# Technical & Governance **Q: Why build on Ethereum Mainnet instead of a faster L1?**\ For institutional finance, settlement assurance and liquidity depth are more critical than raw TPS. Ethereum remains the global standard for high-value settlement and houses the deepest reservoirs of stablecoin liquidity. For high-frequency/low-value transactions, we are actively deploying strategy on Ethereum Layer 2s (Optimism/Arbitrum) to balance security with cost-efficiency. **Q: What is the specific role of the $PAY token?**\ $PAY is not a payment currency; it is a capital coordination asset. It governs the risk parameters of the system (e.g., which asset classes are accepted, what the Loan-to-Value ratios are). Holding $PAY aligns the interests of the community with the long-term solvency of the protocol. It is also the primary mechanism for the protocol's "Safety Module" (insurance backstop). **Q: Who can provide liquidity?**\ PayVia supports both permissioned and permissionless pools. * **Permissionless Pools:** Accessible to any wallet holder, typically capped for risk management. * **Permissioned (Institutional) Pools:** Require the LP to pass a whitelist verification (KYC/AML) to ensure compliance with regulatory standards for large-scale capital deployment. --- # 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://docs.payvia.xyz/10.-frequently-asked-questions-faq/technical-and-governance.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.