What are Smart Contract Allowances/Token Approvals？
Smart contract/token allowances, also referred to as approvals, involve you allowing DApps to access and move tokens in your wallet on your behalf. For example, when you use a DEX (decentralized exchange), you'll need to sign an approval that allows its smart contract to take tokens to complete your requested trades. Whilst this sounds inherently risky, bear in mind that giving DApps at least some allowance is always necessary. If you want to use Web3, you won't be able to avoid them.
Why Revoking Approval and Disconnecting Apps are Fundamentally Different?
Disconnecting your wallet from a DApp involves canceling permission to see your public address and your token balances and, depending on what you originally consented to, stopping it from initiating transactions (although not executing them) and viewing past activity. See our article for more info.
Revoking an approval/allowance means a DApp can no longer access the contents of your wallet and move them around.
Why Do You Need to Revoke Permissions and Token Approvals?
Many crisis cases tell us that decentralized DApps come with their own set of problems – the first being the high tendency of being hacked. The nascency of smart contract-enabled applications, coupled with the lack of industry standards, makes it a lot easier for hackers to capitalize on security loopholes.
In light of this existing threat, it is imperative to occasionally review the smart contracts or DApps that have been authorized to conduct sensitive transactions on your behalf. You need to revoke the permissions granted to DApps you no longer trust or those undergoing smart contract upgrades. Also, it is always advisable to do the same to DApps that you have not used in a while. You can easily re-sign the permissions whenever you want to start using them again. Ultimately, this will limit the risks your wallet is exposed to at each given time.
How to Revoke Token Approvals on KuCoin Wallet?
We have listed several useful tools in KuCoin Wallet App to help users easily revoke smart contract allowances and token approvals.
- Head to the 'Discover More' section and click the 'Tools' tab. Choose a platform such as Cointool, EverRevoke, or Unrekt that support multiple networks.
- While at the approve checker page, click onthe ‘Connect Wallet’ button to connect your wallet to the portal.
- For each token on your wallet, you will be able to see the smart contracts that have the approval to either access it or submit transactions on your behalf. You can select the specific approval you want to cancel from here.
- Next, click on ‘Revoke’ to cancel the token approval. By doing so, you will trigger a signature request in your wallet. Approve this request and pay the appropriate gas fee to complete the process.
- You can try to switch to a different smart chain and repeat the above operation.
After all these steps, you’ve successfully revoked smart contract allowances/token approvals! We strongly recommend that our users get into the habit of regularly checking their token approvals and weeding out any they’re unhappy with. KuCoin Wallet will always help users to protect their on-chain assets.
About KuCoin Wallet
KuCoin Wallet is a secure and easy-to-use crypto wallet that supports multi-chain aggregation powered by the KuCoin ecosystem. With the security expertise of KuCoin and the leading security technology audited by Hacken, KuCoin Wallet is a self-custody wallet with users having full control of their assets. KuCoin Wallet provides the easiest way for users to manage multi-chain assets and enables them to buy, store and view NFT collections directly within the wallet. KuCoin Wallet is a gateway to the world of Web3 for all crypto users.