Permit2 Explained

Permit2 is an evolution of the permit functionality allowing token transfers through signatures as part of the call data, akin to a meta-transaction. This method eliminates the necessity for an initial approve transaction followed by a transfer transaction by directly updating the token allowance with a signature. Permit2 addresses the limitation of older tokens that lack native permit functionality, which has only been introduced in recent years. By approving a singleton Permit2 contract on the Ethereum Mainnet for the maximum balance, users can subsequently authorize token transfers with individual signatures. This innovative approach streamlines the token transfer process on smart contracts, offering a more efficient and user-friendly way to interact with dApps.