Cardano-Native MuesliSwap To Refund Users After “Slippage” Misunderstanding
August 09 2023 - 4:00PM
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MuesliSwap, a decentralized exchange (DEX) on the Cardano network,
has announced its decision to reimburse its users that have been
affected by high slippage over the past year. This is in response
to the recent questions faced by the protocol on its slippage
feature. Slippage refers to the price difference between when a
transaction order is submitted and when the transaction is executed
by the market maker and confirmed on the blockchain. MuesliSwap
Acknowledges Lack Of “Adequate Clarity” In a post on X
(formerly Twitter), the team behind MuesliSwap admitted that it
failed to provide “adequate clarity” on the slippage feature within
its decentralized exchange. Users have had to pay high slippage due
to the manner in which the protocol’s matchmaker was
designed. Related Reading: Is Curve DAO (CRV) Price On Track
To Reach Or Exceed $1 This Month? The MuesliSwap team explained in
the post: Our decentralized matchmaker setup allowed each
matchmaker to fill the limit order and choose whether to return the
additional slippage amount or retain the difference at their
discretion. MuesliSwap claims this difference has served as an
incentive for the matchmakers since the beginning. To further
clarify, the protocol’s team said this “supplementary matchmaker
incentive” pushes the decentralized matchmaker to prioritize users’
orders during periods of high market volatility. However, it
acknowledged that pushing this under the unclear term “slippage”
may have confused new users. 📣 Clarifying Slippage on MuesliSwap:
We want to address confusion about advanced matchmaker slippage on
our platform. Quick heads-up: This impacts only a handful of users
so please be careful about what others state on Twitter. 🔍 1️⃣
Trades through the MuesliSwap DEX aggregator…
pic.twitter.com/SBpBZUWxnb — MuesliSwap Team🥛 (@MuesliSwapTeam)
August 8, 2023 In a bid to rectify the situation, the MuesliSwap
team disclosed that it would be refunding users who were affected
by the high slippage on the protocol’s pools in the last 12 months.
The team claims that the funds for users’ reimbursement will come
from the “project funds”. Additionally, MuesliSwap said that a
comprehensive analysis of all trades will be carried out to ensure
fair refunds. “This process may take approximately 3 to 4 weeks as
we gather and validate the necessary data, and implement the
distribution code,” the team noted. MuesliSwap To Remedy The
Situation? At the end of the post, MuesliSwap stated that swift
action has been taken to fix the high slippage issue in the DEX
order book. Related Reading: Cardano (ADA) Price Prediction:
28% Upswing Or 23% Drop Coming Next? The team also said: Going
forward, our DEX protocol will provide clear and accurate
information on slippage when interacting with our pools. MuesliSwap
is the fifth-largest protocol on the Cardano network, with a total
value locked (TVL) of $10.41 million, according to data from
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