# $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 $MATIC) by reducing circulating supply of $KITTY if the time weighted average price (TWAP) goes below peg (1 $KITTY = 1 $MATIC).

**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.