Position Manager Flow¶

End-to-end execution flow for managing position manager approvals and performing actions on behalf of users in Aave V3.

Quick Reference¶

Aspect	Details
Entry Points	`Pool.approvePositionManager(positionManager, approve)` `Pool.renouncePositionManagerRole(user)` `Pool.setUserUseReserveAsCollateralOnBehalfOf(asset, useAsCollateral, onBehalfOf)` `Pool.setUserEModeOnBehalfOf(categoryId, onBehalfOf)`
Key Transformations	None - direct storage updates
State Changes	`_positionManager[user][positionManager] = approve`
Events Emitted	`PositionManagerApproved`, `PositionManagerRevoked`

Flow Diagram¶

flowchart TD
    %% Styling definitions
    classDef validation fill:#ffcccc,stroke:#ff0000,stroke-width:2px
    classDef transformation fill:#ccffcc,stroke:#00aa00,stroke-width:2px
    classDef storage fill:#ccccff,stroke:#0000ff,stroke-width:2px
    classDef event fill:#ffffcc,stroke:#aaaa00,stroke-width:2px
    classDef error fill:#ff0000,stroke:#000000,color:#fff
    
    subgraph ApprovalFlow ["1. Approve Position Manager Flow"]
        direction TB
        Entry1["Pool.approvePositionManager<br/>positionManager, approve"] --> CheckState1["VALIDATION<br/>Check current approval state"]
        class CheckState1 validation
        
        CheckState1 -->|Already same state| Skip1[Return early]
        CheckState1 -->|State change needed| Store1["STORAGE UPDATE<br/>_positionManager<br/>[msg.sender][positionManager]<br/>= approve"]
        class Store1 storage
        
        Store1 --> Branch1{approve?}
        Branch1 -->|Yes| EventApproved["EMIT<br/>PositionManagerApproved"]
        class EventApproved event
        Branch1 -->|No| EventRevoked["EMIT<br/>PositionManagerRevoked"]
        class EventRevoked event
    end
    
    subgraph RenounceFlow ["2. Renounce Position Manager Role Flow"]
        direction TB
        Entry2["Pool.renouncePositionManagerRole<br/>user"] --> CheckState2["VALIDATION<br/>Check if caller is approved<br/>as position manager"]
        class CheckState2 validation
        
        CheckState2 -->|Not approved| Skip2[Return early]
        CheckState2 -->|Is approved| Store2["STORAGE UPDATE<br/>_positionManager<br/>[user][msg.sender]<br/>= false"]
        class Store2 storage
        
        Store2 --> EventRevoked2["EMIT<br/>PositionManagerRevoked"]
        class EventRevoked2 event
    end
    
    subgraph CollateralFlow ["3. Set Collateral On Behalf Flow"]
        direction TB
        Entry3["Pool.setUserUseReserveAsCollateral<br/>OnBehalfOf<br/>asset, useAsCollateral,<br/>onBehalfOf"] --> ValidateManager["VALIDATION<br/>onlyPositionManager<br/>modifier check"]
        class ValidateManager validation
        
        ValidateManager -->|Revert| Error1["ERROR<br/>CallerNotPositionManager"]
        class Error1 error
        ValidateManager -->|Pass| ExecuteCollateral["SupplyLogic<br/>executeUseReserveAsCollateral"]
        
        ExecuteCollateral --> ValidateCollateral["ValidationLogic<br/>validateUseAsCollateral"]
        class ValidateCollateral validation
        
        ValidateCollateral --> UpdateConfig["UserConfig<br/>setUsingAsCollateral"]
        class UpdateConfig storage
        
        UpdateConfig --> CollateralEvent["EMIT<br/>ReserveUsedAsCollateral<br/>Enabled/Disabled"]
        class CollateralEvent event
    end
    
    subgraph EModeFlow ["4. Set E-Mode On Behalf Flow"]
        direction TB
        Entry4["Pool.setUserEModeOnBehalfOf<br/>categoryId, onBehalfOf"] --> ValidateManager2["VALIDATION<br/>onlyPositionManager<br/>modifier check"]
        class ValidateManager2 validation
        
        ValidateManager2 -->|Revert| Error2["ERROR<br/>CallerNotPositionManager"]
        class Error2 error
        ValidateManager2 -->|Pass| ExecuteEMode["SupplyLogic<br/>executeSetUserEMode"]
        
        ExecuteEMode --> ValidateEMode["ValidationLogic<br/>validateEModeCategory"]
        class ValidateEMode validation
        
        ValidateEMode --> UpdateEMode["STORAGE UPDATE<br/>_usersEModeCategory<br/>[onBehalfOf] = categoryId"]
        class UpdateEMode storage
        
        UpdateEMode --> EModeEvent["EMIT<br/>UserEModeSet"]
        class EModeEvent event
    end

