Bounded ERC-20 Approval Before a DeFi Deposit
When a verified DeFi app requests a standard ERC-20 approval before your first deposit, authorize only the intended amount for its verified spender, then submit the deposit separately. Approval grants permission for that spender to transfer tokens from your wallet; it does not move the tokens into the app. Approval Sets Permission, Not the Deposit An approval is a separate on-chain transaction that sets an allowance: the maximum amount the specified spender may transfer from your account. The deposit is another transaction that asks the app to use tokens for the position you chose. Approval: permits the spender to transfer up to the allowance. Deposit: carries out the app’s requested operation with your tokens. Allowance remaining: shows how much permission is still available to that spender. These steps work together, but they are not interchangeable: the approval makes a later transfer possible, while the deposit initiates it. Think of approval as giving a named service a spendin...