One quiet night, I decided to park some idle crypto in a collateral protocol. I clicked “deposit” and my wallet popped up with a single word: approve. Approve what, exactly? That moment of hesitation is where wallet risk begins. In most DeFi apps, you’re not sending tokens—you’re granting permission. A smart contract can only move your tokens if you’ve explicitly allowed it.
Falcon Finance (FF) operates this way: you can post collateral to mint USDf or stake it for yield—but the protocol can’t touch your funds without your approval first. This applies to most ERC-20 tokens—stablecoins, altcoins, wrapped assets. Even if you think you never approved anything, chances are you have—just not for your main-chain coins.
The Hidden Risk: Wallet Defaults
Many wallets set unlimited allowances by default, which never expire. One click today could let a contract move your funds months later. Hack or accidental misuse? Funds vanish, and users exclaim, “I never sent anything”—but that old approval gave access long ago.
Wallet Hygiene 101
Check your approvals: Tools like Revoke.cash or Etherscan show which contracts can spend your tokens. Expect surprises from old apps, games, or random mints.
Limit allowances: Approve only what’s needed. Depositing 500 USDC? Approve 500, not your entire balance. This small step transforms full-risk exposure into a controlled action.
Revoke unused permissions: Setting allowances to zero prevents unwanted spending. Minimal gas, big peace of mind. Make it a monthly habit.
Extra Safety Tips
One deposit can touch multiple contracts (minting, staking, routers). Don’t trust names—verify addresses and tokens.
Split wallets: Use one “vault” for main funds and a daily wallet for routine activity. Keep the core clean even if the day-to-day wallet gets messy.
Falcon also enhances safety with multi-sig and MPC solutions, but personal vigilance is key. Approvals aren’t bad—they’re necessary tools. Left unchecked, though, they become a risk. Manage them, limit them, revoke them, and sleep easier at night.
