According to the MuesliSwap, the company has "fell short in providing adequate clarity."
In the ever-evolving world of cryptocurrency, MuesliSwap, the decentralized exchange powered by Cardano, has recently made headlines over plans to refund users affected by the excessive slippage.
Slippage is the price variation from a transaction time is initiated to its confirmation on the blockchain. The MuesliSwap team recently admitted that they "fell short in providing adequate clarity" about how this feature functioned within their platform.
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Owing to the structure of the decentralized matchmaker system, MuesliSwap users have been allegedly paying the high slippage for over a year.
Interestingly, the matchmakers play a pivotal role in this issue. These entities constantly sift through buy and sell orders, aiming to pair them effectively.
MuesliSwap pointed out that these matchmakers possessed the power to "fill the limit order and choose whether to return the additional slippage amount or retain the difference at their discretion." The mechanism was indeed designed as an incentive for matchmakers, but, in turn, it brewed confusion among the platform's user base.
In a move to rectify their oversight, MuesliSwap declared:
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.
Alongside this announcement, the firm also conveyed that steps are being taken to address the slippage concern in their order book.
This isn't the first slippage incident restricted to MuesliSwap. Across Cardano DEX platforms, slippage has been a recurrent concern. On August 4th, one trader voiced concerns stating:
Currently completing a LARGE trade on any CARDANO DEX is subject to HUGE slippage which diminishes trader’s value by a large percentage.
Adding to this narrative, there's a buzz around MuesliSwap developing a DEX aggregator, a tool designed to break down larger trades, aiming to curb slippage-related losses.
According to the DeFi data, on the Cardano platform, MuesliSwap stands as the fifth-largest protocol, safeguarding a total value of $17.3 million. However, a deeper dive reveals that MuesliSwap's total value locked (TVL) has dipped by 27% since the beginning of the month.
The cryptocurrency realm is intricate, and MuesliSwap's proactive approach to addressing user concerns showcases its dedication to enhancing user experience. Their acknowledgment and subsequent action plan sets a precedent for other platforms in the rapidly-growing Cardano ecosystem.
