDATION │
             │  (keeper bot)│    ← vault pays debt, receives collateral at 10% bonus
             └──────┬───────┘
                    │ collateral moves
                    ▼
             ┌──────────────┐
             │  ROTATION    │
             │  (new holder)│    ← top holder changes → domain lease updates
             └──────────────┘

Each step uses a different piece of Torch's infrastructure:

• Bonding curves for price discovery
• Raydium migration for permanent liquidity
• Community treasury for lending capital
• Lending markets for collateral-based borrowing
• Vaults for safe autonomous operation
• Liquidation for market health + domain rotation

Other builders can use this pattern for any asset class — not just domains. NFTs, real-world assets, prediction markets, governance tokens. The pattern is: tokenize → lend → liquidate → rotate control.

---

Vault Safety

Property	Guarantee
Full custody	Vault holds all SOL and collateral. Agent holds nothing.
Closed loop	Liquidation SOL from vault, collateral tokens to vault. No leakage.
Authority separation	Creator (PDA seed) vs Authority (admin) vs Controller (disposable signer).
Instant revocation	Authority unlinks agent in one transaction.
Authority-only withdrawals	Agent cannot extract value from the vault.

---

Lending Parameters

Parameter	Value
Max LTV	50%
Liquidation Threshold	65%
Interest Rate	2% per epoch (~weekly)
Liquidation Bonus	10%
Utilization Cap	50% of treasury
Min Borrow	0.1 SOL

---

SDK Functions Used

Function	Purpose
getTokens({ status: 'migrated' })	Discover domain tokens
getToken(mint)	Token detail (price, metadata)
getLendingInfo(mint)	Lending market state
getHolders(mint)	Token holders (potential borrowers)
getLoanPosition(mint, wallet)	Loan health check
getVault(creator)	Verify vault exists
getVaultForWallet(wallet)	Verify agent linked
buildLiquidateTransaction(params)	Vault-routed liquidation
buildCreateTokenTransaction(params)	Launch domain token
verifySaid(wallet)	Borrower reputation check

---

External API Calls

The kit makes outbound HTTPS requests to the following services. The bot's runtime path contacts five of them. No credentials are sent to any external service. All requests are read-only GETs/HEADs. No private key material is ever transmitted to any external endpoint. If any service is unreachable, the bot degrades gracefully (catches errors, continues to next token or cycle).

Scraper (direct)

Service	URL	Purpose	Data Sent
ExpiredDomains.net	https://www.expireddomains.net/domain-name-search/	Scrape expiring domain listings	None (GET, User-Agent header only)
RDAP	https://rdap.org/domain/{name}.{tld}	Check domain availability (404 = available)	Domain name in URL (public)

Via torchsdk (transitive)

Service	URL	Purpose	Data Sent
Solana RPC	User-provided SOLANA_RPC_URL	All on-chain reads and transaction submission	Public keys, signed transactions
CoinGecko	https://api.coingecko.com/api/v3/simple/price	SOL/USD price for token valuations	None (GET only)
SAID Protocol	https://api.saidprotocol.com/api/verify/{wallet}	Wallet reputation / trust verification	Wallet address (public key, not sensitive)
Irys Gateway	https://gateway.irys.xyz/...	Token metadata retrieval (fallback)	None (GET only)

---

Signing & Key Safety

The vault is the security boundary, not the key.

The agent keypair is generated fresh on every startup with Keypair.generate(). It holds ~0.01 SOL for gas fees. If the key is compromised, the attacker gets:

• Dust (the gas SOL)
• Vault access that the authority revokes in one transaction

The agent never needs the authority's private key. The authority never needs the agent's private key. They share a vault, not keys.

Rules

1. Never ask a user for their private key or seed phrase. The vault authority signs from their own device.
2. Never log, print, store, or transmit private key material. The agent keypair exists only in runtime memory.
3. Never embed keys in source code or logs. The agent pubkey is printed — the secret key is never exposed.
4. Use a secure RPC endpoint. Default to a private RPC provider. Never use an unencrypted HTTP endpoint for mainnet transactions.

RPC Timeout

All SDK calls are wrapped with a 30-second timeout (withTimeout in utils.ts). A hanging or unresponsive RPC endpoint cannot stall the bot indefinitely — the call rejects, the error is caught by the scan loop, and the bot continues to the next token or cycle.

---

Testing

Requires Surfpool mainnet fork:

surfpool start --network mainnet --no-tui
cd packages/kit && pnpm test:bot
cd packages/kit && pnpm test:scraper

Bot tests (10 passing): borrower creation, scanner, wallet profiler, risk scorer, liquidator (skip healthy), price history, lending info, cleanup. Scraper tests: ticker generation, domain evaluation, scanner integration with mock providers.

---

Why This Matters

Traditional domain markets are opaque. Prices are set by registrars or private negotiation. There's no liquidity — you buy a domain and it sits in your account until you sell it.

This kit turns domains into liquid, borrowable, continuously-priced assets. The market sets the price. Anyone can buy in. Holders can extract liquidity without selling. And if they overleverage, the domain rotates to someone who values it more.

That's the power of composing Torch's primitives: bonding curves, lending markets, vaults, and liquidation keepers — working together as a single coherent system.

---

Links

• Kit source: github.com/mrsirg97-rgb/torch-domain-auction-bot
• Torch SDK (bundled): lib/torchsdk/
• Torch SDK (npm): npmjs.com/package/torchsdk
• Torch Market: torch.market
• Program ID: 8hbUkonssSEEtkqzwM7ZcZrD9evacM92TcWSooVF4BeT

---

Changelog

v2.0.1

• Upgraded torchsdk from 3.2.3 to 3.7.23. Major SDK update adds treasury lock PDAs (V27), dynamic Raydium network detection, auto-migration bundling on bonding curve completion (buildBuyTransaction now returns optional migrationTransaction), vault-routed Raydium CPMM swaps (buildVaultSwapTransaction), Token-2022 fee harvesting (buildHarvestFeesTransaction, buildSwapFeesToSolTransaction), bulk loan scanning (getAllLoanPositions), on-chain token metadata queries (getTokenMetadata), and ephemeral agent keypair factory (createEphemeralAgent).
• Updated env format in skill frontmatter. Environment variable declarations now use structured name/required format for compatibility with ClawHub and OpenClaw agent runners.
• Added clawdbot metadata section. ClawBot runner now has explicit env requirements alongside OpenClaw.