Cardano-Native MuesliSwap To Refund Users After “Slippage” Misunderstanding

MuesliSwap, a decentralized exchange (DEX) on the Cardano network, has announced its decision to reimburse its users that have been affected by high slippage over the past year. This is in response to the recent questions faced by the protocol on its slippage feature.

Slippage refers to the price difference between when a transaction order is submitted and when the transaction is executed by the market maker and confirmed on the blockchain.

MuesliSwap Acknowledges Lack Of “Adequate Clarity” 

In a post on X (formerly Twitter), the team behind MuesliSwap admitted that it failed to provide “adequate clarity” on the slippage feature within its decentralized exchange. Users have had to pay high slippage due to the manner in which the protocol’s matchmaker was designed. 

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The MuesliSwap team explained in the post:

Our decentralized matchmaker setup allowed each matchmaker to fill the limit order and choose whether to return the additional slippage amount or retain the difference at their discretion.

MuesliSwap claims this difference has served as an incentive for the matchmakers since the beginning. To further clarify, the protocol’s team said this “supplementary matchmaker incentive” pushes the decentralized matchmaker to prioritize users’ orders during periods of high market volatility. However, it acknowledged that pushing this under the unclear term “slippage” may have confused new users.