How to integrate Skyfire MCP with Pydantic AI

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Skyfire Logo
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Introduction

This guide walks you through connecting Skyfire to Pydantic AI using the Composio tool router. By the end, you'll have a working Skyfire agent that can check my skyfire wallet balance now, issue a pay token for $10 to buy service, list all ai services available for purchase, audit charges made against my last token through natural language commands.

This guide will help you understand how to give your Pydantic AI agent real control over a Skyfire account through Composio's Skyfire MCP server.

Before we dive in, let's take a quick look at the key ideas and tools involved.

TL;DR

Here's what you'll learn:
  • How to set up your Composio API key and User ID
  • How to create a Composio Tool Router session for Skyfire
  • How to attach an MCP Server to a Pydantic AI agent
  • How to stream responses and maintain chat history
  • How to build a simple REPL-style chat interface to test your Skyfire workflows

What is Pydantic AI?

Pydantic AI is a Python framework for building AI agents with strong typing and validation. It leverages Pydantic's data validation capabilities to create robust, type-safe AI applications.

Key features include:

  • Type Safety: Built on Pydantic for automatic data validation
  • MCP Support: Native support for Model Context Protocol servers
  • Streaming: Built-in support for streaming responses
  • Async First: Designed for async/await patterns

What is the Skyfire MCP server, and what's possible with it?

The Skyfire MCP server is an implementation of the Model Context Protocol that connects your AI agent and assistants like Claude, Cursor, etc directly to your Skyfire account. It provides structured and secure access to your autonomous payment and transaction infrastructure, so your agent can create tokens, pay for services, check balances, audit charges, and discover available AI-powered services on your behalf.

  • Autonomous service payments: Let your agent issue payment tokens and seamlessly pay for AI services or digital goods without manual intervention.
  • Wallet balance and charge auditing: Have your agent check buyer wallet balances before transactions and audit token charges to track exactly what was spent and when.
  • Discovery of AI and digital services: Enable your agent to browse, filter, and retrieve detailed info about available services using tags or seller agents, streamlining selection and integration.
  • Token management and automation: Allow your agent to create, manage, and charge Skyfire tokens (KYA, PAY, KYA+PAY), handling sophisticated payment flows programmatically.
  • Service details and compliance checks: Instruct your agent to fetch detailed service terms, API specs, and integration URLs—helping ensure compliance and smooth onboarding before making purchases.

Supported Tools & Triggers

Tools
Charge Skyfire TokenCharge a buyer's token (seller-side operation).
Create Skyfire KYA+PAY TokenIssue a skyfire kya+pay token (post /api/v1/tokens with type=kya+pay).
Create Skyfire KYA TokenIssue a skyfire kya token (post /api/v1/tokens with type=kya).
Create Skyfire PAY TokenIssue a skyfire pay token (post /api/v1/tokens with type=pay).
Get All Skyfire Service TagsFetch all service tags to discover filtering options.
Get Skyfire Buyer Wallet BalanceRetrieve buyer wallet balance.
Get Skyfire Service DetailsGet full details for one service.
Get Skyfire Services by AgentBrowse all services from one seller agent.
Get Skyfire Services by TagsFilter services by tags to find exactly what you need.
Get Skyfire Token ChargesAudit charges for a specific token.
Introspect Skyfire TokenCheck if a token is still valid before calling a seller service.
List Skyfire Buyer TokensInspect buyer tokens for observability.
List Skyfire Directory ServicesBrowse skyfire's service directory to obtain `sellerserviceid` for token creation.

What is the Composio tool router, and how does it fit here?

What is Tool Router?

Composio's Tool Router helps agents find the right tools for a task at runtime. You can plug in multiple toolkits (like Gmail, HubSpot, and GitHub), and the agent will identify the relevant app and action to complete multi-step workflows. This can reduce token usage and improve the reliability of tool calls. Read more here: Getting started with Tool Router

The tool router generates a secure MCP URL that your agents can access to perform actions.

How the Tool Router works

The Tool Router follows a three-phase workflow:

  1. Discovery: Searches for tools matching your task and returns relevant toolkits with their details.
  2. Authentication: Checks for active connections. If missing, creates an auth config and returns a connection URL via Auth Link.
  3. Execution: Executes the action using the authenticated connection.

