When engaging in certain swap trades, users are required to execute a separate "Approve" transaction. These include:
ERC20 to ETH
ERC20 to ERC20
BEP20 to BNB
BEP20 to BEP20
The Approve transaction is a cost-effective action, serving as user permission for the DEX to deduct an approved amount of ERC20/BEP20 tokens to facilitate a trade.
Key points regarding Approve transactions:
Cost: Generally inexpensive to execute.
- Purpose: Grants permission for the DEX to debit an approved amount of ERC20/BEP20 tokens for trade execution.
- Amount Indication: Users can specify the amount of tokens the DEX is allowed to debit during the Approve transaction.
- Advance Approval: Users can approve higher amounts in advance, anticipating future trades to avoid additional Approve transactions.
- Failure Risk: Approving a lower amount than required by a trade will result in transaction failure.
By understanding and managing approved transactions appropriately, users can streamline the process and ensure the necessary permissions are in place for successful swap trades.