MuesliSwap customers had been paying a high slippage rate for at least a year.
Urgent measures had been made to address the order slippage problem at MuesliSwap.
The team of the Cardano-based decentralized exchange MuesliSwap has decided to reimburse customers who had significant slippage in the last twelve months. The MuesliSwap team “fell short in providing adequate clarity” on the slipping feature in their protocol as stated on August 8.
Slippage refers to the fluctuation in cost that occurs between the time a transaction is filed and the time it is verified on the blockchain. The company claimed that because of how the decentralized matchmaker was designed, MuesliSwap customers had been paying a high slippage rate for at least a year.
The team stated:
“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.”
Slippage Issue Addressed
It was stated by MuesliSwap that matchmakers might fill the limit order and repay the excess slippage amount or keep the difference as they saw fit. Users were confused by the slippage discrepancy, which provided an incentive for decentralized matchmakers. It further noted that urgent measures had been made to address the order slippage problem at MuesliSwap.
Moreover, they said MuesliSwap was developing a DEX aggregator to help them divide up their transactions. And, thus reduce their exposure to slippage.
According to DefiLlama, MuesliSwap has a total value locked (TVL) of $17.3 million. Thus, making it the fifth biggest protocol on Cardano. When compared to its all-time high in April 2022, MuesliSwap TVL is now down 68%. To encourage users to provide collateral, MuesliSwap introduced an “organic APR” feature in December. It raised token emissions in proportion to the amount of liquidity added to pools.