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What does “approve token spend” mean?

Updated over 3 weeks ago

Sometimes when you trade, stake, or provide liquidity, your wallet will ask you to "approve token spend". This allows Synthetix contracts to use your tokens on your behalf.

Why It’s Needed

  • Ethereum requires approval before a smart contract can move your tokens.

  • Approval lets the contract use your tokens only for the action you’ve chosen (e.g. staking SNX, trading with sUSD).

  • Without approval, the transaction won’t go through.

Is It Safe?

  • Approvals are safe when done through the official Synthetix interface.

  • The contract can only use the token you approved (not your whole wallet).

  • You can revoke approvals at any time.

Unlimited Approvals

  • Some apps ask for "unlimited" approval to save you from repeating the step.

  • While convenient, it means the contract can spend as much of that token as you hold.

  • You can limit approval amounts if you prefer more control.

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