Home Crypto The Risk of Unlimited Permissions on Token Approval in NFTs

The Risk of Unlimited Permissions on Token Approval in NFTs

by ImmuneBytes
The Risk of Unlimited Permissions on Token Approval in NFTs


In the decentralized finance (DeFi) and Non-Fungible Token (NFT) spaces, users grant permissions to dapps and smart contracts to move and manage their tokens.

However, an emerging concern in this ecosystem is the “Unlimited Permissions on Token Approval.” This vector enables potential attackers to exploit the trust users place in token approvals, leading to malicious or unintended consequences.

Example Attack Scenario

Stage 1: Interaction with the Dapp

A user interacts with a dapp (like a decentralized exchange or NFT marketplace) that requires token approval to function. This often means allowing the dapp to move or manage tokens on their behalf.

Stage 2: Granting Unlimited Approval

The dapp requests an unlimited token approval, meaning the user grants the dapp the right to manage any amount of a specific token from their wallet. This can often be disguised or presented as a one-time approval to streamline user experience.

Stage 3: Malicious Exploitation

Once granted, a malicious dapp or an attacker exploiting a vulnerability in a legitimate dapp can drain tokens from the user’s wallet up to the approved amount. This can be done without further consent from the user.

Token Approval Mechanics:

  • Token Approvals: These permissions let dapps access and transfer specific tokens from a user’s wallet. Approvals are crucial for many dapps, especially in DeFi, where tokens need to be deposited or transferred.
  • setApprovalForAll: A function in certain NFT standards (like ERC-721 and ERC-1155) that allows users to grant or revoke the ability for specific addresses to manage all of their NFTs associated with a particular contract. This can be exploited if users unknowingly grant this access to malicious actors.
  • Unlimited Approvals: Dapps might request unlimited access to simplify the process and avoid repeated approvals. While this can be convenient, it poses risks, especially if the dapp becomes compromised or if it’s malicious from the outset.

Mitigation Strategies

For Users

  • Regular Audits: Users should routinely check which dapps have approval permissions and consider reducing or revoking them if they’re no longer needed.
  • Limit Approvals: Instead of granting unlimited approvals, specify an exact amount or limit, even if it means approving transactions more frequently.
  • Use Reputable Dapps: Always use well-known and audited platforms. Scrutinize new platforms and avoid those that seem too good to be true.

For Dapp Developers

  • Transparent Permissions: Clearly inform users about the permissions they’re granting and provide easy tools to adjust or revoke them.
  • Limit by Default: Encourage limited approvals by default and ensure users knowingly and willingly grant unlimited approvals.
  • Regular Security Audits: Continuously audit the platform to detect and fix vulnerabilities.


Unlimited Permissions on Token Approval in NFTs underscores the evolving complexities and challenges in the DeFi and NFT spaces. It highlights the balance between user convenience and security.

As these sectors continue to flourish, it’s paramount for both users and developers to be aware of such vulnerabilities and work collaboratively to ensure a safer digital asset environment.

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