In a bid to rectify past shortcomings, the team behind MuesliSwap, a decentralized exchange built on the Cardano blockchain, has announced a decision to refund users who have been impacted by high slippage over the past year. This move comes as a response to the recognition that their protocol’s slippage feature was not adequately clarified, causing confusion and inconvenience to users.
Slippage, often encountered in cryptocurrency transactions, refers to the difference in price between when a transaction is initiated and when it is confirmed on the blockchain. The MuesliSwap team acknowledged that users have been grappling with elevated slippage rates for the past year due to the specific setup of their decentralized matchmaker system.
This arrangement allowed matchmakers to execute limit orders and decide whether to return the excess slippage amount or retain it. While this mechanism provided an incentive for decentralized matchmakers, it led to uncertainty and perplexity among users.
To address this issue and make amends, the MuesliSwap team has decided to refund users who have encountered high slippage within the past 12 months using funds from the project. Moreover, they have taken immediate steps to rectify the slippage problem within the MuesliSwap order book, aiming to prevent such occurrences moving forward.
The matter of slippage has not been isolated to MuesliSwap alone; users across various Cardano-based decentralized exchanges (DEXs) have been facing similar issues. One trader recently expressed frustration, highlighting the substantial slippage faced during significant trades on any CARDANO DEX, which erodes the value for traders considerably.
It’s worth noting that MuesliSwap is the fifth-largest protocol on the Cardano network, boasting a total value locked of $17.3 million, according to DeFiLlama. However, the protocol’s total value locked has seen a decline of 27% since the start of the month and a substantial 68% drop since its peak in April 2022.
In December, MuesliSwap introduced an “organic APR” feature, which aimed to incentivize users to contribute collateral by increasing token emissions as liquidity grew within pools. This strategic move underscored their commitment to promoting user engagement within the ecosystem.
As the MuesliSwap team takes proactive steps to address slippage concerns and restore user confidence, it reflects the broader trend within the cryptocurrency space where projects are striving to enhance user experience and transparency to ensure a seamless and secure trading environment.