Pancakeswap pair Approval event

Hi everyone, what exactly is the approval event (topic0: 0x8c5be1e5ebec7d5bd14f71427d1e84f3dd0314c0f7b2291e5b200ac8c7c3b925)? unable to find much info about it to understand what it's needed for - I would intuitively think that it's approval for trade but able to find many tokens where this isn't the case. Alternatively it might be for approval for trade from some smart contracts (but not required for non-smart contract LP holdings?) but I'm not sure.

Thanks for any explanation

Well if you approve tokens to a wallet you allow a contract or user to acces your funds and send them anywere. Something like a LP doesn't need approval but the router. The router uses the transferFrom to get your tokens to LP and then the router sends the LP tokens to you.
Only the router needs approval.