Think back to the last time you swapped tokens. Before you swap, you have to click the Approve button. Most wallets or dApps suggest you choose Max or Default. You click it because you think This will save you gas fees and you will have to reapprove next time. That a fatal mistake. You just signed a contract to sell your soul. You gave that Smart Contract the right to spend all the tokens in your wallet, anytime, forever.
๐ธ Risk Mechanism when you Unlimited Allowance for Dapp:
In principle, Smart Contract cannot take your money arbitrarily. It needs your permission.
When you grant Unlimited allowance to a dApp, that dApp can move your tokens without requiring you to sign another transaction.
Possible disaster scenarios. 6 months later, DEX A gets Hacked or the Devs Rug Pull. The Hacker finds your old Approve permission. They use that permission to drain 100,000 USDT from your wallet, even while you are sleeping and your hardware wallet is locked in a safe.
๐ธ Solutions to help you avoid losing money silently:
Always Edit Permission. When Approving, never click Max. Enter the exact amount you intend to trade. It costs a bit more gas next time, but it's infinitely safer.
Regular Revoke. Treat this like a regular health checkup.
Scan your wallet.
If you see strange contracts or old dApps you no longer use having Unlimited access, click Revoke immediately to lock the backdoor.
๐น In DeFi, Convenience is the enemy of Security. Do not let a lazy click today cost you your entire fortune tomorrow.
Right now, how many strangers have a backdoor key to your main wallet? Are you 100% sure they are all honest?
News is for reference, not investment advice. Please read carefully before making a decision.