$sKITTY Mechanism

What is $sKITTY?

$sKITTY or Sleepy Kitty are unique tokens that can be utilised to help stabilise $KITTY price around peg (1 $KITTY = 1 $AVAX) by reducing circulating supply of $KITTY if the time weighted average price (TWAP) goes below peg (1 $KITTY = 1 $AVAX).

When can I buy $sKITTY?

$sKITTY can be purchased only on contraction periods, when the TWAP of $KITTY is below 1.

Every new epoch on contraction periods, $sKITTYs are issued in the amount of 3% of current $KITTY circulating supply, with a max debt amount of 35%. This means that if bonds reach 35% of circulating supply of $KITTY, no more bonds will be issued.

Note: $sKITTY TWAP is based on $KITTY price TWAP from the previous epoch as it ends. This means that $KITTY TWAP is real-time and $sKITTY TWAP is not.

Where can I buy $sKITTY?

You can buy $sKITTYs if any are available, through kittyfinance.io. Anyone can buy as many $sKITTYs as they want as long as they have enough $KITTY to pay for them.

There is a limit amount (3% of $KITTY current circulating supply) of available $sKITTY per epoch while on contraction periods, and are sold as first come first serve.

Why should I buy $sKITTY (bonds)?

The first and most important reason is bonds help maintain the peg, but will not be the only measure use to keep the protocol on track. We also have a DAO fund which will step in and buy $KITTY to get it back to peg.

$sKITTYs don't have a expiration date, so you can view them as a investment on the protocol, because longterm you get benefits from holding bonds.

Incentives for holding $sKITTY

The idea is to reward $sKITTY buyers for helping the protocol, while also protecting the protocol from being manipulated from big players.