Kitty Finance is an algorithmic stablecoin built on Avalanche, designed to track the value of 1 AVAX through seigniorage. Its KITTY algorithmic token powers a fast-expanding ecosystem focused on improving liquidity and unlocking new use cases for the AVAX network.

The protocol automatically rebalances KITTY’s supply, moving its price higher or lower in response to changes in AVAX. Unlike earlier algorithmic tokens, KITTY does not peg to a stablecoin-instead, it is pegged to $AVAX. Given AVAX’s relatively high price per coin, KITTY is set to mirror it on a 1:1 basis. Practically, that means 1 KITTY should be worth 1 AVAX to keep the peg intact.

Many past algorithmic tokens have struggled because they offered few real use cases, giving users limited reasons to buy or hold them. To keep the peg over the long term, the KITTY team prioritizes ongoing innovation aimed at expanding functionality and creating stronger use cases.