Position Managers

What is a Position Manager?

The Borrowers Operations contract allows for any user to approve another entity to open, adjust or close their positions on their behalf. These entities are labeled as "Positions Managers".

Position Managers can be both EOAs and Smart Contracts.

How does the approval to Position Managers work?

There's two type of accesses that users can approve Position Managers (PM) for:

  • Persistent: The position manager will have access to operate on the user's behalf on any of their CDPs, an unlimited amount of times, and until this approval is removed.

  • One Time: The position manager is approved to perform one operation, on one CDP, on behalf of the user. After this operation is executed, the system automatically removes the approval.

A user can revoke both types of approvals from a PM at any time. In addition, a PM can renounce approved access from a user.

How does the funding flow works for Position Managers?

Assets deposited or withdrawn from the system via a Position Manager will be taken from or transferred to the PM's address. This means that, in order to open a CDP for a user, the PM should hold the required tokens or be able to access the user's assets (through a token approval in case of a Smart Contract based PM, for instance). Tokens withdrawn from a position through a PM will go to the manager first. This applies to both the collateral and debt assets.

Users should be aware of the conditions and rules under which their assets will be managed, both when dealing with EOAs and Smart Contract managers.

How many Position Managers can a user approve?

A user can approve unlimited Position Managers to act on their behalf.

Warning: Every approved Position Manager will have access to modify all of the CDPs owned by the user, regardless of whether or not they were involved on their opening or previous management.

What is the purpose of Position Managers?

The ability to delegate management rights from users to third parties was introduced to enable potential integrations such as:

  • Auto-top/repayment services

  • Emergency management and withdrawal services

  • Pooling services

The eBTC Protocol does not natively offer any of the services mentioned above. Please exercise extreme caution when granting approval to any entity to manage your positions on your behalf.

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