Token approvals (allowances): the mistake most users don’t notice

Approvals are necessary, but unlimited approvals can be risky if you approve the wrong contract.

published 2026-01-22updated 2026-03-01

Two common mistakes

  1. Unlimited approval to an untrusted contract.
  2. Forgetting old approvals after a one-off action.

A safer routine

  • Approve what you need.
  • Review allowances regularly.
  • Don’t sign mystery requests.

Further reading

How to think about allowances

An allowance is permission for a contract to transfer your token. The risk is not that every approval is bad — it’s that approvals can stay active long after you forget them. If you approve the wrong contract (or if a contract becomes compromised), an unlimited allowance can increase exposure.

Safer defaults

  • Prefer limited approvals for one‑off actions.
  • Keep a list of high‑trust contracts you regularly use.
  • Review allowances periodically and remove ones you no longer need.

A simple routine that scales

Keep one wallet for everyday DeFi activity and another for long-term storage. When you need to test new interfaces, use the smaller wallet. This separation limits how much a mistake can cost.