Resolves TOO-201
Documentation PR for this is here:
https://github.com/ArcadeAI/docs/pull/626
<!-- CURSOR_SUMMARY -->
---
> [!NOTE]
> **Medium Risk**
> Changes how environment variables/secrets are discovered and loaded,
which can subtly alter runtime behavior depending on directory structure
and existing env vars; bounded traversal and added tests reduce but
don’t eliminate this risk.
>
> **Overview**
> **Improves `.env` discovery across the MCP server and CLI.** Adds
`find_env_file()` (bounded by the nearest `pyproject.toml` by default)
and switches settings loading, `arcade deploy`, `arcade configure` stdio
env injection, and provider API-key resolution to use it.
>
> Updates dev reload to also watch the discovered `.env` even when it
lives outside the current working directory, adjusts `deploy --secrets
all` to only run when a `.env` was found, and moves the minimal
scaffold’s `.env.example` to the project root with updated
tests/integration checks. Version bumps align examples and top-level
deps with `arcade-mcp-server` `1.17.4` and `arcade-mcp` `1.11.2`.
>
> <sup>Written by [Cursor
Bugbot](https://cursor.com/dashboard?tab=bugbot) for commit
40cff1738c14674ce01f09fd325ece9c874cd072. This will update automatically
on new commits. Configure
[here](https://cursor.com/dashboard?tab=bugbot).</sup>
<!-- /CURSOR_SUMMARY -->
---------
Co-authored-by: Claude Sonnet 4.6 <noreply@anthropic.com>
# Valuable references for the reviewer:
- Docs PR: https://github.com/ArcadeAI/docs/pull/583
- Implements Phase 1 of the following planning doc:
https://linear.app/arcadedev/project/arcade-mcp-supports-mcp-auth-front-door-auth-7cbaa20cb054/overviewhttps://github.com/user-attachments/assets/79ad43fd-f5e8-4793-a1dd-18b35acefdc3
# PR Description
Adds OAuth 2.1 Resource Server authentication to arcade-mcp-server,
enabling HTTP MCP servers to validate Bearer tokens on every request.
This unlocks tool-level authorization and secrets support for HTTP
servers.
- Multiple authorization server support
- Granular token validation options (verify_exp, verify_iat, verify_iss)
- Environment variable configuration
- OAuth discovery metadata endpoint
(/.well-known/oauth-protected-resource)
- Extracts sub claim from token as context.user_id
- Lifts transport restrictions for tools requiring auth/secrets on HTTP
when protected
```python
from arcade_mcp_server import MCPApp
from arcade_mcp_server.resource_server import ResourceServerAuth, AuthorizationServerEntry
resource_server_auth = ResourceServerAuth(
canonical_url="http://127.0.0.1:8000/mcp",
authorization_servers=[
AuthorizationServerEntry(
authorization_server_url="https://auth.example.com",
issuer="https://auth.example.com",
jwks_uri="https://auth.example.com/jwks",
)
],
)
app = MCPApp(name="my_server", version="1.0.0", auth=resource_server_auth)
```
# Testing
Beyond the comprehensive unit tests, I also manually tested end-to-end
with WorkOS Authkit (DCR) and KeyCloak (non-DCR).
# Future Work
- CIMD support
- An `ArcadeResourceServer` to make adding front-door auth super easy
when using Arcade's Auth Server
<!-- CURSOR_SUMMARY -->
---
> [!NOTE]
> Adds OAuth 2.1 front-door auth (JWKS validation + OAuth discovery) and
propagates user identity to tools, enabling auth/secret-requiring tools
over HTTP.
>
> - **Authentication (Front-Door OAuth 2.1)**
> - New `resource_server` module with `ResourceServerAuth`
(multi-authorization-server, metadata) and `JWKSTokenValidator`
(JWKS-based JWT validation) plus granular validation options.
> - ASGI `ResourceServerMiddleware` validates Bearer tokens on every
HTTP request and injects `resource_owner`.
> - OAuth discovery endpoint via FastAPI router at
`/.well-known/oauth-protected-resource[/<path>]`.
> - **Integration**
> - `MCPApp`/`worker` accept `auth`/`resource_server_validator`, mount
middleware, expose discovery; logs accepted auth servers.
> - HTTP transport (`http_streamable`) carries `SessionMessage` with
`resource_owner` from request → session.
> - `Context`/`Session`/`Server` plumb `resource_owner`; `Server`
selects `user_id` preferring token `sub`.
> - **Behavior Changes**
> - HTTP transport restriction lifted for tools requiring
`authorization`/`secrets` when request is authenticated; otherwise
blocked with actionable error.
> - **Configuration**
> - Env-var based auth config via `MCP_RESOURCE_SERVER_*` in
`MCPSettings.ResourceServerSettings`; `.env` auto-load.
> - **Telemetry**
> - Usage tracking records `resource_server_type` on server start.
> - **Examples**
> - New `examples/mcp_servers/authorization` sample server (HTTP auth,
secrets, Reddit tool) with Docker setup.
> - **Tests**
> - Extensive unit tests for validators, middleware, env config,
multi-AS, transport rules, and app integration.
