About Approve

Ritu13

The "Approve" operation signifies granting token transfer permissions to a target contract for the purpose of executing transactions automatically. This is commonly used in DEX trading authorizations. For wallets, it is crucial to support the display of approval details and the ability to modify approval limits and durations. This helps prevent the escalation of funds risk due to unlimited approval limits. It is advisable to authorize only the required quantity for each transaction.

Regarding the scenario where "Approve" authorization is granted to an externally owned account (EOA) individual address, it's important to be cautious due to the heightened risk of phishing scams associated with this operation. "Approve" is more commonly used to authorize smart contract addresses, and granting approvals to individual addresses is an unconventional practice. Wallets should be capable of intelligently recognizing such scenarios and providing relevant risk warnings.