The team behind MuesliSwap Decentralized Exchange, a Cardano-based Dex, has announced plans to refund users who experienced significant slippage due to a lack of clarity in the protocol’s slippage feature. Slippage refers to the difference in price between transaction submission and confirmation on the blockchain.
Over the past year, MuesliSwap users have faced high slippage as a result of the decentralized matchmaker’s setup. Matchmakers were given the option to either return the excess slippage amount to users or retain it, creating confusion.
To address this issue, the MuesliSwap decentralized exchange team will refund affected users who encountered high slippage within the last 12 months using project funds. They have also taken immediate steps to address the slippage problem in the order book.
📢 Important Announcement! 🚀 At MuesliSwap, transparency and user education are paramount. We recognize that we fell short in providing adequate clarity on the slippage feature within the MuesliSwap Pool DEX protocol. Our decentralized matchmaker setup allowed each matchmaker to…
— MuesliSwap Team🥛 (@MuesliSwapTeam) August 7, 2023
Users across Cardano DEXs have raised concerns about slippage issues. MuesliSwap had reportedly been working on a DEX aggregator to mitigate slippage-related losses in large trades.
Despite being the fifth-largest protocol on Cardano, with a total value locked of $17.3 million, MuesliSwap’s TVL has declined by 27% since the start of the month and is down 68% from its all-time high in April 2022.
In the past, MuesliSwap introduced an “organic APR” feature to boost token emissions as liquidity increased in pools, incentivizing users to add collateral.
For more insights, you can read the magazine article titled “Deposit Risk: Exploring Crypto Exchanges’ Handling of User Funds.”