How to integrate Paradym MCP with Vercel AI SDK v6

This guide walks you through connecting Paradym to Vercel AI SDK v6 using the Composio tool router. By the end, you'll have a working Paradym agent that can issue sd-jwt verifiable credential for a user, verify authenticity of a presented credential, list all credentials issued to an email address through natural language commands. This guide will help you understand how to give your Vercel AI SDK agent real control over a Paradym account through Composio's Paradym MCP server. Before we dive in, let's take a quick look at the key ideas and tools involved.

Paradym logoParadym
Api Key

Paradym is an API-first platform for issuing, verifying, and managing verifiable credentials. It streamlines credential workflows using standards like SD-JWT VCs and AnonCreds.

69 Tools

Introduction

This guide walks you through connecting Paradym to Vercel AI SDK v6 using the Composio tool router. By the end, you'll have a working Paradym agent that can issue sd-jwt verifiable credential for a user, verify authenticity of a presented credential, list all credentials issued to an email address through natural language commands.

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

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

Also integrate Paradym with

TL;DR

Here's what you'll learn:
  • How to set up and configure a Vercel AI SDK agent with Paradym integration
  • Using Composio's Tool Router to dynamically load and access Paradym tools
  • Creating an MCP client connection using HTTP transport
  • Building an interactive CLI chat interface with conversation history management
  • Handling tool calls and results within the Vercel AI SDK framework

What is Vercel AI SDK?

The Vercel AI SDK is a TypeScript library for building AI-powered applications. It provides tools for creating agents that can use external services and maintain conversation state.

Key features include:

  • streamText: Core function for streaming responses with real-time tool support
  • MCP Client: Built-in support for Model Context Protocol via @ai-sdk/mcp
  • Step Counting: Control multi-step tool execution with stopWhen: stepCountIs()
  • OpenAI Provider: Native integration with OpenAI models

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

The Paradym MCP server is an implementation of the Model Context Protocol that connects your AI agent and assistants like Claude, Cursor, etc directly to your Paradym account. It provides structured and secure access to your verifiable credential workflows, so your agent can perform actions like issuing credentials, verifying identity claims, managing credential lifecycles, and supporting interoperability across digital identity standards.

  • Automated credential issuance: Instruct your agent to issue new verifiable credentials to users or systems, supporting protocols like SD-JWT VCs and AnonCreds.
  • Seamless credential verification: Enable your agent to verify the authenticity and validity of credentials presented by others, streamlining onboarding and trust checks.
  • Credential lifecycle management: Allow your agent to update, revoke, or renew existing credentials, ensuring full control over your digital identity assets.
  • Interoperability with identity standards: Leverage your agent to work across OpenID4VC, DIDComm, and other standards for maximum compatibility and flexibility.
  • Audit and usage tracking: Task your agent to retrieve detailed logs or status reports on credential activity, helping you maintain compliance and visibility.

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

What is Composio SDK?

Composio's Composio SDK 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 Composio SDK

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

How the Composio SDK works

The Composio SDK 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

Step by step09 STEPS
1

Prerequisites

Before you begin, make sure you have:
  • Node.js and npm installed
  • A Composio account with API key
  • An OpenAI API key
2

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.
3

Install required dependencies

bash
npm install @ai-sdk/openai @ai-sdk/mcp @composio/core ai dotenv

First, install the necessary packages for your project.

What you're installing:

  • @ai-sdk/openai: Vercel AI SDK's OpenAI provider
  • @ai-sdk/mcp: MCP client for Vercel AI SDK
  • @composio/core: Composio SDK for tool integration
  • ai: Core Vercel AI SDK
  • dotenv: Environment variable management
4

Set up environment variables

bash
OPENAI_API_KEY=your_openai_api_key_here
COMPOSIO_API_KEY=your_composio_api_key_here
COMPOSIO_USER_ID=your_user_id_here

Create a .env file in your project root.

What's needed:

  • OPENAI_API_KEY: Your OpenAI API key for GPT model access
  • COMPOSIO_API_KEY: Your Composio API key for tool access
  • COMPOSIO_USER_ID: A unique identifier for the user session
5

Import required modules and validate environment

typescript
import "dotenv/config";
import { openai } from "@ai-sdk/openai";
import { Composio } from "@composio/core";
import * as readline from "readline";
import { streamText, type ModelMessage, stepCountIs } from "ai";
import { createMCPClient } from "@ai-sdk/mcp";

const composioAPIKey = process.env.COMPOSIO_API_KEY;
const composioUserID = process.env.COMPOSIO_USER_ID;

if (!process.env.OPENAI_API_KEY) throw new Error("OPENAI_API_KEY is not set");
if (!composioAPIKey) throw new Error("COMPOSIO_API_KEY is not set");
if (!composioUserID) throw new Error("COMPOSIO_USER_ID is not set");

const composio = new Composio({
  apiKey: composioAPIKey,
});
What's happening:
  • We're importing all necessary libraries including Vercel AI SDK's OpenAI provider and Composio
  • The dotenv/config import automatically loads environment variables
  • The MCP client import enables connection to Composio's tool server
6

