Posted on Nov 23, 2023Read on

Upgrade Your Strategy with Delegated Trading

Greetings Kwenta Community. Today, Kwenta launches a game-changing feature: Delegated Trading. This innovative approach offers enhanced security and flexibility, transforming the trading experience. Whether you're an individual trader or part of a larger team, Kwenta's Delegated Trading caters to diverse needs, enabling efficient management across devices and teams without compromising security. Join us as we explore how this feature is setting new standards in the realm of crypto trading.

The Essence of Delegated Trading

Delegated Trading on Kwenta allows users to delegate trading to multiple wallets, enabling a seamless trading experience across hardware wallets, hot wallets, and more.

What Makes Delegated Trading Different?

While wallet delegation features do exist on other platforms, Kwenta’s delegation system brings unique advantages. In some other systems, a delegated wallet gains full administrative control over the account, increasing the risk for users with each additional delegated address.

With Kwenta’s Delegated Trading, deposit and withdrawal are not enabled for delegated wallets. This means that while users still assume the risks of any trades placed by delegated wallets, a compromised delegated wallet has a barrier of security against theft of assets deposited in to the Smart Margin account.

Why Use Delegated Trading?

This feature allows traders to manage a single Kwenta Smart Margin account from multiple devices or for teams of traders operating a single fund. While traders can imagine their own use cases, a few examples can help us imagine the possibilities.

  • Trading across multiple devices: Currently, trading across multiple devices requires exposure of a seed phrase or private key, and often users seeking convenience will copy and paste their credentials, or even send them through email or other insecure means. With Delegated trading, users can avoid these risks by generating keys locally, and simply delegating to each device.

  • Easy trading from a hardware wallet: In addition to the convenience of trading across multiple devices, traders can improve security by ensuring the owner of their Kwenta Smart Margin Account is a hardware wallet with a proper physical backup. This ensures that while the hardware wallet must be present for delegation setup and withdrawals, it may be safely and conveniently stored away for everyday trading.

  • Team Trading and Fund Management: For institutional traders, security is of the utmost importance. Currently, few institutions use decentralized tools, and infrastructure allowing a team to manage an onchain fund is nonexistent, leading to poor security or excessive overhead for the fund. Delegated trading provides a simple solution for multiple people to handle a single fund largely missing from existing platforms.

Future Considerations

While these use cases provide massive improvements to both security and UX on Kwenta, Delegated Trading is an important building block for future upgrades and features. Some possibilities for future upgrades include:

  • Additional Customization: The current delegation release has many advantages, but only supports a single configuration for delegated wallet permissions. In the future, allowing users to fine tune these permissions for each delegate could provide enhanced flexibility.

  • Integration with Additional Authentication Types: Features such as Social Login, which allows a user to interact with decentralized applications through Google, Apple, or similar Web2 credentials is becoming increasingly popular for new applications such as Friend.Tech. By combining the benefits of delegation with these convenience tools, Kwenta can offer the same convenience as Web2 applications without compromising Web3 security.

  • Additional Time or Trigger Based Orders: Kwenta currently offers a secure, decentralized system of advanced orders allowing keepers to automatically modify positions at a user’s specified trigger price. Delegated Trading opens the door for additional order types or triggers previously only available to developers with the skill to build their own bots on the Kwenta SDK. Though some of these features may be Kwenta native, our permissionless system enables 3rd party integrations utilizing these features. The possibilities are endless!

How to Access Delegated Trading

  • Connect Your Wallet Start by connecting your primary wallet to the Kwenta Alpha Release.

    Note: Ensure you’ve created and funded your Smart Margin account from your primary wallet before trading from a delegated wallet.

  • Navigate to Manage: Click on your ENS or connected wallet address at the top right of the screen and select “Manage” to access wallet delegation.

The Wallet Connect menu got an upgrade! From here, you can now change your connected wallet, view an address in Watcher mode, or access the delegation menu.

  • Enter the Delegated Wallet: In the new window, choose “Delegated Trading” and enter the address of the delegated wallet.

The Delegation menu allows you to delegate wallets, see wallets delegating to you, and add a label to each wallet for convenience.

  • Trade: Delegated wallets can find and connect to Smart Margin Accounts delegated to them by clicking on their ENS or wallet address at the top right of the screen.

By selecting "Connect", 0xA6a can now trade from the kwenta.eth owned Smart Margin Account

Safety First

While Delegated Trading offers flexibility, it is crucial to delegate only to wallets you trust. Remember, only the owner of the Smart Margin account has the authority to withdraw funds, but does not mitigate the risks associated with leveraged trading.

Share your feedback

We’d love to hear how you’re using delegated trading. Whether you need to report an issue, need assistance, or just want to tell us your killer use case for delegation, we’re waiting to hear from you on Discord.

You can also help us spread the word about delegated trading by sharing this post on X.

Happy Delegating!

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