Step-by-step Guide

Prerequisites

Before starting, make sure you have:
  • Python 3.9 or higher
  • A Composio account with an active API key
  • Basic familiarity with Python and async programming

Getting API Keys for OpenAI and Composio

OpenAI API Key
  • Go to the OpenAI dashboard and create an API key. You'll need credits to use the models, or you can connect to another model provider.
  • Keep the API key safe.
Composio API Key
  • Log in to the Composio dashboard.
  • Navigate to your API settings and generate a new API key.
  • Store this key securely as you'll need it for authentication.

Install dependencies

bash
pip install composio pydantic-ai python-dotenv

Install the required libraries.

What's happening:

  • composio connects your agent to external SaaS tools like Skyfire
  • pydantic-ai lets you create structured AI agents with tool support
  • python-dotenv loads your environment variables securely from a .env file

Set up environment variables

bash
COMPOSIO_API_KEY=your_composio_api_key_here
USER_ID=your_user_id_here
OPENAI_API_KEY=your_openai_api_key

Create a .env file in your project root.

What's happening:

  • COMPOSIO_API_KEY authenticates your agent to Composio's API
  • USER_ID associates your session with your account for secure tool access
  • OPENAI_API_KEY to access OpenAI LLMs

Import dependencies

python
import asyncio
import os
from dotenv import load_dotenv
from composio import Composio
from pydantic_ai import Agent
from pydantic_ai.mcp import MCPServerStreamableHTTP

load_dotenv()
What's happening:
  • We load environment variables and import required modules
  • Composio manages connections to Skyfire
  • MCPServerStreamableHTTP connects to the Skyfire MCP server endpoint
  • Agent from Pydantic AI lets you define and run the AI assistant

Create a Tool Router Session

python
async def main():
    api_key = os.getenv("COMPOSIO_API_KEY")
    user_id = os.getenv("USER_ID")
    if not api_key or not user_id:
        raise RuntimeError("Set COMPOSIO_API_KEY and USER_ID in your environment")

    # Create a Composio Tool Router session for Skyfire
    composio = Composio(api_key=api_key)
    session = composio.create(
        user_id=user_id,
        toolkits=["skyfire"],
    )
    url = session.mcp.url
    if not url:
        raise ValueError("Composio session did not return an MCP URL")
What's happening:
  • We're creating a Tool Router session that gives your agent access to Skyfire tools
  • The create method takes the user ID and specifies which toolkits should be available
  • The returned session.mcp.url is the MCP server URL that your agent will use

Initialize the Pydantic AI Agent

python
# Attach the MCP server to a Pydantic AI Agent
skyfire_mcp = MCPServerStreamableHTTP(url, headers={"x-api-key": COMPOSIO_API_KEY})
agent = Agent(
    "openai:gpt-5",
    toolsets=[skyfire_mcp],
    instructions=(
        "You are a Skyfire assistant. Use Skyfire tools to help users "
        "with their requests. Ask clarifying questions when needed."
    ),
)
What's happening:
  • The MCP client connects to the Skyfire endpoint
  • The agent uses GPT-5 to interpret user commands and perform Skyfire operations
  • The instructions field defines the agent's role and behavior

Build the chat interface

python
# Simple REPL with message history
history = []
print("Chat started! Type 'exit' or 'quit' to end.\n")
print("Try asking the agent to help you with Skyfire.\n")

while True:
    user_input = input("You: ").strip()
    if user_input.lower() in {"exit", "quit", "bye"}:
        print("\nGoodbye!")
        break
    if not user_input:
        continue

    print("\nAgent is thinking...\n", flush=True)

    async with agent.run_stream(user_input, message_history=history) as stream_result:
        collected_text = ""
        async for chunk in stream_result.stream_output():
            text_piece = None
            if isinstance(chunk, str):
                text_piece = chunk
            elif hasattr(chunk, "delta") and isinstance(chunk.delta, str):
                text_piece = chunk.delta
            elif hasattr(chunk, "text"):
                text_piece = chunk.text
            if text_piece:
                collected_text += text_piece
        result = stream_result

    print(f"Agent: {collected_text}\n")
    history = result.all_messages()
What's happening:
  • The agent reads input from the terminal and streams its response
  • Skyfire API calls happen automatically under the hood
  • The model keeps conversation history to maintain context across turns

