GlossaryIntermediate
Token Approval
Permission you grant a smart contract to move a specific token from your wallet.
A token approval is a permission a wallet owner grants to a smart contract, allowing that contract to move a specified token, and sometimes a specified amount, out of the wallet on the owner's behalf.
Approvals are a normal part of interacting with many DeFi applications, but an unlimited or forgotten approval left active on a malicious or later-compromised contract is a real, well-documented risk.
Examples
- Using a decentralized exchange typically requires approving it to spend a specific token first.
- Periodically reviewing and revoking unused token approvals is a recommended DeFi security habit.