Glossary · Wallets & security

Token approval

Permission you grant a contract to spend a token from your wallet.

To let a smart contract move your tokens (for a swap, for example), you sign a token approval. Approvals can be unlimited, which is convenient but risky if the contract is malicious or later exploited.

It is good practice to review what each signature approves, reject approvals you did not initiate, and revoke approvals you no longer need.

Related terms

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Educational only, not financial advice.