Risk attached with approve transaction on DAPP and DEX like uniswap

[int03h]

I think there are risks involved in trading on DEXs.
1. many new projects are not well appraised when they are traded on these DEXs. They are mostly DEFI-related projects with anonymous teams and a high risk of investing.
2. Tokens easily devalue deeply or push up too high due to a low liquidity pool.
3. In addition to Uniswap, the new DEXs may be vulnerable to source code vulnerabilities. There are some scam projects and they took away the money that the investor deposited in the liquidity pool.

[jrrsparkles]

If you didn't authorize the smart contract to get the access to unlimited funds then there will be no issues I guess.Anything related to cryptos holding risk and if it is decentralized still it has got bugs due to the development process.

[Nalbo]

That's the reason why you should not give authorization to the exchanges and sites you don't trust or that are fairly new to the industry. Most of the popular dex and dapps have an extensively tested smart contract. And there are nearly no any mistakes made from the side of smart contract as they works the same way without any modifications. Most of the time the error occurs due to insufficient fees or tokens.

[GrosWesh]

from my point of view, you should approve only what you are planning to spend in the liquidity pool, no more than that, or a little more, certainly not unlimited amount

other precaution is to use different wallet for liquidity pool and put only money that you plan to use in LP on this wallet, and withdraw all money from that wallet, after you remove it from liquidity pool, it is a very risky and uncertain market, and people should proceed with caution

Yes that option i already have mentioned in my post. But on uniswap it approve infinite number of token, we do not have option to enter it manually. You need to do it through smart contract on etherscan which is risky and complicated for most of people as process need knowledge.

Also i am looking for any other option we have? is there any way to swap without approval like etherdelta? why it need approval, cant they have option to swap it without approval?

Uniswap might be safe but this trend is risky as we need to trust the smart contract everytime we will approve our tokens for any other contract.

Lets see in V3 hope such issues will be taken care of.

Hi,

I allow myself to dig up this thread: it is not possible, indeed, to pay the approved amount directly on uniswap (for the moment) but before validating the action on metamask you have the possibility to approve a specific amount as shown in the following screenshot:





In addition, I would like to draw your attention to the fact that there are at least two possibilities to edit the given permissions:



1 - Token checker allowance:

https://tac.dappstar.io/

It seems that another project (MathWallet) took the idea of ​​'Token checker allowance' and adapted it for Bsc (Binance chain). I specify that I have not tested this one.

https://twitter.com/MathWallet/status/1310877806264422401



A little reading to understand why this is so important :

https://cryptotesters.com/blog/token-allowances



2 - https://approved.zone/

Works on the same principle as tca. (Except we can only erase autorisation, and not set a new value)

According to the following tweet, this project would come from the '1 Inch exchange' team.

https://twitter.com/1inchExchange/status/1273508633570140162



I am sharing a few ideas here, however do your own research

[fortebettor]

I think there are risks involved in trading on DEXs.
1. many new projects are not well appraised when they are traded on these DEXs. They are mostly DEFI-related projects with anonymous teams and a high risk of investing.
2. Tokens easily devalue deeply or push up too high due to a low liquidity pool.
3. In addition to Uniswap, the new DEXs may be vulnerable to source code vulnerabilities. There are some scam projects and they took away the money that the investor deposited in the liquidity pool.

ad3
If you provide such information, please give specifics. What exactly are the projects and in what way? Don't you think it should be done. But I don't think you have any proof of that, although I'm curious.

[bitcon]

Working in the DeFi sector, you need to understand and accept the presence of certain risks. But the Uniswap project, in my opinion, does not cause concern, if you follow all the traditional precautions. But all the same, it is better not to forget about your own safety. DeFi is still full of scammers.