Token approvals are one of the most important concepts to understand in #crypto yet it feels one of the most overlooked
Whether thats the default unlimited er20 approval your giving #uniswap
Or the 'set approval for all' your giving to #Opensea to sell your #nft . . . .
Whether thats the default unlimited er20 approval your giving #uniswap
Or the 'set approval for all' your giving to #Opensea to sell your #nft . . . .
Giving these approvals to something malicious can cost you every token you've given approval for in that wallet
this is why its important to:
1. check and revoke your approvals regularly with sites like revoke.cash
etherscan.io/tokenapprovalc…
this is why its important to:
1. check and revoke your approvals regularly with sites like revoke.cash
etherscan.io/tokenapprovalc…
youd be surprised what you many have approved
for example if you do a swap on 1inch you do a sign and a approval in the same transactions and it will set an unlimited allowance for that token without giving you the option to change it before hand
for example if you do a swap on 1inch you do a sign and a approval in the same transactions and it will set an unlimited allowance for that token without giving you the option to change it before hand
a lot of defi applications have unlimited approval set by default as a user convenience feature so you dont have to pay another gas fee in the future to sign for another approval however...
2. manually editing the token approval amount on defi apps to the max amount youll think youll need to swap and the most your willing to lose if there was a smart contract exploit
see the mutichain WETH explot as an example cointelegraph.com/news/multichai…
see the mutichain WETH explot as an example cointelegraph.com/news/multichai…
Make sure your interacting with the right website and smart contract when signing a 'set approval for all' for your nfts
A lot of 'hacks' happen this way where the victim believes they are interacting with a legitimate site but dont check the contract
A lot of 'hacks' happen this way where the victim believes they are interacting with a legitimate site but dont check the contract
they end up giving approval to the hackers malicious contract instead to move/ steal the nfts on their behalf
Also understanding the difference between signing a signature and signing a transaction that costs gas is important
-signatures are generally less high risk as its required often to sign into dapps to verify the contents of that respective wallet
-signatures are generally less high risk as its required often to sign into dapps to verify the contents of that respective wallet
However its still possible to be exploited via signature
might do a video on everything explained above in the future
let me know what you think or what you think more people need help understanding
let me know what you think or what you think more people need help understanding
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