Cardano DEX MuesliSwap will refund users after slippage confusion
MuesliSwap team wants to refund users who lost funds due to high slippage due to matchmaker setup from DEX.
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The team behind Cardano-based decentralized exchange MuesliSwap has made the decision to refund users who have been hit by high slippage over the past year.
On August 8, the MuseliSwap team said they "failed to provide adequate clarity" on the swipe feature in their protocol.
Slippage is the difference in price between when a transaction is submitted and when the transaction is confirmed on the blockchain.
MuesliSwap users have been paying high slippages for at least a year due to the way the decentralized matchmaking system was set up, the team explained.
Important announcement! At MuesliSwap, transparency and user education are paramount. We acknowledge that we have failed to provide adequate clarity on the slip function in the MuesliSwap Pool DEX protocol. Our decentralized matchmaker setup allowed each matchmaker to…
— MuesliSwap Team (@MuesliSwapTeam) August 7, 2023The matchmakers - who look for buy and sell orders to match and execute - were able to "fill the limit order and choose to return the amount of additional slippage or keep the difference at their discretion" , noted MuesliSwap.
The slippage difference was an incentive for decentralized matchmakers, he added, but it confused users.
"To make amends, we will refund affected users who have experienced high slippage on MuesliSwap pools in the past 12 months from our project funds."
In addition, immediate action has been taken to address the slippage issue in MuesliSwap's backlog, he added.
Related: DEX Aggregators: The Ultimate Solution to Reduce Price Slippage in DeFi
MuesliSwap team wants to refund users who lost funds due to high slippage due to matchmaker setup from DEX.
News
Join us on social networks
The team behind Cardano-based decentralized exchange MuesliSwap has made the decision to refund users who have been hit by high slippage over the past year.
On August 8, the MuseliSwap team said they "failed to provide adequate clarity" on the swipe feature in their protocol.
Slippage is the difference in price between when a transaction is submitted and when the transaction is confirmed on the blockchain.
MuesliSwap users have been paying high slippages for at least a year due to the way the decentralized matchmaking system was set up, the team explained.
Important announcement! At MuesliSwap, transparency and user education are paramount. We acknowledge that we have failed to provide adequate clarity on the slip function in the MuesliSwap Pool DEX protocol. Our decentralized matchmaker setup allowed each matchmaker to…
— MuesliSwap Team (@MuesliSwapTeam) August 7, 2023The matchmakers - who look for buy and sell orders to match and execute - were able to "fill the limit order and choose to return the amount of additional slippage or keep the difference at their discretion" , noted MuesliSwap.
The slippage difference was an incentive for decentralized matchmakers, he added, but it confused users.
"To make amends, we will refund affected users who have experienced high slippage on MuesliSwap pools in the past 12 months from our project funds."
In addition, immediate action has been taken to address the slippage issue in MuesliSwap's backlog, he added.
Related: DEX Aggregators: The Ultimate Solution to Reduce Price Slippage in DeFi
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