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Security Discussion: Malicious Token Contract Approvals - How to mitigate against this vulnerability? Spread tokens across different addresses?

Etherum Reddit

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So this is a scary topic I came across and didn't run across much discussion on here, which is the problem of infinite spending approvals that can be authorized by smart contracts. This is especially going to be a problem as De-Fi and various Layer 2 projects take off as we are all too used to approving different contract requests on various sites through Metamask. Even having a hardware wallet is not immune to this attack vector as it's extremely hard to catch.

Here's a good write up on the topic: https://kalis.me/unlimited-erc20-allowances/

And here's a tool to check addresses for outstanding allowances: https://revoke.cash/

Would like to hear thoughts on how to watch for this scam and best protect yourself. Perhaps it would be a good idea to spread out your assets based on smart contract usage across different ETH addresses derived from the same private key (for hardware wallet users)? eg. address #1 for de-fi project #1, another address for another de-fi project coin, and etc just to keep the various smart contracts segregated...

Thoughts?

submitted by /u/turbo5vz
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