The design of a cipher system is essential and required with the development of the technology era. The internet of things concept is modern technology requiring lightweight, secure algorithms to investigate the requirement of the light device. Furthermore, IoT devices have limited resources (IoT devices should minimize battery life, limited memory size, and response time). A stream cipher system is faster than a block cipher system and has an easy feature with hardware and software implementation. This paper designs a lightweight authentication encryption algorithm based on stream cipher and chaotic maps with sponge structure for IoT applications. Currently, the suggested approach uses text data for encryption and authorization. Additionally, the suggested algorithm will be able to use it with image data in the future. Analysis results of the proposed algorithm based on NIST randomness tests, execution time, memory space, and functional features. The results are compared with other previous works which used sponge structure (e.g. Ascon, Elephant, ISAP, Photon-Beetle, and Xoodyak, etc.). Randomness tests show that the proposed system is random and secure with investigate all the functional features except the parallelization feature which will work it in the future. And also it has good fast speed and less memory space.