Definition ∞ A token allowance exploit is a security vulnerability where a malicious actor leverages a previously granted token allowance to drain a user’s digital assets without explicit transaction confirmation. This typically occurs when a user has approved a smart contract to spend a certain amount of their tokens, and that contract or an associated vulnerability is subsequently compromised. The exploit utilizes existing permissions to steal funds.
Context ∞ Token allowance exploits are a serious threat in decentralized finance, often resulting in significant user losses. Users are advised to regularly review and revoke unnecessary token allowances using dedicated tools to minimize their exposure. Security firms continuously monitor for these types of vulnerabilities and issue warnings to the community.
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