FIRST PRINCIPLES / 5 MIN READ

Token approvals are spending permissions

An ERC-20 approval lets a specific contract, called the spender, transfer up to an allowance from your wallet. It does not usually transfer the tokens immediately. A later transaction uses the approval. Unlimited allowances can remain active after your current task is finished.

Cook requests exact token allowances for swaps and liquidity deposits. Check the spender and amount in your wallet. LP incentive staking transfers a position NFT into the Cook staker, which records your withdrawal ownership. A token approval can remain active if you cancel a later transaction.