We define the Hopf superalgebra UT(sl(1|1)), which is a variant of the quantum supergroup Uq(sl(1|1)), and its representations V1⊗n for n>0. We construct families of DG algebras A, B and Rn, and consider the DG categories DGP(A), DGP(B) and DGP(Rn), which are full DG subcategories of the categories of DG A–, B– and Rn–modules generated by certain distinguished projective modules. Their 0 th homology categories HP(A), HP(B) and HP(Rn) are triangulated and give algebraic formulations of the contact categories of an annulus, a twice punctured disk and an n times punctured disk. Their Grothendieck groups are isomorphic to UT(sl(1|1)), UT(sl(1|1))⊗ℤUT(sl(1|1)) and V1⊗n, respectively. We categorify the multiplication and comultiplication on UT(sl(1|1)) to a bifunctor HP(A)× HP(A)→ HP(A) and a functor HP(A)→ HP(B), respectively. The UT(sl(1|1))–action on V1⊗n is lifted to a bifunctor HP(A)× HP(Rn)→ HP(Rn).
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