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Using Dynamo Finance requires interacting with your Web3 wallet at several points. Understanding exactly what each action authorizes helps you stay in control and make informed decisions.

Connecting your wallet

When you click Connect wallet and approve the connection:
  • Dynamo reads your wallet address and on-chain balances.
  • Dynamo cannot move your funds, sign transactions, or take any action on your behalf.
  • You can disconnect your wallet at any time from within the app or your wallet’s connected sites settings.
Connecting a wallet is a read-only action. No funds can be moved until you explicitly sign a transaction.

Token approvals

Before you can deposit a token into a Morpho market or vault, you must grant the smart contract permission to spend that token.

What it does

A token approval tells the ERC-20 token contract: “I allow this smart contract address to spend up to X amount of my tokens.”

What to check

Always verify:
  1. The contract address — confirm it matches the official Morpho contract for that market.
  2. The approval amount — Dynamo requests the minimum needed. Be cautious of unlimited approvals if you prefer to limit exposure.
Never approve a contract address you don’t recognize. Only interact with contracts displayed in the official Dynamo app at dynamo.finance.

Transaction signatures

Every action that changes your on-chain position requires you to sign a transaction:
ActionWhat you sign
Supply / depositTransfer tokens from your wallet to the Morpho contract
BorrowInstruct the Morpho contract to send borrowed tokens to your wallet
RepayTransfer tokens from your wallet back to the Morpho contract
WithdrawInstruct the Morpho contract to return your supplied tokens
Vault depositTransfer tokens to the vault contract
Vault withdrawalRedeem vault shares for underlying tokens
Each transaction is broadcast to the blockchain and requires a small gas fee.

Permit signatures (gasless approvals)

Some tokens support EIP-2612 permits, a type of off-chain signature that grants a spending approval without an on-chain transaction. Dynamo uses permits where available to save you gas.
  • Permit signatures look like a regular wallet pop-up but do not broadcast a transaction.
  • They are single-use and expire after a short time window.
  • They grant approval only for the specific action you are about to take.

Permit2

Dynamo also supports Permit2, Uniswap’s universal approval contract, for tokens that don’t natively support EIP-2612 permits.
  • Permit2 works as an intermediary: you grant a one-time approval to the Permit2 contract, then all subsequent per-action approvals are off-chain signatures.
  • This means you only need one on-chain approval per token (to Permit2) instead of a separate on-chain transaction for every new protocol you use.
  • Individual action permits are still single-use and time-limited, just like EIP-2612 permits.
Permit2 approvals are to the Permit2 contract address (0x000000000022D473030F116dDEE9F6B43aC78BA3), not directly to Morpho or Dynamo contracts.

Morpho Bundler Authorization

For more complex multi-step transactions (e.g., supplying collateral and borrowing in a single click), Dynamo uses the Morpho Bundler, a smart contract that batches multiple Morpho operations into one transaction. To use the bundler, you grant it a one-time authorization in Morpho’s contract. This authorization allows the bundler to act on your behalf within Morpho for the duration of a batched transaction. Key points:
  • The authorization is scoped to the bundler contract address only.
  • It does not give the bundler (or Dynamo) ongoing access to move your funds at will, each bundled transaction still requires your signature.
  • You can revoke bundler authorization at any time by calling the Morpho contract directly or using a supported revocation tool.
Permission typeOn-chain?Scope
Wallet connectionNoRead-only
ERC-20 token approvalYesSpecific contract, specific token
Permit2 approvalYes (one-time)Permit2 contract for a specific token
EIP-2612 / Permit2 action permitNoSingle action, time-limited
Morpho bundler authorizationYes (one-time)Batched operations via bundler

What Dynamo can never do

  • Move funds without your explicit signature on each transaction.
  • Change your wallet’s private keys or seed phrase.
  • Access wallets you have not connected.
  • Override or cancel a transaction once it is confirmed on-chain.

Revoking approvals

If you want to remove a previously granted token approval, you can do so using any token approval management tool (such as revoke.cash):
  1. Connect your wallet to the approval manager.
  2. Find the approval for the relevant Morpho contract.
  3. Submit a revocation transaction (requires a small gas fee).
Periodically reviewing and revoking unused approvals is a good security hygiene practice, even for reputable protocols.