Nursery

1.“Once $sKITTYs are emitted, does the Nursery stop printing $KITTY until we are above peg again?”

Staking $CAT's will give you $KITTY'S rewards when the price of $KITTY is above the peg (1 $KITTY : 1 $AVAX), but not when it is under the peg.

2."What happens if I interact with the Nursery in any way?"

Any interaction with the Nursery will reset both timers. That's 3 epochs (18 hours) to withdraw your $KITTY rewards, and 6 epochs to unstake your $CAT (36 hours).

3. “Are the Nursery rewards pro-rated by time? I.e. if I stake three hours before the end of an epoch vs five hours before the end of an epoch, do I get different rewards?”

No, it's determined by how much you have staked at the time of printing (i.e. end of one epoch and start of the other). It doesn't matter if you stake 3 hours before or 30 seconds before the emissions occur.

4. "If I remove my $CAT from Nursery without first collecting my $KITTY, will it be lost forever?"

No, it will still be there to collect whenever you need.

5. "The Nursery APR dropped because we're in a 'debt phase'. What does this mean?"

A debt phase takes place on the expansion epochs that start after a contraction period where there are still $sKITTY to be redeemed.

65% of expansion during debt phase is allocated to the treasury fund to prepare for the $sKITTY redemption. This amount is still reserved whether or not $sKITTY holders are redeeming bonds or not.

Once $KITTY in treasury is sufficiently full to meet all circulating bond redemption, expansion rates will resume to normal.

6. "If we're in a debt phase, how long will it last until the Nursery continues printing as normal?"

The debt phase will last as long as is necessary to adequately pay back outstanding $sKITTY debt. Please keep in mind that the DAO will also need to collect a little extra, as there needs to be a cushion to cover the bonuses when people redeem $sKITTY over peg. There's no exact way of calculating how many epochs it takes, since we don't know exactly when people will redeem their $sKITTY. If the debt phase is ended too early, and then the treasury doesn't have enough $KITTY to repay the $sKITTY bonus, then the APR restriction would need to be turned back on.

7. "At the end of the epoch, the Nursery did not print $KITTY, and then no $sKITTY(s) were issued in the NAP. Why?"

There is a balanced state "at peg" when $KITTY's TWAP is between 1.00 and 1.01, and this means there is neither contraction nor inflation.

8. "If $KITTY continues climbing above the price of the peg, will that influence how long the debt epoch lasts?"

Depending on the price of $KITTY, the Boardroom print will have to adjust to provide a buffer for any unclaimed $sKITTY. As the price of $KITTY climbs above the peg, more $KITTY needs to be distributed to the treasury to account for $sKITTY bonus redemption.