Step-by-Step Execution¶

1. Approve Position Manager¶

File: contracts/protocol/pool/Pool.sol

function approvePositionManager(address positionManager, bool approve) external override {
    // Skip if already in desired state (gas optimization)
    if (_positionManager[_msgSender()][positionManager] == approve) return;
    
    // Update storage
    _positionManager[_msgSender()][positionManager] = approve;
    
    // Emit appropriate event
    if (approve) {
        emit PositionManagerApproved({user: _msgSender(), positionManager: positionManager});
    } else {
        emit PositionManagerRevoked({user: _msgSender(), positionManager: positionManager});
    }
}

Key Points:

User (msg.sender) approves a position manager to act on their behalf
State check prevents redundant storage writes
Emits different events based on approval/revocation

2. Renounce Position Manager Role¶

File: contracts/protocol/pool/Pool.sol

function renouncePositionManagerRole(address user) external override {
    // Only proceed if caller is actually an approved position manager
    if (_positionManager[user][_msgSender()] == false) return;
    
    // Revoke approval
    _positionManager[user][_msgSender()] = false;
    
    emit PositionManagerRevoked({user: user, positionManager: _msgSender()});
}

Key Points:

Position manager can voluntarily renounce their role
Returns early if caller is not actually approved
Emits PositionManagerRevoked event

3. Access Control Modifier¶

File: contracts/protocol/pool/Pool.sol

/**
 * @dev Only an approved position manager can call functions marked by this modifier.
 */
modifier onlyPositionManager(address onBehalfOf) {
    _onlyPositionManager(onBehalfOf);
    _;
}

function _onlyPositionManager(address onBehalfOf) internal view virtual {
    require(_positionManager[onBehalfOf][_msgSender()], Errors.CallerNotPositionManager());
}

Key Points:

Checks if msg.sender is approved as position manager for onBehalfOf user
Reverts with CallerNotPositionManager if not authorized
Used by both setUserUseReserveAsCollateralOnBehalfOf and setUserEModeOnBehalfOf

4. Set Collateral On Behalf Of User¶

File: contracts/protocol/pool/Pool.sol

function setUserUseReserveAsCollateralOnBehalfOf(
    address asset,
    bool useAsCollateral,
    address onBehalfOf
) external override onlyPositionManager(onBehalfOf) {
    SupplyLogic.executeUseReserveAsCollateral(
        _reserves,
        _reservesList,
        _eModeCategories,
        _usersConfig[onBehalfOf],
        onBehalfOf,
        asset,
        useAsCollateral,
        ADDRESSES_PROVIDER.getPriceOracle(),
        _usersEModeCategory[onBehalfOf]
    );
}

File: contracts/protocol/libraries/logic/SupplyLogic.sol

function executeUseReserveAsCollateral(
    mapping(address => DataTypes.ReserveData) storage reserves,
    mapping(uint256 => address) storage reservesList,
    mapping(uint8 => DataTypes.EModeCategory) storage eModeCategories,
    DataTypes.UserConfigurationMap storage userConfig,
    address user,
    address asset,
    bool useAsCollateral,
    address priceOracle,
    uint8 userEModeCategory
) external {
    DataTypes.ReserveData storage reserve = reserves[asset];
    DataTypes.ReserveCache memory reserveCache = reserve.cache();
    
    // Update state
    reserve.updateState(reserveCache);
    
    // Validate
    ValidationLogic.validateUseAsCollateral(
        reserves,
        reservesList,
        reserveCache,
        userConfig,
        asset,
        user,
        useAsCollateral,
        priceOracle,
        userEModeCategory
    );
    
    // Update user configuration
    userConfig.setUsingAsCollateral(reserve.id, useAsCollateral);
    
    // Emit appropriate event
    if (useAsCollateral) {
        emit ReserveUsedAsCollateralEnabled(asset, user);
    } else {
        emit ReserveUsedAsCollateralDisabled(asset, user);
    }
}

Key Points:

Position manager can enable/disable collateral usage for user
Requires onlyPositionManager modifier - validates access control
Performs same validations as direct user call
Emits collateral events

5. Set E-Mode On Behalf Of User¶

File: contracts/protocol/pool/Pool.sol

function setUserEModeOnBehalfOf(
    uint8 categoryId,
    address onBehalfOf
) external override onlyPositionManager(onBehalfOf) {
    SupplyLogic.executeSetUserEMode(
        _reserves,
        _reservesList,
        _eModeCategories,
        _usersEModeCategory,
        _usersConfig[onBehalfOf],
        onBehalfOf,
        ADDRESSES_PROVIDER.getPriceOracle(),
        categoryId
    );
}