Create Tool Router session and initialize MCP client

typescript
async function main() {
  // Create a tool router session for the user
  const session = await composio.create(composioUserID!, {
    toolkits: ["paradym"],
  });

  const mcpUrl = session.mcp.url;
What's happening:
  • We're creating a Tool Router session that gives your agent access to Paradym tools
  • The create method takes the user ID and specifies which toolkits should be available
  • The returned mcp object contains the URL and authentication headers needed to connect to the MCP server
  • This session provides access to all Paradym-related tools through the MCP protocol
7

Connect to MCP server and retrieve tools

typescript
const mcpClient = await createMCPClient({
  transport: {
    type: "http",
    url: mcpUrl,
    headers: session.mcp.headers, // Authentication headers for the Composio MCP server
  },
});

const tools = await mcpClient.tools();
What's happening:
  • We're creating an MCP client that connects to our Composio Tool Router session via HTTP
  • The mcp.url provides the endpoint, and mcp.headers contains authentication credentials
  • The type: "http" is important - Composio requires HTTP transport
  • tools() retrieves all available Paradym tools that the agent can use
8

Initialize conversation and CLI interface

typescript
let messages: ModelMessage[] = [];

console.log("Chat started! Type 'exit' or 'quit' to end the conversation.\n");
console.log(
  "Ask any questions related to paradym, like summarize my last 5 emails, send an email, etc... :)))\n",
);

const rl = readline.createInterface({
  input: process.stdin,
  output: process.stdout,
  prompt: "> ",
});

rl.prompt();
What's happening:
  • We initialize an empty messages array to maintain conversation history
  • A readline interface is created to accept user input from the command line
  • Instructions are displayed to guide the user on how to interact with the agent
9

Handle user input and stream responses with real-time tool feedback

typescript
rl.on("line", async (userInput: string) => {
  const trimmedInput = userInput.trim();

  if (["exit", "quit", "bye"].includes(trimmedInput.toLowerCase())) {
    console.log("\nGoodbye!");
    rl.close();
    process.exit(0);
  }

  if (!trimmedInput) {
    rl.prompt();
    return;
  }

  messages.push({ role: "user", content: trimmedInput });
  console.log("\nAgent is thinking...\n");

  try {
    const stream = streamText({
      model: openai("gpt-5"),
      messages,
      tools,
      toolChoice: "auto",
      stopWhen: stepCountIs(10),
      onStepFinish: (step) => {
        for (const toolCall of step.toolCalls) {
          console.log(`[Using tool: ${toolCall.toolName}]`);
          }
          if (step.toolCalls.length > 0) {
            console.log(""); // Add space after tool calls
          }
        },
      });

      for await (const chunk of stream.textStream) {
        process.stdout.write(chunk);
      }

      console.log("\n\n---\n");

      // Get final result for message history
      const response = await stream.response;
      if (response?.messages?.length) {
        messages.push(...response.messages);
      }
    } catch (error) {
      console.error("\nAn error occurred while talking to the agent:");
      console.error(error);
      console.log(
        "\nYou can try again or restart the app if it keeps happening.\n",
      );
    } finally {
      rl.prompt();
    }
  });

  rl.on("close", async () => {
    await mcpClient.close();
    console.log("\n👋 Session ended.");
    process.exit(0);
  });
}

main().catch((err) => {
  console.error("Fatal error:", err);
  process.exit(1);
});
What's happening:
  • We use streamText instead of generateText to stream responses in real-time
  • toolChoice: "auto" allows the model to decide when to use Paradym tools
  • stopWhen: stepCountIs(10) allows up to 10 steps for complex multi-tool operations
  • onStepFinish callback displays which tools are being used in real-time
  • We iterate through the text stream to create a typewriter effect as the agent responds
  • The complete response is added to conversation history to maintain context
  • Errors are caught and displayed with helpful retry suggestions

