Wrapped assets · 5 min read
Token Approvals and Wrapped Assets
Why using wrapped tokens in Monad apps often requires an approval, and how to keep allowances under control.
Why approvals exist
ERC-20 tokens — including wrapped ones — require you to approve a contract before it can move them on your behalf. This is the step before a swap, a deposit, or a bridge transfer.
Limited versus unlimited
Many apps request an unlimited allowance for convenience. If that contract is later exploited, the allowance can be used against you. Setting an exact amount costs an extra transaction next time but limits exposure.
Cleaning up
Periodically review and revoke allowances with a trusted tool. Revoking does not recover funds already moved, but it closes the door going forward.
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