DeFi wallets interact with smart contracts that can move approved tokens without further user confirmation. Unlimited approvals to protocols create persistent theft risk if contracts are exploited.

Regularly review and revoke unnecessary token approvals using reputable tools. Limit hot wallet balances used for DeFi to amounts acceptable for operational risk.

Verify contract addresses before signing transactions; phishing sites prompt approvals to malicious contracts disguised as legitimate protocols.

Post-exploit fund recovery is rarely achievable; preventive approval hygiene is the primary defense.