Crypto fundamentals

Plain-English answers to the questions people new to crypto ask before and while using Aero. For questions specific to trading on Aero, see the Trading FAQ.

Wallets and getting connected

What is a crypto wallet?

A wallet is the app that holds your crypto and lets you approve actions on a blockchain. It stores the keys that prove the funds are yours and signs transactions when you confirm them. Common wallets include browser extensions and mobile apps; you install one, then use it to connect to apps like Aero.

What is a seed phrase or recovery phrase?

It's the list of 12 or 24 words your wallet shows you when you first set it up. Those words are the master backup for your wallet. Anyone who has them controls your funds, and there is no reset button. Write them down offline, store them somewhere safe, and never type them into a website or share them with anyone.

How do I connect my wallet to Aero?

Open the Aero app and select Connect (usually top right), then pick your wallet from the list and approve the connection request in your wallet. Connecting only lets the app see your public address and ask you to sign transactions. See Getting started on Aero.

Does connecting my wallet give Aero access to my funds?

No. Connecting shares your public address so the app can show your balances and build transactions for you. Every action that moves a token still has to be signed by you in your wallet, and you can disconnect at any time.

I connected the wrong wallet. How do I switch?

Disconnect from inside the app (select your address, then Disconnect), or switch the active account in your wallet, then reconnect. Some wallets let you choose which account to share at the moment you connect. See Getting started on Aero.

Tokens, networks, and gas

What is a token?

A token is a unit of value that lives on a blockchain. It can represent a currency, a stake in a pool, a reward, or almost anything else. AERO and sAERO are examples of tokens.

What is a stablecoin?

A stablecoin is a token designed to track the value of something stable, such as the US Dollar. People use stablecoins to hold value without the price swings of other crypto, and to trade in and out of positions. Common examples are USDC and USDT.

What is a blockchain network or "chain"?

A blockchain is the shared ledger that records every transaction, and a "network" or "chain" is one such ledger. Ethereum, Base, and others are separate chains. Aero runs across multiple chains, so the chain you are on affects which tokens and pools you see.

What is gas, and why do I pay it?

Gas is the fee you pay to the network to process your transaction. Gas rises when the network is busy and falls when it's quiet, which is why the same action can cost more at some times than others.

I'm on the wrong network. What do I do?

Switch networks in your wallet, or approve the network-switch prompt the app shows you. Your balances don't move when you switch; you're just changing which chain the app is reading. If you don't see a token you expect, you're often simply connected to a different chain than the one it's on.

What is bridging?

Bridging moves a token from one chain to another, since each chain keeps its own separate balances. On Aero, a swap between tokens on two different chains is handled in a single confirmation. See Trading and Swaps.

Transactions

What happens when I confirm a transaction?

Your wallet signs the transaction with your key and broadcasts it to the network, which then validates and records it. Until it's recorded it's "pending," once recorded it's confirmed and can't be undone. You'll usually see a confirmation in the app and in your wallet within seconds to a minute, depending on the network.

Are crypto transactions reversible?

No. Once a transaction is confirmed on a blockchain it's permanent, and there's no support line that can claw it back. This is why it's worth double-checking the address, amount, and network before you confirm anything.

Costs, trading, and DeFi terms

What is DeFi?

DeFi (decentralized finance) is financial activity, such as trading, lending, and earning, run by public smart contracts instead of a company. You keep custody of your funds in your own wallet and interact with the contracts directly. Aero is a DeFi protocol.

What is a DEX, and how is it different from an exchange like Coinbase?

A DEX (decentralized exchange) lets people trade tokens directly from their own wallets through smart contracts, with no company holding the funds. A centralized exchange like Coinbase holds your crypto for you and matches trades on its own systems. On a DEX you trade against pools of liquidity supplied by other users rather than an order book run by a company. See About Aero.

What is a liquidity pool?

A liquidity pool is a shared pot of two tokens that traders swap against, supplied by people called liquidity providers. Instead of matching a buyer to a seller, a swap takes one token from the pool and adds the other. The providers earn from the activity in return for supplying the tokens. See Providing Liquidity.

What is slippage?

Slippage is the difference between the price you're quoted and the price you actually get, because the market can move between the two. You set a slippage tolerance, the most movement you'll accept, and if the price would move past it, the swap is canceled instead of filling at a worse rate. Aero defaults this to AUTO, and you can set it manually. See Trading and Swaps.

What is price impact?

Price impact is how much your own trade moves a pool's price. Large trades against a pool with little liquidity move the price more, so you receive proportionally less. It's shown in the quote details, separate from the swap fee. See Trading and Swaps.

What does it mean to provide liquidity?

Providing liquidity means depositing a pair of tokens into a pool so others can trade against them. In return you earn a share of the pool's activity. On Aero you choose whether a deposit earns trading fees (Fee-earning) or AERO Rewards (AERO-earning). See Providing Liquidity.

What is staking?

In general, staking means committing a token for a period in exchange for rewards or rights in a protocol. On Aero specifically, staking is converting AERO into sAERO, which you then use to allocate AERO Rewards across pools and to earn Exchange Revenue. See Staking.

What does APR or APY mean?

APR and APY both express a yield as a yearly percentage. APR is the simple annual rate; APY assumes earnings are compounded over the year, so it's usually a bit higher. Both are estimates that move with market activity, not guaranteed returns.

Safety and scams

How do I keep my wallet safe?

Never share or type your recovery phrase anywhere. No legitimate app, support agent, or team member will ever ask for it. Bookmark the real app address and use the bookmark rather than search results or links from messages. Treat unexpected DMs, giveaways, and "support" outreach as scams by default.

Someone messaged me offering support or asking for my seed phrase. Is that real?

No. Real support will never DM you first, and no one legitimate ever needs your recovery phrase or private keys. Scammers impersonate teams and "helpers" in comments and direct messages, especially right after you post about a problem. Only use official channels you reached out to yourself. See Security.

Advanced

What is a smart contract?

A smart contract is code deployed on a blockchain that runs exactly as written when called, with no company operating it. Apps like Aero are made of smart contracts, which is why you interact with them directly from your wallet. Because the code is public and permanent, security reviews of it matter. See Security.

What does it mean that a protocol is "audited"?

An audit is a security review of a protocol's smart contracts by an outside firm. Outside firms are hired to run security reviews in an attempt to catch issues before launch. Treat audits as one signal among several, not a promise. See Security.

What is impermanent loss?

Impermanent loss is the gap between holding two tokens in a pool versus just holding them in your wallet, which appears when their prices move apart. It's called impermanent because it narrows if prices return to where you started, and it's only realized when you withdraw. The fees and rewards a deposit earns are what offset it. See Providing Liquidity.

What are wrapped tokens (like WETH)?

A wrapped token is a tokenized stand-in for another asset so it fits a standard interface. WETH, for instance, is ETH packaged as an ERC-20 so it behaves like other tokens in pools and contracts. It's redeemable one-for-one for the underlying asset. Apps often wrap and unwrap it for you as part of an action. See Trading.