Friction Finance: A Non-Inflationary, Self-Sustaining Decentralized Yield Farm

The Friction Finance whitepaper was released by the core team around 2021, aiming to address the demand for sustainability and innovative tokenomics in the decentralized finance (DeFi) sector at that time.

The whitepaper centers on Friction Finance as “a decentralized AMM with yield farming incentives, no minting, and a unique token distribution design.” What makes Friction Finance unique is its “no minting” tokenomics model, governance enabled by the TAO token, and the drive for self-sustaining pools and farms; the project operates on the BSC chain and shares liquidity with Pancakeswap, aiming to provide users with better prices. The significance of Friction Finance lies in offering DeFi users an innovative yield farming platform and exploring the sustainability and efficiency of tokenomics in decentralized finance.

The original intention of Friction Finance was to build a fairer and more sustainable decentralized automated market maker (AMM) platform to address potential inflationary pressures and token value dilution issues found in traditional DeFi projects. The core viewpoint presented in the Friction Finance whitepaper is: through a unique “no minting” token model and a strategy of sharing liquidity with existing major DEXs, it ensures the long-term health of the ecosystem and value capture for the TAO token, while providing efficient decentralized trading and yield opportunities.

Interested researchers can access the original Friction Finance whitepaper. Friction Finance whitepaper link: https://frictionfinance.gitbook.io/friction-finance/

Friction Finance whitepaper summary

Author: Julian Hartmann

Last updated: 2025-11-22 22:18

The following is a summary of the Friction Finance whitepaper, expressed in simple terms to help you quickly understand the Friction Finance whitepaper and gain a clearer understanding of Friction Finance.

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Disclaimer: The above interpretations are the author's personal opinions. Please verify the accuracy of all information independently. These interpretations do not represent the platform's views and are not intended as investment advice. For more details about the project, please refer to its whitepaper.