Overview
A token approval is a permission granting a contract the right to spend a user’s tokens. It is required for dapps to interact with tokens. Unlimited approvals carry risk.
How It Works
When using a dapp, users approve a contract to spend tokens up to a limit. The contract can then transfer tokens within that limit. Approvals persist until revoked.
Why It Matters
Approvals enable DeFi interactions but are a major attack vector if misused. Managing and revoking approvals is a key security practice. Tools like Revoke.cash help.
Related Concepts
Token approvals relate to ERC-20, Approval Scams, and Revoke.cash. They grant Spending permissions.