MuesliSwap to Reimburse Users Amid Slippage concerns 

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key takeaways:

  • MuesliSwap, a Cardano DEX, to refund users for unintended losses arising from slippage misconceptions.
  • Market makers decide to refund or retain extra slippage amounts, leading to user confusion.

DeFi (Decentralized Finance) platforms have brought about a revolution in the world of finance, enabling users to engage in various financial activities without relying on traditional intermediaries. 

However, like any emerging technology, DeFi platforms have their share of challenges, and one of them is the issue of slippage. MuesliSwap, a prominent player in the DeFi space, has taken a proactive step to address slippage concerns and ensure user satisfaction.

The creators of MuesliSwap, the decentralized exchange built on the Cardano blockchain, have taken the commendable step of offering refunds to users who have encountered significant slippage issues over the past year.

In a statement released on August 8th, the MuesliSwap team acknowledged that they had not sufficiently clarified the functioning of the slippage feature embedded within their protocol.

Slippage, in this context, refers to the variance in price between the moment a transaction is initiated and when it is ultimately validated on the blockchain.

MuesliSwap users have been grappling with significant slippage expenses attributed to the decentralized matchmaker mechanism incorporated by the platform.

The primary concern arises from the responsibilities of matchmakers, who play a pivotal role in scanning the network for purchase and sale orders, aligning them to execute transactions. In the MuesliSwap framework, matchmakers held the power to “execute the limit order and make the decision to reimburse the surplus slippage sum or retain the excess at their own discretion.” 

While this slippage differential served as an incentive for decentralized matchmakers, it led to notable bewilderment and dissatisfaction among the platform’s user base.

Furthermore, prompt measures have been implemented to rectify the slippage concern within the MuesliSwap order book, as stated by the platform.

Numerous users have been drawing attention to slippage-related problems across various Cardano-based decentralized exchanges (DEXs). On August 4th, a trader remarked:

Engaging in substantial trades on any CARDANO DEX presently entails substantial slippage, significantly eroding trader profitability.”

The trader asserted that MuesliSwap was reportedly in the process of developing a DEX aggregator with the intention of partitioning extensive trades and minimizing losses stemming from slippage.

Setbacks are common in the world of DeFi. However, how platforms respond to these difficulties can distinguish them. MuesliSwap’s recent admissions and remedial efforts demonstrate a commitment to evolve and prioritise user trust above all else, a sentiment that may well influence their future destiny.

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Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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