Sign In with Google
Sign In with Facebook
MuesliSwap Announces Refund to Combat Slippage Concerns
Based on the Cardano platform, decentralized exchange MuesliSwap recently decided to refund users who have been affected by substantial slippage over the past year.
On the 8th of August, the individuals behind MuesliSwap admitted shortcomings in sufficiently elucidating the aspects of the slippage function embedded in their protocol.
Slippage represents the price inconsistency between when a blockchain transaction is filed and when it is approved.
High Slippage Situation for Users
For nearly a year now, MuesliSwap users have faced high slippage charges due to the configuration of the decentralized matchmakers, as reported by the team.
These matchmakers, responsible for scouting for matching buy and sell orders, had the freedom to "execute the limit order and decide whether to refund the extra slippage or keep the differential," MuesliSwap further elaborated.
While such a slippage gap was intended to act as a motivator for the decentralized matchmakers, it ended up causing disarray among the users.
Steps Towards Slippage Issue Rectification
MuesliSwap also specified that immediate corrective measures have been taken to address the slippage complications in its order book.
The issue of slippage has been a discussion point among users across all Cardano DEXs. Just a few days earlier on Aug. 4, a trader emphasized that MuesliSwap was ostensibly working on a DEX aggregator to compartmentalize large trades and keep slippage-induced losses in check.
As reported by DeFiLlama, MuesliSwap holds the fifth position among Cardano-based protocols, with a total locked value of $17.3 million. However, the TVL of MuesliSwap has seen a 27% dip since the onset of August, and is 68% down from its peak recorded in April 2022.
In December, MuesliSwap unveiled a unique "organic APR" feature that escalated token emissions as liquidity was augmented in its pools, aiming to encourage users for additional collateral contribution.