> - **Version**
> - Bump `arcade-mcp-server` to `1.12.0`; minor docstring tweak in
`__init__.py`.
>
> <sup>Written by [Cursor
Bugbot](https://cursor.com/dashboard?tab=bugbot) for commit
d1116cdcafb0c7cb8f91e66682eb1fbae380da31. This will update automatically
on new commits. Configure
[here](https://cursor.com/dashboard?tab=bugbot).</sup>
<!-- /CURSOR_SUMMARY -->
Resolves TOO-152
Versions:
* arcade-mcp\==1.0.0rc1
* arcade-mcp-server\==1.0.0rc1
* arcade-core\==2.5.0rc1
* arcade-tdk\==2.6.0rc1
* arcade-serve\==2.2.0rc1
### Summary
Adds first-class MCP support across Arcade, introduces a new MCP server
and CLI, unifies the project under the arcade-mcp name, overhauls
templates/scaffolding, and improves developer tooling, secrets
management, and examples.
### Highlights
- **MCP Server & Core**
- New MCP server with stdio and HTTP/SSE transports, session management,
resumability, and lifecycle handling.
- FastAPI-like `MCPApp` for building servers with lazy init; integrated
worker+MCP HTTP app option.
- Middleware system (logging and error handling), robust exception
hierarchy, and Pydantic-based settings.
- Async-safe managers for tools, resources, and prompts backed by
registries and locks.
- Developer-facing, transport-agnostic runtime context interfaces (logs,
tools, prompts, resources, sampling, UI, notifications).
- Conversion from Arcade ToolDefinition to MCP tool schema; OpenAI JSON
tool schema converter.
- Parser supports `@app.tool`/`@app.tool(...)` decorators.
- **CLI**
- New `mcp` command to run MCP servers with stdio or HTTP/SSE.
- New `secret` command to set/list/unset tool secrets (supports .env
input, preserves original casing for lookups).
- `new` command refactored; option to create a full toolkit package with
scaffolding.
- `chat` command removed.
- `serve.py` imports updated to `arcade_serve.fastapi.telemetry`;
version retrieval now uses `arcade-mcp`.
- `show.py` refactor to use new local catalog utilities.
- `display_tool_details` improved: adds “Default” column and handles
nested properties.
- **Configuration & Discovery**
- New `configure.py` to set up Claude Desktop, Cursor, and VS Code to
connect to local or Arcade Cloud MCP servers.
- Discovery utilities to find/install toolkits, build `ToolCatalog`s,
analyze files for tools, load kits from directories (pyproject parsing),
and build minimal toolkits.
- Better handling of provider API key resolution and evaluation suite
loading.
- **Templates & Scaffolding**
- Reorganized template structure (minimal vs full); moved
`.pre-commit-config.yaml`, `.ruff.toml`, license, Makefile, README,
tests, and tools layout to correct paths.
- Minimal template adds `.env.example` for runtime secret injection.
- Template pyproject updated for MCP servers; includes sample server
with greeting and secret-reveal tools.
- Authorization flow in templates simplified.
- **Repo-wide Renaming & Examples**
- Migrates references from `arcade-ai` to `arcade-mcp` across READMEs,
scripts, and package metadata.
- Examples updated (LangChain/LangGraph/AI SDK/TypeScript) and package
name changed to `arcade-mcp-sdk`.
- **Evals & Core Utilities**
- Evals now use OpenAI tooling format (`OpenAIToolList`, `to_openai`);
`tool_eval` takes `provider_api_key`.
- Core utilities: fixed `does_function_return_value` by dedenting before
parse; version bump to `2.5.0rc1` and dependency cleanup.
- **Tooling & CI**
- `setup-uv-env` action splits toolkit vs contrib dependency
installation.
- Pre-commit: excludes `libs/arcade-mcp-server/mkdocs.yml` and
`libs/tests/` from YAML and Ruff hooks; Ruff per-file ignores (e.g.,
C901 in `libs/**/*.py`, TRY400 in server docs paths).
- Makefile updates for uv env setup, quality checks, tests, builds, and
new `shell` target.
- Added Makefile to MCP server library to streamline dev workflow.
- **Cleanup**
- Removed `claude.json` config.
- Simplified stdio entrypoint; removed unused imports (`arcade_gmail`,
`arcade_search`).
### Breaking Changes
- **CLI**: `chat` command removed; use `mcp`, `secret`, and updated
`new`.
- **Naming**: All users should update references from `arcade-ai` to
`arcade-mcp`.
- **Templates**: File paths moved; downstream scripts referencing old
template locations may need updates.
### Getting Started
- Run an MCP server:
- `arcade mcp --stdio --toolkits your_toolkit`
- `arcade mcp --http --toolkits your_toolkit`
- Manage secrets:
- `arcade secret set your_toolkit KEY=value`
- `arcade secret list your_toolkit`
- `arcade secret unset your_toolkit KEY`
- Configure clients:
- `arcade configure` to set up Claude Desktop, Cursor, and VS Code for
local/Arcade Cloud MCP.
---------
Co-authored-by: Sam Partee <sam@arcade-ai.com>
Co-authored-by: Shub <125150494+shubcodes@users.noreply.github.com>
