---
description: >-
  The first mintless AMM yield aggregator. Powered by BSC, Pancakeswap, and
  Reflect.Finance.
---

# Friction Finance

**Welcome!**

Friction Finance is a decentralized AMM with yield farming incentives, no mints, and a unique token distribution design. Friction Finance is powered by xTAO token which adds a governance layer and powers the self-sustaining pools and farms without ever minting a new token. Friction Finance runs on BSC and shares liquidity with Pancakeswap to provide users the best prices with large pools of liquidity.

#### Another yield farm protocol, really?&#x20;

DeFi protocols are popping up left and right, yield farming, yield mining, BSC, AMM's, clones, scams. It's hard to tell the difference between a genuine project and one that may not be quite what it seems. xTao stays away from unsustainable short-term yield programs and instead leverages open-source technology from some of the leading-edge projects in DeFi such as Uniswap, Pancakeswap, Sushiswap, and Reflect.Finance to deliver a truly innovative and unique solution to yield farming aggregation. xTAO's unique token features allow it to operate fully self-sustainable farms and pools without ever needing to mint a single token. You can read more about the current issues with DeFi yield protocols and how xTAO solves them [here](tokenomics/long-term-vision).

#### Features

**Brief Tokenomics**

* xTAO has a fixed total supply of 25,000,000 and there is no mint functionality in any of the code.&#x20;
* xTAO automatically re-distributes 3% of every transactions to all holders proportionately and automatically after ever transaction. This means that holders will earn xTAO without having to do anything. This unique concept first introduced by Reflect.Finance allows xTAO to have self-sufficient farms and pools that never run out of rewards while never adding more tokens onto the total supply.
* xTAO has automated burns, there is no manual process. [Read more about the burning mechanisms](holder-safety/automated-burns).
* xTAO did not launch on BSC strictly for the 'hype', BSC's low fee transactions is exactly what Tao needs to leverage its token distribution design to the fullest extent. More volume on xTAO means faster burn rates and holders receive more xTAO.

#### Triple Yield

Most DeFi protocols offer yield farms to incentivize liquidity for their assets. xTAO offers triple yield on all of its farms and pools, here's how it works:

**The 'regular' yield farming incentives:**

1. Earn tokens for providing liquidity on the AMM (basic)
2. Yield farming rewards

**xTAO yield farming incentives**

1. Earn tokens for providing liquidity on the AMM (basic)
2. Yield farming rewards
3. Earn 3% transaction fees while your liquidity is locked. Yes, you heard that right. While your tokens are locked, they will still be generating significant yield from the token distribution model of xTao on-top of earning yield from the AMM & farms / pools.

#### Holder Security

* No mint functionality in any of the code
* Fair launch - no pre-sale, no ico, no private investors
* Automated burns that don't rely on devs or manual processes
* No migrator code
* Support for emergency withdraws from all pools & farms

**Yield Farms & Pools**

* xTAO offers a suite of yield farms and pools, at launch we are supporting 3+ and plan to aggressively add more.

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