File: contracts/protocol/libraries/logic/SupplyLogic.sol

function executeSetUserEMode(
    mapping(address => DataTypes.ReserveData) storage reserves,
    mapping(uint256 => address) storage reservesList,
    mapping(uint8 => DataTypes.EModeCategory) storage eModeCategories,
    mapping(address => uint8) storage usersEModeCategory,
    DataTypes.UserConfigurationMap storage userConfig,
    address user,
    address priceOracle,
    uint8 categoryId
) external {
    // Validation
    ValidationLogic.validateEModeCategory(
        reserves,
        reservesList,
        userConfig,
        eModeCategories,
        categoryId,
        user,
        priceOracle
    );
    
    // Update user's eMode category
    usersEModeCategory[user] = categoryId;
    
    emit UserEModeSet(user, categoryId);
}

Key Points:

Position manager can set user’s eMode category
Validates that user can enter specified eMode category
Updates storage and emits UserEModeSet event

6. Check Approval Status¶

File: contracts/protocol/pool/Pool.sol

function isApprovedPositionManager(
    address user,
    address positionManager
) external view override returns (bool) {
    return _positionManager[user][positionManager];
}

Storage Layout¶

// PoolStorage.sol
// Allowlisted permissionManagers can enable collaterals & switch eModes on behalf of a user
mapping(address user => mapping(address permittedPositionManager => bool))
    internal _positionManager;

Key Points:

Double mapping: user → position manager → bool
Position manager must be explicitly approved by user
Approval is required before any “onBehalfOf” actions

Event Details¶

PositionManagerApproved Event¶

Emitted when a user approves a position manager.

event PositionManagerApproved(
    address indexed user,           // User granting approval
    address indexed positionManager // Address being approved
);

PositionManagerRevoked Event¶

Emitted when position manager approval is revoked (either by user or by renouncement).

event PositionManagerRevoked(
    address indexed user,           // User whose approval is revoked
    address indexed positionManager // Address being revoked
);

ReserveUsedAsCollateralEnabled Event¶

Emitted when position manager enables collateral for user.

event ReserveUsedAsCollateralEnabled(
    address indexed reserve,
    address indexed user
);

ReserveUsedAsCollateralDisabled Event¶

Emitted when position manager disables collateral for user.

event ReserveUsedAsCollateralDisabled(
    address indexed reserve,
    address indexed user
);

UserEModeSet Event¶

Emitted when position manager sets eMode category for user.

event UserEModeSet(
    address indexed user,
    uint8 categoryId
);

Error Conditions¶

Error	Condition	File
`CallerNotPositionManager`	`msg.sender` is not approved as position manager for `onBehalfOf`	Pool.sol
`HEALTH_FACTOR_LOWER_THAN_LIQUIDATION_THRESHOLD`	Disabling collateral would put user’s health factor below liquidation threshold	ValidationLogic.sol
`EModeCategoryReserved`	Attempting to use category 0 (reserved)	Pool.sol
`InconsistentEModeCategory`	User has collateral that cannot be used in the requested eMode category	ValidationLogic.sol

Source File Locations¶

contracts/protocol/pool/Pool.sol
contracts/protocol/pool/PoolStorage.sol
contracts/protocol/libraries/logic/SupplyLogic.sol
contracts/protocol/libraries/logic/ValidationLogic.sol
contracts/protocol/libraries/helpers/Errors.sol

Security Considerations¶

Approval Required: Position managers must be explicitly approved before they can act on behalf of a user
Revocation: Users can revoke approval at any time via approvePositionManager(manager, false)
Self-Renouncement: Position managers can voluntarily renounce their role via renouncePositionManagerRole(user)
Limited Actions: Position managers can ONLY:
- Enable/disable user’s collateral (setUserUseReserveAsCollateralOnBehalfOf)
- Set user’s eMode category (setUserEModeOnBehalfOf)
They CANNOT:
- Supply on behalf of user
- Withdraw on behalf of user
- Borrow on behalf of user
- Repay on behalf of user
- Liquidate positions
Validation Still Applied: All actions performed by position managers go through the same validation logic as direct user actions
Gas Optimization: approvePositionManager returns early if state is already correct

Position Manager Flow¶

Quick Reference¶

Flow Diagram¶

Step-by-Step Execution¶

1. Approve Position Manager¶

2. Renounce Position Manager Role¶

3. Access Control Modifier¶

4. Set Collateral On Behalf Of User¶

5. Set E-Mode On Behalf Of User¶

6. Check Approval Status¶

Storage Layout¶

Event Details¶

PositionManagerApproved Event¶

PositionManagerRevoked Event¶

ReserveUsedAsCollateralEnabled Event¶

ReserveUsedAsCollateralDisabled Event¶

UserEModeSet Event¶

Error Conditions¶

Related Flows¶

Source File Locations¶

Security Considerations¶