# Tokens

### $**KITTY - Kitty Finance Token**

**Contract:** `0x182dB1252C39073eeC9d743F13b5eeb80FDE314e` 

The $KITTY token is designed to be used as a medium of exchange. The built-in stability mechanism of the protocol aims to maintain $KITTY's peg of 1 $KITTY = 1 $MATIC in the long run.

Note that $KITTY **actively pegs via the algorithm**. This **does not mean** it will be valued at 1 $KITTY:1 $MATIC at all times, as it is not collateralised. $KITTY is not to be confused for a crypto or fiat-backed stablecoin.

### **$CAT -  Kitty Finance Shares**

**Contract:** `0xB932D203f83B8417Be0F61D9dAFad09cc24a4715`

**$wCAT Contract**: `0x292B7e5d83aae5fbEDEa8Bee792Dfdf0Af0C7103`

$CAT tokens are one of the ways to measure the value of the Kitty Finance Protocol and shareholder trust in its ability to maintain $KITTY close to peg. During epoch expansions the protocol mints $KITTY and distributes it proportionally to all $CAT holders who have staked their tokens in the Nursery.

$CAT holders have voting rights (governance) on proposals to improve the protocol and future use cases within the Kitty Finance ecosystem.

$CAT has a **maximum total supply of 67901** tokens distributed as follows:

* *DAO Allocation:* 7875 $CAT vested linearly 12 months.
* *Team Allocation:* 525 $CAT vested linearly over 12 months.
* *Dev Allocation:* 2100 $CAT vested linearly over 12 months.
* *Rewards:* 59500 $CAT are allocated for incentivising liquidity providers in liquidity pools for 12 months.
* *Initial mint:* 1 $CAT minted upon contract creation for initial pool.

### **$sKITTY (Sleepy Kitty) - Kitty Finance Bond**

**Contract:** `0xC1CC96ca83F54563CC85698A4e5E353B8ABD0273`

$KITTY Bonds ($sKITTY) mainly help incentivise changes in $KITTY supply during an epoch contraction period. When the TWAP (Time Weighted Average Price) of $KITTY falls below 1:1 MATIC, $sKITTYs are issued and can be bought with $KITTY at the current price. 

Exchanging $KITTY for $sKITTY burns $KITTY tokens, taking them out of circulation (deflation) and helping to get the price back up to peg. These $sKITTY tokens can be redeemed for $KITTY when the price is above peg in the future, plus an extra incentive for the longer they are held above peg. This amounts to inflation and sell pressure for $KITTY when it is above peg, helping to push it back toward 1 $KITTY:1 $MATIC ratio.

Contrary to early algorithmic protocols, $sKITTYs do not have expiration dates.\
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If your $KITTY is tired (below peg) go and put it to sleep at the NAP (Naptime)! Exchange $KITTY for $sKITTY (Sleepy Kitty). Redeem after peg is above 1.1 to receive bonus energised $KITTY!\
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All holders are able to redeem their $sKITTY for $KITTY tokens as long as the treasury has a positive $KITTY balance, which typically happens when the protocol is in epoch expansion periods.