The creators of MuesliSwap, the decentralized exchange built on the Cardano blockchain, have opted to reimburse users who have encountered significant slippage issues over the preceding year.
On August 8th, the MuesliSwap team acknowledged their shortcomings in effectively communicating the slippage mechanism within their protocol.
Slippage refers to the variance in price between the moment a transaction is initiated and its confirmation on the blockchain.
MuesliSwap users have been grappling with elevated slippage for a duration of at least one year, a result of the specific configuration of the decentralized matching process, as elaborated by the team.
The matchmakers, responsible for identifying compatible buy and sell orders to execute, had the authority to either refund the excess slippage amount or retain the difference as per their choice, as outlined by MuesliSwap.
Although this slippage variation served as an incentive for the decentralized matchmakers, it led to user perplexity, the platform further clarified.
“As a step towards reconciliation, we intend to reimburse users who experienced significant slippage within MuesliSwap pools over the past year, utilizing resources from our project funds.”
Furthermore, prompt measures have been implemented to address the slippage concern within the MuesliSwap order book, the statement affirmed.
Slippage concerns across various Cardano-based decentralized exchanges (DEXs) have been drawing user attention. On August 4th, a trader remarked:
“At present, executing a SIGNIFICANT trade on any CARDANO DEX exposes traders to NOTABLE slippage, eroding a substantial portion of their value.”
This individual indicated that MuesliSwap was purportedly in the process of developing a DEX aggregator to divide substantial trades and curtail losses stemming from slippage.
MuesliSwap holds the position of the fifth-largest protocol on Cardano, boasting a total locked value amounting to $17.3 million, as reported by DeFiLlama. Nonetheless, MuesliSwap’s total value locked (TVL) has decreased by 27% since the commencement of the month and has undergone a 68% decline since reaching its peak in April 2022.
In December, MuesliSwap introduced an “organic APR” feature that heightened token emissions proportionate to the infusion of more liquidity into pools, a strategy aimed at incentivizing users to contribute collateral.