In today's decentralized finance (DeFi) ecosystem, token authorization management has always been a major challenge faced by users. According to a report by smart contract security company Dedaub, the current unlimited authorization risk for the top 20 tokens on Ethereum is as high as $6.5 billion. Situations like this make many users uneasy when making transactions, as they need to constantly review authorizations and use tools like revoke.cash to revoke authorizations, or risk losing their funds. Since 2020, more than $405 million has been stolen due to authorization vulnerabilities.
The Dark Side of Token Delegation
When users conduct transactions on the new application, they first need to authorize tokens. This process forces users to consider multiple factors, including the security of the application, whether funds will be stolen, and whether they need to change wallets. These concerns undoubtedly increase the friction of user transactions and affect the overall experience.
In the world of cryptocurrency, the risk of hacking is ever-present. The traditional ERC20 token authorization method carries huge risks. Unlimited authorization means that applications can access the entire token balance indefinitely. In the event of a security breach, users' funds could be quickly siphoned off, which is a risk that cannot be ignored for any developer.
According to Dedaub data, the total token authorization for upgradeable contracts in DeFi is as high as $7.5 billion. Such risks make many developers worried when creating applications. Even the best teams can be affected by security vulnerabilities, and this is something developers must take seriously.
0x V2: A secure authorization solution
In order to protect the security of users' funds, the 0x team has completely eliminated authorization risks in its newly designed smart contracts and introduced the latest innovations in limited token authorization, including Permit2. Permit2 is a token authorization method that can securely share and manage token authorizations between different smart contracts.
The design of Permit2 consists of two main parts. The most commonly used part is AllowanceTransfer, which relieves users of the burden of managing token authorization and allows contracts to authorize within a specific time and value range. The other part, SignatureTransfer, allows authorization not only limited by time and value, but also for single use, which almost reduces the authorization risk to zero.
How Permit2 works
The features of Permit2 make it a secure authorization solution. Here's how it works:
Time-limited authorization: Users can set the validity period of the authorization, so that even if the contract is attacked, the user's funds will not be exposed to risks indefinitely.
Single-use authorization: This feature allows users to generate a new authorization for each transaction, further reducing the risk of fund theft.
Simplified authorization management: Users do not need to withdraw authorization frequently, reducing the possibility of fund losses due to improper management.
Why Choose ZRX Token?
As the native token of the 0x protocol, ZRX token is designed to facilitate the operation of decentralized exchanges. With the rapid development of DeFi, the demand for ZRX tokens is also rising. The main reasons for choosing ZRX tokens are as follows:
Security: With the introduction of Permit2, the authorization risk of ZRX tokens has been greatly reduced, and users can conduct transactions with more confidence.
Liquidity: ZRX tokens are traded on multiple decentralized exchanges, providing good liquidity.
Community support: ZRX has an active developer community that continues to promote innovation and development of the protocol.
in conclusion
With the development of the DeFi ecosystem, the security of token authorization has become one of the most concerning issues for users. The risk of unlimited authorization not only threatens the financial security of individual users, but also affects the trust of the entire ecosystem. The launch of 0x V2 effectively solves this problem through the innovative design of Permit2, providing users with a safer trading environment.
In the future, with the emergence of more security technologies and solutions, DeFi will be able to better protect users’ funds and promote the healthy development of the entire industry. Choosing ZRX tokens is not only a safe choice, but also a trust in the future DeFi ecosystem.