Delegated Trading
Add and manage delegates to trade on your behalf.
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.
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