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How to deal with token approval risks?

Token approvals are essential for the operation of many decentralized applications (dApps), But there are also risks to token approvals. One of the risks of token approvals is that the smart contract you are granting approval to can be hacked. It has happened multiple times in the past that established projects get hacked. In these cases, if you've given any approvals to the hacked smart contract, your tokens can be stolen.

Handling token approval risks​

You can mitigate risks by regularly inspecting and managing token approvals using the following methods:

Method 1: In MPCVault​

MPCVault has introduced the approval check viewer. You can view and revoke any approved authorizations from the dashboard. Follow these steps:

  1. Visit console.mpcvault.com

  2. Navigate to the Wallets page.

  3. Find the token for which you want to inspect or revoke approvals and click the "x approval" button.

  4. In the approval risks popup, you can see a list of approved contracts. To revoke an approval, click the "Revoke" button to submit a "Custom transaction" signing request.

  5. Go to MPCVault app to approve and sign this request.

    Docusaurus Plushie

Method 2: In Revoke​

You can access Revoke via the " View approval risks " button to view and manage approvals for all tokens in your wallet. Here are the steps:

  1. Navigate to the Wallets page in MPCVault.

  2. Find the wallet you want to review.

  3. Click the "View approval risks" button to go to Revoke. On the homepage, you'll see a list of all token approvals.

  4. To revoke or modify token approval amounts, please connect the relevant wallet and and perform the operation.

    Docusaurus Plushie

tip

To maintain better security, it is recommended that you:

  1. Regularly check approvals : Periodically (e.g., monthly) review your token approvals, especially after frequent interactions with new contracts or dApps.
  2. Revoke unused authorizations : Immediately cancel any approvals that are outdated or no longer in use.
  3. Carefully review new approvals : Thoroughly review new token approvals to avoid setting excessively high approved limits.