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  • Introducing DEIN
  • DEIN: Overview
  • Glossary
  • Onboarding Guides
    • Purchasing a Policy
    • Personalized Insurance (Demands)
      • Creating a Demand - Guide
      • Managing a Demand - Guide
      • Underwriting a Demand - Guide
      • Demand rewards - Guide
    • Underwriting a Policy Book
    • Staking DEIN tokens
    • Staking DEIN LP tokens
    • How to receive voting rewards
    • How to Vote
    • Adding a Project
  • Get Insured
    • Getting Insured
      • 👓Premium calculations
    • Policy Terms
      • 📄Smart Contract
      • 📌De-pegging
    • Personalized Insurance
      • 🎚️Profitability Meter
    • Making a Claim
    • Non-EVM Policies
  • Underwrite
    • Underwriting
      • 🎁Rewards
      • ⬅️Withdrawing funds
    • Demands
    • Adding a Policy Book
  • Govern
    • Native DEIN staking
    • DEIN LP staking
    • Voting
      • 🗒️Claim voting process
      • 🎁Reputation and reward system
      • ✅Trusted Voters
      • 👓Voting calculations
      • FAQ
  • DEIN system
    • Overview
    • Capital Pool
      • ☁️Liquidity Cushion
    • Compounded Pool
      • 📦Compounded Pool Premium pricing
    • Reward Pool
      • 👓Precise APY calculations
    • Allowance
  • Other
    • Media Kit
    • Links
    • Math stuff
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On this page
  • What is the Allowance?
  • Where is it used?
  • What is the Unlimited Allowance?
  • Is Unlimited Allowance safe?
  1. DEIN system

Allowance

What is the Allowance?

Allowance or access permissions, allow a third party to have the right to carry out a transaction of a certain amount of user's tokens, which are associated with the user's address.

Allowance costs a small amount of gas and is vital to interact with the protocol.

Where is it used?

Our protocol uses Allowance when dealing with situations involving any token that is directly residing on the user's wallet; currently only in case of:

  • USDT; when Underwriting, or paying the Premium

All other tokens require just a signature (which is free and instant).

What is the Unlimited Allowance?

To avoid the Allowance process becoming tedious or even annoying, it's possible to set an Unlimited Allowance for a particular token. Doing so will allow the user to only have to go through the Allowance process once for each type of token used.

Unlimited Allowance can greatly reduce gas fees, as it removes the need for repeatable transactions.

Is Unlimited Allowance safe?

It all depends on when, how, and by who is it used. In the case of our protocol, the simple answer is yes. However, it's a decision that all of our users need to make for themselves. As such it's never forced, both "Regular" and "Unlimited" Allowance types will always be viable for the user.

Unlimited Allowance is an advanced procedure that should be used only as a result of a conscious decision.

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Last updated 1 year ago