Table of Contents
- Refunding Users Affected by High Slippage
- Understanding Slippage and Its Impact
- User Concerns Across Cardano DEXs
MuesliSwap, a prominent decentralized exchange (DEX) on the Cardano blockchain, has taken the decision to refund users who faced unintended losses due to a "misunderstanding" regarding slippage mechanics within its platform.
Refunding Users Affected by High Slippage
The team behind MuesliSwap has acknowledged that users have been grappling with substantial slippage issues over the past year. On August 8, they openly admitted that they needed to adequately clarify the intricacies of the slippage feature in their protocol via a statement on X (formerly Twitter).
“To make amends, we will be refunding affected users who encountered high slippage on the MuesliSwap pools in the last 12 months from our project funds. Additionally, immediate action has been taken to remedy the slippage issue in the MuesliSwap order book”
basically, MuesliSwap has pledged to refund users who have experienced high slippage within the past year. The team also promptly made adjustments to fix the slippage problem within the MuesliSwap order book.
Affected users can expect the refund process to span up to four weeks. The funds will be automatically distributed based on an analysis of a user's on-chain trading history.
Understanding Slippage and Its Impact
Slippage, a concept widely recognized in trading, refers to the difference between the intended trade execution price and the actual price due to factors like market liquidity. DEX users can manually set a slippage threshold according to their comfort level.
The Cardano-based DeFi, MuesliSwap's unique approach to slippage involved allowing decentralized matchmakers to either return the extra slippage amount or retain the difference, adding an extra layer of complexity. Unfortunately, this approach led to confusion, particularly among new users.
The team has promised to remedy the situation so as to prevent similar confusion amongst users, stating,
“Going forward, our DEX protocol will provide clear and accurate information on slippage when interacting with our pools. Your trading experience matters, and we're determined to make it seamless!”
User Concerns Across Cardano DEXs
Slippage concerns have been voiced across various DEXs operating on the Cardano network. A trader on August 4 highlighted the challenges of executing large trades due to substantial slippage, impacting overall trading value.
The team also responded to another trader who enquired about the process, stating that all trade-related information would be fetched from the blockchain automatically and traders would not need to fill out any form to get the refund.
MuesliSwap's commitment to addressing slippage-related concerns reflects its dedication to refining the user experience and maintaining a transparent ecosystem for the Cardano community.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.