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Lypun eggs will appear on the trunks of trees that boarder fairy rings. These eggs start off small, about the size of a pin head, and slowly grow until they are the size of a golf ball at which point the egg will fall off the tree and hatch.
Lypuns are tiny caretakers. In Fairy World, where they are a common sight, Lypuns will cultivate and groom the various fungi found in the realm. These displays can be incredibly beautiful. Some Fae denizens will keep several Lypuns in their homes as a means of decoration, enjoying the natural beauty that the Lypun's fungi bring. In Ark Lypuns can only be found living in the trees surrounding fairy rings, but only those fairy rings that are true portals to Fairy World. Lypuns that live in Ark will spend their lives tending to their fairy rings keeping the portals stable and active.