# FAQ ### How are Flype pools different from other liquidity pools? A Flype pool consists of asset pairs including LP tokens and ETH tokens. The ETH tokens act as a bridge between pools to facilitate the seamless exchange of the LP tokens that complete the pools' pairs. ### How is the value of LP tokens calculated while Flypping? The value of LP tokens is calculated by Flype’s Interoperable Market Maker (IMM) based on the underlying assets' Oracle price together with the internal value-weighted quantities in Flype’s pool. ### How does Flype's IMM work? The Flype Market Making Algorithm, IMM, uses the concept of the Dynamic Curves, but actively adjusts the Oracle-based market price, thus creating moderated incentives for arbitrageurs to perform trades that guide pool asset quantities to equilibrium. IMM’s unique mechanism also reduces the amount of manual effort typically required for LP token swaps and reduces divergence loss as compared to standard AMMs. ### What are FLYP tokens used for? * Governance- FLYP token owners can access the governance of the platform with the right to propose new ideas and vote for existing and future implementations of protocol changes. * Determining rewards distribution- to ensure fair participation and collaboration of the FLYPE community, liquidity providers, stakers of the FLYP token, and stakers of FLYP/ETH LP tokens will receive rewards in the form of FLYP tokens. * **Native -** FLYP token holders can stake some amount of their $FLYP to get subsidized fees for their transactions in Flype pools. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://flype-protocol.gitbook.io/flype-protocol/resources/faq.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.