Defi users are familiar with interacting with various smart contracts for the purpose of swapping, staking, depositing, withdrawing, providing liquidity, opening positions or even other types of trading. Thanks to today’s blockchain technologies that make every transaction automatically executed by smart contracts, which are the vital characteristics of decentralized finance. The common feature of these transactions includes the approval of token spent in advance, and as a result, makes subsequent trades possible.
However, allowing the specific contract spending your token also brings certain risk of losing assets. In particular, the defi projects without audit and those new launched projects with code bugs or security issues usually have higher risk of exploit than the widely-used projects. Therefore, avoid to visit the fake project site is one of the methods to prevent you from scam. Moreover, make sure to revoke some smart contracts if you do not trust the specific project but have been authorized the site to spend your token.
There are a couple of defi tools that can help us to check about this. If you are a farmer of Binance Smart Chain, you may have a look at JdiYield. JdiYield is a pretty young application offering BSC farm list as well as token approval list with a clean user interface. It allows the users to check their BSC assets in the wallet together with BSC farms that they currently staked. More importantly, users can easily find which contracts are able to spend their token, so they could revoke the approval at any time.
In fact, nowadays more and more users hold multiple assets from different chains and used to interact with smart contracts. In this situation, Unrekt and DeBank are worth to take into account. Unrekt is a smart contract approval toolbox which helps users to identify all the addresses that can spend their tokens. It currently supports Ethereum, BSC, Heco and Fantom networks. Therefore, make sure to revoke any unnecessary or trustless contract approval for assets safety.
Besides, DeBank is a great integrated defi solution that provides a variety of functions with far more detailed information. It currently supports multiple blockchain inspection including Ethereum, BSC, Polygon, Fantom, OKExChain, Heco, and xDai. In other words, users with multi-chain assets mentioned above are able to check token approval of contracts and revoke them by clicking the correspondent Decline button. Best of all, project names together with the amount of risk exposure are revealed, which is likely to help users to make good decision.
The features of token approval checking tools discussed above are summarized as follows.
JdiYield: new launched tool with clean UI for BSC
Unrekt: allowance checker toolbox for multi chains
DeBank: integrated defi tool with detailed information for multi chains
Although revoking approved contract also costs a certain amount of money for gas, it is still worth to do so on a regular basis. In particular, for those who hold a large amount of assets and authorized unlimited token spending would potentially at high risk. These tools could be very useful for crypto assets management, especially for assets security.
