EIP2612 Signed token approvals

This doc is a sum up of EIP 2612 and an overview of Permits

Intro

Approve the message to allow dApp to spend a token. This is a human-readable signature instead of normal signatures, which are just a bunch of binary data (readable by computers).

712 can be used without 2612 712 defines a format for signatures 2612 defines a smart contract interface

Simple explanation

ELI5 explanation: Permits are permissions that send the approved TX to allow dApp to use/spend your tokens. Example: Uniswap asks you to use DAI in order to swap DAI for some other token.

Functions

This ERC proposes an alternative solution that is designed to be as minimal as possible and to only address one problem: the lack of abstraction in the ERC-20 approve method.

While it may be tempting to introduce *_by_signature counterparts for every ERC-20 function, they are intentionally left out of this ERC-20 for two reasons:

• the desired specifics of such functions, such as decision regarding fees for transfer_by_signature, possible batching algorithms, varies depending on the use case, and,

• they can be implemented using a combination of permit and additional helper contracts without loss of generality.

Discussion regarding this standard: https://github.com/ethereum/EIPs/issues/2613 Full implementation: https://eips.ethereum.org/EIPS/eip-2612