Contractions & $sKITTY

The NAP (Naptime)

If your $KITTY is tired (Below peg) go and put it to sleep at the NAP! Exchange $KITTY for Sleepy Kitty ($sKITTY) Redeem after peg is above 1.1 to receive bonus energised $KITTY!

1. "When can I swap $KITTY for $sKITTY?"

$sKITTY will only become available in the NAP following epochs in which the Time Weighted Average Price (TWAP) of $KITTY is under peg. This means that $KITTY's price will have had to have been under 1 $AVAX per 1 $KITTY for the majority of the previous epoch in order to trigger the NAP to "open".

The NAP will always open at the very beginning of a new epoch, and remain open for the entire epoch. The NAP cannot and will never open mid-epoch, and during epochs in which the NAP is open, $KITTY will not be printed in the Nursery.

2. "What is the formula to calculate the redemption bonus for $sKITTY?"

To encourage redemption of $sKITTY for $KITTY when $KITTY's TWAP > 1.1, and in order to incentivise users to redeem at a higher price, $sKITTY redemption will be more profitable with a higher $KITTY TWAP value. The $sKITTY to $KITTY ratio will be 1 : R, where R can be calculated in the formula as shown below:

R= 1 +[ ($KITTY TWAP price) -1 ) * coeff ) ]

coeff =0.7

To further illustrate why the longer you hold $sKITTY the more profitable it is, let's take an initial $1000 investment into consideration. In this example, say this $1000 is used to buy $KITTY when $KITTY TWAP is 0.95 and then swapped for $sKITTY.

If these $sKITTY are redeemed when:

• $KITTY TWAP is 1.5, your investment would now be worth $1421.

• $KITTY TWAP is 2, your investment would now be worth $1789.

• $KITTY TWAP is 3, your investment would now be worth $2526.

• $KITTY TWAP is 5, your investment would now be worth $4000.