Magpie Protocol

Magpie is a memecoin-collateralized lending protocol on Solana, delivered entirely through a Telegram bot. Users pledge memecoin holdings as collateral and receive SOL loans in seconds — no browser extensions, no seed phrases, no new apps to install.

The protocol is designed around three principles: speed (loans fund in under 10 seconds), simplicity (one flat fee, three tiers, no hidden mechanics), and safety (non-custodial, loan-scoped collateral, on-chain liquidation).

Magpie's core lending logic lives in an Anchor program deployed on Solana mainnet. The program is the single source of truth for loan state, collateral custody, and liquidation execution.

Program Derived Addresses

Each loan creates a unique PDA (Program Derived Address) seeded by the borrower's public key and a loan nonce. The PDA holds all loan state on-chain:

// Loan PDA fields
{
  borrower:          Pubkey,
  collateral_mint:   Pubkey,
  collateral_amount: u64,
  borrowed_sol:      u64,
  due_date:          i64,
  ltv_tier:          u8,       // 0=Express, 1=Quick, 2=Standard
  health_ratio:      f64,
  status:            LoanStatus,  // Active | Repaid | Liquidated
}

Collateral custody

Collateral is held in loan-scoped token accounts owned by the program PDA — not the user's wallet. This means only the pledged collateral is ever at risk. The user's other holdings are untouchable by the protocol.

Liquidation

Liquidation is deterministic and on-chain. When a loan's health ratio drops below the 1.1x threshold, anyone can call the liquidation instruction. There is no admin override, no manual intervention — the logic is enforced by the program.

A typical loan moves through the following stages, all orchestrated from a Telegram chat.

Accurate, manipulation-resistant pricing is critical for a lending protocol. Magpie uses aggregated DEX liquidity via Jupiter's Price API v2 as the primary oracle.

Why Jupiter?

Jupiter aggregates liquidity across all major Solana DEXes (Raydium, Orca, Meteora, etc.). This makes price manipulation economically infeasible — an attacker would need to move prices across multiple venues simultaneously.

Price usage

• Loan origination: collateral valued in SOL to determine payout
• Health monitoring: continuous repricing to detect undercollateralization
• Liquidation triggers: when health ratio breaches 1.1x threshold

Magpie uses a simple, transparent fee model. No dynamic APR, no variable haircuts, no hidden charges.

The Magpie Credit Score is an on-platform reputation system that rewards consistent borrowing behavior with better terms. Scores range from 300 to 850 and update after every loan event (repayment, extension, liquidation).

Scoring factors

Credit tiers

Security is a core design constraint, not a feature bolted on after the fact. Every layer of the stack is built to minimize trust assumptions.

Magpie generates and manages Solana keypairs for users who interact through Telegram. The model prioritizes portability and user sovereignty.

Key lifecycle

/start  → Fresh Ed25519 keypair generated
        → Private key encrypted with AES-256-GCM
        → Encrypted blob stored in database
        → Public key returned to user as deposit address

/export → Private key decrypted in memory
        → Sent to user via Telegram (ephemeral message)
        → Auto-deleted after 60 seconds
        → User can import into Phantom, Solflare, etc.

Deposit addresses

Each loan gets its own deposit address. This is a program-derived token account scoped to the loan PDA. Collateral sent to one loan's address cannot be accessed by another loan or by Magpie directly.

Magpie currently supports 64+ Solana memecoins as loan collateral. Tokens are approved based on DEX liquidity depth, trading volume, and price stability requirements.

Approval criteria

• Sufficient DEX liquidity across at least two venues
• Consistent 24h trading volume above minimum threshold
• Price available via Jupiter Price API v2
• No evidence of rug-pull risk or contract vulnerabilities

Magpie integrates several external services and frameworks to deliver the lending experience.

Transaction flow

User (Telegram)
  │
  ├─ /borrow → Bot validates input
  │              → Jupiter API: fetch price
  │              → Anchor: create loan PDA + transfer collateral
  │              → Solana Web3.js: disburse SOL
  │              → Telegram: send confirmation
  │
  ├─ /repay  → Anchor: close loan PDA + return collateral
  │              → Telegram: send receipt
  │
  └─ Health monitor (background)
       → Jupiter API: reprice collateral
       → If health < 1.1x → Anchor: liquidate
       → Telegram: alert user