Complete Code

Here's the complete code to get you started with Paradym and Vercel AI SDK:

typescript
import "dotenv/config";
import { openai } from "@ai-sdk/openai";
import { Composio } from "@composio/core";
import * as readline from "readline";
import { streamText, type ModelMessage, stepCountIs } from "ai";
import { createMCPClient } from "@ai-sdk/mcp";

const composioAPIKey = process.env.COMPOSIO_API_KEY;
const composioUserID = process.env.COMPOSIO_USER_ID;

if (!process.env.OPENAI_API_KEY) throw new Error("OPENAI_API_KEY is not set");
if (!composioAPIKey) throw new Error("COMPOSIO_API_KEY is not set");
if (!composioUserID) throw new Error("COMPOSIO_USER_ID is not set");

const composio = new Composio({
  apiKey: composioAPIKey,
});

async function main() {
  // Create a tool router session for the user
  const session = await composio.create(composioUserID!, {
    toolkits: ["paradym"],
  });

  const mcpUrl = session.mcp.url;

  const mcpClient = await createMCPClient({
    transport: {
      type: "http",
      url: mcpUrl,
      headers: session.mcp.headers, // Authentication headers for the Composio MCP server
    },
  });

  const tools = await mcpClient.tools();

  let messages: ModelMessage[] = [];

  console.log("Chat started! Type 'exit' or 'quit' to end the conversation.\n");
  console.log(
    "Ask any questions related to paradym, like summarize my last 5 emails, send an email, etc... :)))\n",
  );

  const rl = readline.createInterface({
    input: process.stdin,
    output: process.stdout,
    prompt: "> ",
  });

  rl.prompt();

  rl.on("line", async (userInput: string) => {
    const trimmedInput = userInput.trim();

    if (["exit", "quit", "bye"].includes(trimmedInput.toLowerCase())) {
      console.log("\nGoodbye!");
      rl.close();
      process.exit(0);
    }

    if (!trimmedInput) {
      rl.prompt();
      return;
    }

    messages.push({ role: "user", content: trimmedInput });
    console.log("\nAgent is thinking...\n");

    try {
      const stream = streamText({
        model: openai("gpt-5"),
        messages,
        tools,
        toolChoice: "auto",
        stopWhen: stepCountIs(10),
        onStepFinish: (step) => {
          for (const toolCall of step.toolCalls) {
            console.log(`[Using tool: ${toolCall.toolName}]`);
          }
          if (step.toolCalls.length > 0) {
            console.log(""); // Add space after tool calls
          }
        },
      });

      for await (const chunk of stream.textStream) {
        process.stdout.write(chunk);
      }

      console.log("\n\n---\n");

      // Get final result for message history
      const response = await stream.response;
      if (response?.messages?.length) {
        messages.push(...response.messages);
      }
    } catch (error) {
      console.error("\nAn error occurred while talking to the agent:");
      console.error(error);
      console.log(
        "\nYou can try again or restart the app if it keeps happening.\n",
      );
    } finally {
      rl.prompt();
    }
  });

  rl.on("close", async () => {
    await mcpClient.close();
    console.log("\n👋 Session ended.");
    process.exit(0);
  });
}

main().catch((err) => {
  console.error("Fatal error:", err);
  process.exit(1);
});

Conclusion

You've successfully built a Paradym agent using the Vercel AI SDK with streaming capabilities! This implementation provides a powerful foundation for building AI applications with natural language interfaces and real-time feedback.

Key features of this implementation:

  • Real-time streaming responses for a better user experience with typewriter effect
  • Live tool execution feedback showing which tools are being used as the agent works
  • Dynamic tool loading through Composio's Tool Router with secure authentication
  • Multi-step tool execution with configurable step limits (up to 10 steps)
  • Comprehensive error handling for robust agent execution
  • Conversation history maintenance for context-aware responses

You can extend this further by adding custom error handling, implementing specific business logic, or integrating additional Composio toolkits to create multi-app workflows.
TOOLS

Supported Tools

Every Paradym action and event your agent gets out of the box.

Activate Certificate

Tool to activate a certificate for use in a project.

Archive AnonCreds Credential Template

Tool to archive an AnonCreds credential template in a project.

Archive mDoc Credential Template

Tool to archive an mDoc credential template.

Archive Presentation Template

Tool to archive a presentation template in a project.

Archive SD-JWT VC Credential Template

Tool to archive an SD-JWT VC credential template in a project.

Create AnonCreds Credential Template

Tool to create a new AnonCreds credential template.

Create Certificate

Tool to create a new self-signed X.

Create DIDComm Connection Invitation

Tool to create a DIDComm connection invitation.

Create DIDComm Issuance Offer

Tool to create a DIDComm credential issuance offer.

Create OpenID4VC Credential Offer

Tool to create an OpenID4VC credential offer.

Create OpenID4VC Verification Request

Tool to create an OpenID4VC verification request.

Create Presentation Template

Tool to create a new presentation template.

Create Project Webhook

Tool to create a new webhook for a project.

Create SD-JWT VC Credential Template

Tool to create a new SD-JWT VC credential template with selective disclosure capabilities.

Create Trusted Entity

Tool to create a new trusted entity for a project.

Deactivate Certificate

Tool to deactivate a certificate in a project.

