- MuesliSwap acknowledges confusion over its slippage feature and commits to refunding impacted users.
- Refund process set to address high slippage events over the past year and may take up to four weeks.
Understanding the Slippage Scenario
MuesliSwap, a leading decentralized exchange (DEX) operating on the Cardano network, has taken decisive action in light of growing concerns related to its slippage feature. The term “slippage” in the crypto trading context pertains to the difference between the expected price of a trade and the price at which the trade is executed. Particularly for DEXs, this can be influenced by liquidity and market volatility.
📢 Important Announcement! 🚀 At MuesliSwap, transparency and user education are paramount. We recognize that we fell short in providing adequate clarity on the slippage feature within the MuesliSwap Pool DEX protocol. Our decentralized matchmaker setup allowed each matchmaker to…
— MuesliSwap Team🥛 (@MuesliSwapTeam) August 7, 2023
To provide some clarity, in MuesliSwap’s unique protocol, decentralized matchmakers are given the discretion to either return the surplus slippage amount or retain it. This difference is intended as an incentive for these matchmakers. However, newer users seem to have misinterpreted the term, which led to unforeseen trading losses.
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Addressing this, the MuesliSwap team has shown accountability by committing to a comprehensive refund for those who faced these unexpected high slippage losses. This reimbursement initiative will review incidents from the last 12 months and is expected to span over the course of the next three to four weeks. Ensuring transparency and accuracy, all the requisite data for this process will be procured directly from the blockchain, streamlining the procedure for users who were affected.
In a proactive step towards preventing future misunderstandings, MuesliSwap has also laid out plans to enhance user understanding of the slippage process. This implies that users will be armed with clear and precise information during their future trading endeavors.
Despite MuesliSwap’s earnest efforts to rectify the situation, it hasn’t been devoid of criticism. Some sections of the user base expressed dissatisfaction with the exchange’s initial communication stance, pointing to a perceived insensitivity in a prior social media interaction. Addressing this, MuesliSwap stated,
“We deeply value your support and feedback as we continue to build a truly decentralized and user-friendly exchange.”
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