MuesliSwap, DEX, on Cardano will refund users funds after slippage confusion

MuesliSwap, DEX, on Cardano will refund users funds after slippage confusion

The team responsible for Cardano-based decentralized exchange MuesliSwap has decided to refund funds to users who have been affected by high slippages during the past year.
On August 8, the MuesliSwap team said that they “failed to provide sufficient clarity” on the slippage function within the protocol.
The difference in price between when a transaction is sent and when it is confirmed on the blockchain is called slippage.
The team said that MuesliSwap users have been paying high slippage for at least a year due to the way the decentralized matchmaker was set up.

Important Announcement! For MuesliSwap, transparency and user education are fundamental. We acknowledge that we have failed to provide sufficient clarity on the slippage feature within the MuesliSwap Pool DEX protocol.

Matchmakers – who scan buy and sell orders for matching and fulfillment – ​​“were able to fill a limit order and choose whether to refund the additional slippage amount or keep the difference at their discretion,” MuesliSwap reported.
He further said, the slippage difference was an incentive for decentralized matchmakers. But this has created confusion for the users.

“To make amends, we will reimburse affected users from our project’s funds who have experienced high slippage in the MuesliSwap pool over the past 12 months.”

In addition, immediate action has been taken to address the problem of slippage in the MuesliSwap order book.
users have Slippage issues highlighted on all Cardano DEXs, on 4th August a Businessman He has declared:

“Currently completing a large trade on any CARDANO DEX is subject to heavy slippage which reduces the value of the trader by a large percentage.”

He claimed that MuesliSwap was allegedly working on a DEX aggregator to split large trades and limit losses from slippages.
According to DeFiLlama, MuesliSwap is the fifth largest protocol on Cardano with a total locked value of $17.3 million. However, MuesliSwap’s TVL is down 27% since the start of the month and is down 68% from its April 2022 all-time high.
In December, MuesliSwap launched an “Organic Boost” feature that increased token issuance as more liquidity came into the pool, incentivizing users to add collateral.

Translation by Walter Rizzo