Run the application

python
if __name__ == "__main__":
    asyncio.run(main())
What's happening:
  • The asyncio loop launches the agent and keeps it running until you exit

Complete Code

Here's the complete code to get you started with Skyfire and Pydantic AI:

python
import asyncio
import os
from dotenv import load_dotenv
from composio import Composio
from pydantic_ai import Agent
from pydantic_ai.mcp import MCPServerStreamableHTTP

load_dotenv()

async def main():
    api_key = os.getenv("COMPOSIO_API_KEY")
    user_id = os.getenv("USER_ID")
    if not api_key or not user_id:
        raise RuntimeError("Set COMPOSIO_API_KEY and USER_ID in your environment")

    # Create a Composio Tool Router session for Skyfire
    composio = Composio(api_key=api_key)
    session = composio.create(
        user_id=user_id,
        toolkits=["skyfire"],
    )
    url = session.mcp.url
    if not url:
        raise ValueError("Composio session did not return an MCP URL")

    # Attach the MCP server to a Pydantic AI Agent
    skyfire_mcp = MCPServerStreamableHTTP(url, headers={"x-api-key": COMPOSIO_API_KEY})
    agent = Agent(
        "openai:gpt-5",
        toolsets=[skyfire_mcp],
        instructions=(
            "You are a Skyfire assistant. Use Skyfire tools to help users "
            "with their requests. Ask clarifying questions when needed."
        ),
    )

    # Simple REPL with message history
    history = []
    print("Chat started! Type 'exit' or 'quit' to end.\n")
    print("Try asking the agent to help you with Skyfire.\n")

    while True:
        user_input = input("You: ").strip()
        if user_input.lower() in {"exit", "quit", "bye"}:
            print("\nGoodbye!")
            break
        if not user_input:
            continue

        print("\nAgent is thinking...\n", flush=True)

        async with agent.run_stream(user_input, message_history=history) as stream_result:
            collected_text = ""
            async for chunk in stream_result.stream_output():
                text_piece = None
                if isinstance(chunk, str):
                    text_piece = chunk
                elif hasattr(chunk, "delta") and isinstance(chunk.delta, str):
                    text_piece = chunk.delta
                elif hasattr(chunk, "text"):
                    text_piece = chunk.text
                if text_piece:
                    collected_text += text_piece
            result = stream_result

        print(f"Agent: {collected_text}\n")
        history = result.all_messages()

if __name__ == "__main__":
    asyncio.run(main())

Conclusion

You've built a Pydantic AI agent that can interact with Skyfire through Composio's Tool Router. With this setup, your agent can perform real Skyfire actions through natural language. You can extend this further by:
  • Adding other toolkits like Gmail, HubSpot, or Salesforce
  • Building a web-based chat interface around this agent
  • Using multiple MCP endpoints to enable cross-app workflows (for example, Gmail + Skyfire for workflow automation)
This architecture makes your AI agent "agent-native", able to securely use APIs in a unified, composable way without custom integrations.

How to build Skyfire MCP Agent with another framework

FAQ

What are the differences in Tool Router MCP and Skyfire MCP?

With a standalone Skyfire MCP server, the agents and LLMs can only access a fixed set of Skyfire tools tied to that server. However, with the Composio Tool Router, agents can dynamically load tools from Skyfire and many other apps based on the task at hand, all through a single MCP endpoint.

Can I use Tool Router MCP with Pydantic AI?

Yes, you can. Pydantic AI fully supports MCP integration. You get structured tool calling, message history handling, and model orchestration while Tool Router takes care of discovering and serving the right Skyfire tools.

Can I manage the permissions and scopes for Skyfire while using Tool Router?

Yes, absolutely. You can configure which Skyfire scopes and actions are allowed when connecting your account to Composio. You can also bring your own OAuth credentials or API configuration so you keep full control over what the agent can do.

How safe is my data with Composio Tool Router?

All sensitive data such as tokens, keys, and configuration is fully encrypted at rest and in transit. Composio is SOC 2 Type 2 compliant and follows strict security practices so your Skyfire data and credentials are handled as safely as possible.

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ASU
Letta
glean
HubSpot
Agent.ai
Altera
DataStax
Entelligence
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Context
ASU
Letta
glean
HubSpot
Agent.ai
Altera
DataStax
Entelligence
Rolai

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