Delegate Management

Overview of Delegation Mechanism

IIn earlier Smart Margin (SM) versions (v1/v2), delegation was handled at the SM account level. SMv3 introduces a more streamlined approach by utilizing Synthetix account permissions. Users can delegate control to another address by granting it the "commit async order" permission, which is executed directly through the Synthetix proxy.

Permissions in SMv3

The core functionality of SMv3 hinges on account permissions. Granting Synthetix Exchange the administrative authority over a user's Synthetix v3 account enables the Engine to carry out trades on the user’s behalf. This arrangement also empowers the Engine to offer specialized trading features, such as conditional orders, which are currently not available in the Synthetix protocol itself.

Management of Delegates

Delegates are addresses granted the "commit async order" permission for a specific account. Users can manage these permissions through the Synthetix v3 Perps market proxy:

• Granting Permissions: Use the grantPermission function to assign permissions to a delegate.

• Revoking Permissions: Use the revokePermission function to remove permissions.

If the ownership of an account NFT is transferred, all previously assigned permissions are automatically revoked, ensuring that only the new owner has control.

Decentralization Considerations

Before processing any action, the Engine verifies permission status with Synthetix v3. This ensures that administrative and "commit async order" permissions are securely managed. However, the overall decentralization and security of the system depend on its foundational components. Since the Synthetix protocol is upgradeable, there is a reliance on the integrity of the Synthetix-owned multisig to prevent malicious actions. Users should remain aware of these dependencies when considering delegation.