MuesliSwap to Refund Users
The team behind Cardano-based decentralized exchange MuesliSwap has announced its decision to refund users affected by high slippage over the past year. On August 8, the team stated that it “fell short in providing adequate clarity” on how the slippage feature within the protocol was structured.
Understanding Slippage
Slippage is the price difference between when a transaction is submitted and when it is confirmed on the blockchain. In MuesliSwap, users have been paying high slippage for at least a year due to the way the decentralized matchmaker was designed.
The Role of Matchmakers
Matchmakers — who scan for buy and sell orders to match up and fulfill — had the option to “fill the limit order and choose whether to return the additional slippage amount or retain the difference at their discretion,” MuesliSwap explained. This led to confusion among users, and as an incentive, the slippage difference was retained by decentralized matchmakers.
Remedying the Issue
The MuesliSwap team is committed to making amends by refunding affected users who encountered high slippage on the platform’s pools over the last year. Immediate action has also been taken to correct the slippage issue in the MuesliSwap order book.
A Broader Cardano DEX Problem
The issue of slippage is not unique to MuesliSwap, with users pointing out slippage problems on other Cardano DEX platforms as well. Efforts are reportedly being made to work on a DEX aggregator to mitigate large losses due to slippage.
MuesliSwap’s Current Standing
MuesliSwap is the fifth-largest protocol on Cardano, with a total value locked of $17.3 million. However, its TVL has declined 27% since the beginning of August and is down 68% since its all-time high in April 2022.
Conclusion
The response from MuesliSwap to refund users and rectify the slippage issue reflects a commitment to transparency and customer satisfaction. The broader Cardano community will be watching how this unfolds as the platform seeks to rebuild trust and recover from recent losses.
