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DeFi

Token approvals: connecting a wallet is not the same as granting spending rights

Understand allowances, spender addresses and why disconnecting a website may not remove an on-chain permission.

CoinEditorial3 min read
Explainer · Educational content
Editorial illustration: Concept diagram for Token approvals: connecting a wallet is not the same as granting spending rights: OWNER, ALLOWANCE, SPENDER
Original CoinEditorial concept diagram; educational illustration, not live market data.
THE TAKEAWAY

Review the spender and allowance, not only the website’s name.

A separate permission

The ERC-20 interface includes allowances that let a designated spender transfer tokens up to an authorised amount using the relevant function. This differs from a website merely learning a connected wallet’s public address. The token standard describes the mechanism, but applications can present permissions in different ways. Read the actual wallet request rather than treating every prompt as a harmless login.

An allowance example

Imagine approving a fictional application to spend 100 units of one token. That authorisation is about a specific token contract and spender, not a universal statement about every asset in the wallet. An unlimited allowance creates a different exposure from a tightly bounded amount. The example is conceptual; actual behaviour depends on the token and the mechanism the application uses.

Disconnecting is not revoking

Removing a site from a wallet’s connected-sites list normally changes the browser connection, not an existing on-chain allowance. Revocation requires the appropriate state change and may incur a network fee. Signed permission mechanisms can have separate rules, so a simple approvals screen may not describe every outstanding authorisation. Use trusted documentation and avoid unfamiliar “revoke” links sent in private messages.

A permission review habit

Confirm the network, token, spender, amount and purpose before approving. After using an application, review permissions you no longer need through a trusted interface. Never share keys with someone offering to clean up approvals. If the wallet preview is unclear, stop and investigate. The useful distinction is between viewing an address, signing a message and granting authority to move assets; these actions do not carry the same consequences.

Sources & further reading

Sources checked 7 October 2026. Source-linked explanatory content; not personalised investment advice. Found an error? Request a correction.

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