> For the complete documentation index, see [llms.txt](https://kittyfinance.gitbook.io/about/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://kittyfinance.gitbook.io/about/big-picture.md).

# Big Picture

The $KITTY algorithmic token serves as the backbone of a rapidly growing ecosystem aimed towards bringing liquidity and new use cases to the **AVAX and MATIC** networks.

The protocol's underlying mechanism dynamically adjusts $KITTY's supply, pushing its price up or down relative to the price of $AVAX or $MATIC (depending on the network the $KITTY is on).

Based on tomb.finance, which was originally inspired by the idea behind Basis as well as its predecessors (bDollar and Soup), Kitty Finance is a multi-token protocol which consists of the **following three tokens**:

* $KITTY (Kitty Finance main token).
* $CAT (Kitty Finance shares).
* $sKITTY - Sleepy Kitty (Kitty Finance bonds).

### **What differentiates $KITTY from other algorithmic tokens?**

Unlike previous algorithmic tokens, $KITTY is not pegged to a stablecoin. It is instead pegged to $AVAX or $MATIC (depending on which network you are on). 

Because of the high-per-coin $AVAX price, we have decided to peg $KITTY to $AVAX at a 1:1 ratio. In other words, 1 $KITTY should equal 1 $AVAX for our peg to be maintained. 

Alternatively, there is the $MATIC option, where 1 $KITTY is pegged to 1 $MATIC. This was to offer another option on another lower-cost network. 

One of the primary shortcomings of past algorithmic tokens has been a lack of use cases, leaving no good reason for somebody to want to use or hold them. In order to successfully maintain the peg in the long-run, the Kitty Finance team will maintain a focus on innovation around enhanced functionality and use cases.