Understanding ERC-20 Allowances: The Hidden Backdoor
Why unlimited approvals are dangerous, how to spot risky spenders, and how to keep your allowances minimal without breaking UX.
Token approvals are convenient, but unlimited allowances are a silent risk.
A single malicious spender can drain multiple assets once approved.
- -Prefer per-transaction approvals
- -Audit allowances every month
- -Flag unknown spender contracts
What allowances actually authorize
Approvals let a contract transfer your tokens without additional signatures.
Unlimited approvals remain active until explicitly revoked.
A safer allowance strategy
Use small approval amounts and rotate approvals after use.
Bookmark trusted dApps and avoid random approval prompts.
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