Revoke your smart contract approvals ASAP, crypto investor warns

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In the wake of the worst year for crypto hacks and exploits, the crypto community has issued some advice for newbie investors entering 2023, check your smart contract approvals and revoke access regularly.

Reddit user 4cademy posted his advice on the r/CryptoCurrency subreddit on January 1, noting that he had approved a series of smart contracts over a two-year period and thought it was time to check my contracts. approved smarts.

They found that almost all of their approvals were for unlimited amounts,” prompting them to revoke approvals for all smart contracts in their portfolio as prevention is better than cure, and advised:

You should at least check your approvals as well and possibly revoke them.

The reason for this is that some decentralized finance (DeFi) or non-fungible token (NFT) protocol users might have mistakenly approved malicious smart contracts from phishing attempts that might be on the prowl to steal the funds from the users.

Such ice phishing scams have been successful in the past, with one such elaborate month-long scam involving an offer from a fake movie studio leading to 14 Bored Ape Yacht Club (BAYC) NFTs stolen from a single wallet.

Even known good conduct contracts should be revoked as hackers could find exploits to steal funds from connected wallets.

The 10 biggest exploits in 2022 saw an estimated $2.1 billion stolen primarily in DeFi protocols and cross-chain bridges where attackers found vulnerabilities in existing smart contracts to carry out their heists.

Related: Developers Must Stop Crypto Hackers Or Face Regulation In 2023

The user offered other advice, saying to use different wallets for different purposes, such as having a wallet that only interacts with smart contracts and another that is not used for the sole purpose of holding funds.

Users commenting on the post also suggested scheduling a recurring interval to revoke all smart contract approvals, for example on the 1st of every month or even at the start of every week.

Others have suggested that there are third-party services that could verify and revoke smart contract approvals across a number of chains, including BNB Smart Chain, Ethereum, and Polygon.

One user replied that the best advice is to interact with as few smart contracts as possible, saying that revoking permissions is good practice, but not giving permissions is better.

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