Delete DIDComm Connection

Tool to delete a DIDComm connection from a project.

Delete DIDComm Invitation

Tool to delete a DIDComm invitation from a project.

Delete Trusted Entity

Tool to delete a trusted entity from a project.

Delete Project Webhook

Tool to delete a webhook endpoint from a project.

Get AnonCreds Credential Template

Tool to retrieve a specific AnonCreds credential template by ID.

Get AnonCreds Credential Template JSON Schema

Tool to retrieve the JSON schema for an AnonCreds credential template.

Get DIDComm Connection

Tool to retrieve a specific DIDComm connection by ID.

Get DIDComm Connections

Tool to retrieve a list of DIDComm connections for a project.

Get DIDComm Invitation

Tool to retrieve a specific DIDComm invitation by ID.

Get DIDComm Issuance Session

Tool to retrieve a specific DIDComm issuance session by ID.

Get DIDs

Tool to retrieve a list of Decentralized Identifiers (DIDs) for a specific project.

Get mDoc Credential Template

Tool to retrieve a specific mDoc credential template by ID.

Get mDoc Credential Template JSON Schema

Tool to retrieve the JSON schema for an mDoc credential template.

Get OpenID4VC Issuance Session

Tool to retrieve a specific OpenID4VC issuance session by ID.

Get OpenID4VC Verification Session

Tool to retrieve a specific OpenID4VC verification session by ID.

Get Presentation Template

Tool to retrieve a specific presentation template by ID.

Get Presentation Templates

Tool to retrieve a list of presentation templates for a project.

Get Project Members

Tool to retrieve a list of project members.

Get Project Profile

Tool to retrieve the default profile for a project.

Get Projects

Tool to retrieve a list of all projects accessible to the authenticated user.

Get Project Webhooks

Tool to retrieve a list of webhooks configured for a specific project.

Get SD-JWT VC Credential Template

Tool to retrieve a specific SD-JWT VC credential template by ID.

Get SD-JWT VC Credential Template JSON Schema

Tool to retrieve the JSON schema for an SD-JWT VC credential template.

Get Trusted Entities

Tool to retrieve trusted entities for a specific project.

Get Trusted Entity

Tool to retrieve a specific trusted entity by ID.

Issue Direct SD-JWT VC

Tool to directly issue an SD-JWT VC credential without exchange protocol.

List AnonCreds Credential Templates

Tool to retrieve all AnonCreds credential templates for a project.

List Certificates

Tool to retrieve all X.

List Certificate Signing Requests

Tool to retrieve all certificate signing requests for a project.

List DIDComm Invitations

Tool to retrieve all DIDComm invitations for a project.

List DIDComm Issuance Offers

Tool to list all DIDComm issuance offers within a project.

List DIDComm Mediator Connections

Tool to retrieve connections for a DIDComm mediator.

List DIDComm Mediators

Tool to retrieve all DIDComm mediators for a project.

List DIDComm Verification Requests

Tool to list all DIDComm verification sessions for a project.

List Issued Credentials

Tool to list metadata for all issued credentials within a project.

List mDoc Credential Templates

Tool to retrieve all mDoc credential templates for a project.

List OpenID4VC Issuance Sessions

Tool to retrieve all OpenID4VC issuance sessions for a project.

List OpenID4VC Verification Sessions

Tool to retrieve all OpenID4VC verification sessions for a project.

List SD-JWT VC Credential Templates

Tool to retrieve all SD-JWT VC credential templates for a project.

Receive DIDComm Invitation

Tool to receive and process an external DIDComm invitation.

Revoke Certificate

Tool to revoke a certificate in a project.

Send DIDComm Basic Message

Tool to send a basic DIDComm message to a connection.

Send Custom DIDComm Message

Tool to send a custom DIDComm message to a connection.

Unarchive AnonCreds Credential Template

Tool to unarchive an archived AnonCreds credential template.

Unarchive mDoc Credential Template

Tool to unarchive an archived mDoc credential template.

Unarchive SD-JWT VC Credential Template

Tool to unarchive an archived SD-JWT VC credential template.

Update DIDComm Connection

Tool to update a DIDComm connection.

Update mDoc Credential Template

Tool to update an existing mDoc credential template.

Update Presentation Template

Tool to update an existing presentation template.

Update Project

Tool to update an existing project's name and verification data access settings.

Update Project Profile

Tool to update the default profile for a project.

Update SD-JWT VC Credential Template

Tool to update an existing SD-JWT VC credential template.

Update Trusted Entity

Tool to update an existing trusted entity in a project.

FAQ

Frequently asked questions

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

Yes, you can. Vercel AI SDK v6 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 Paradym tools.

Yes, absolutely. You can configure which Paradym 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.

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 Paradym data and credentials are handled as safely as possible.

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