Logll Tech News — In a recent development, the team responsible for the Cardano-based decentralized exchange MuesliSwap has taken a significant step to address the persistent issue of high slippage that has affected users over the course of the past year.
- This decision comes as the project aims to rectify its approach and enhance user clarity within its protocol.
The Slippage Predicament 🔄
Slippage, a term denoting the variance between the price at which a transaction is submitted and the price when it is ultimately confirmed on the blockchain, has been a considerable pain point for MuesliSwap users for an extended period. The mechanism in place for the decentralized matchmaker, designed to match buy and sell orders, inadvertently led to substantial slippage occurrences. The decentralized matchmakers, responsible for executing these orders, were granted the authority to either return the excess slippage amount to users or retain the differential amount. This innovative approach, although an incentive for matchmakers, regrettably caused perplexity among users.
📢 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
A Step Towards Reconciliation 💸
To address these concerns, the MuesliSwap team has made a notable commitment. Acknowledging their shortfall in conveying adequate clarity regarding the slippage feature within their protocol, they have undertaken to reimburse users who have encountered high slippage instances within the MuesliSwap pools over the past year. This reimbursement will be facilitated using project funds, signifying the project’s dedication to rectify the situation and restore user confidence.
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Immediate Measures Taken ✅
In tandem with the refund initiative, the MuesliSwap team has promptly taken measures to rectify the slippage predicament within their order book. This proactive approach underscores the project’s commitment to not only acknowledging the issue but also actively addressing it. This action is especially crucial given that the issue of slippage has been highlighted by users across various Cardano DEXes.
📣 Clarifying Slippage on MuesliSwap: We want to address confusion about advanced matchmaker slippage on our platform. Quick heads-up: This impacts only a handful of users so please be careful about what others state on Twitter. 🔍
— MuesliSwap Team🥛 (@MuesliSwapTeam) August 8, 2023
1️⃣ Trades through the MuesliSwap DEX aggregator… pic.twitter.com/SBpBZUWxnb
User Testimonials and Action 📣
On the 4th of August, a trader expressed concerns about the substantial slippage encountered during substantial trades on any Cardano DEX. This issue erodes traders’ value significantly and prompted users to expect improved mechanisms. Specifically, there were mentions of MuesliSwap actively developing a DEX aggregator to divide large trades and mitigate losses linked to slippage.
MuesliSwap’s Position and Performance 📊
MuesliSwap has positioned itself as the fifth-largest protocol on the Cardano network, boasting an impressive total value locked (TVL) figure of $17.3 million, as reported by DeFiLlama. However, the TVL of MuesliSwap has encountered a decline of 27% since the commencement of the current month and a substantial 68% drop since its peak in April 2022. These figures underscore the project’s challenges and the market’s evolving dynamics.
Leveraging Organic APR 🌱
In a bid to incentivize user participation and add collateral, MuesliSwap launched an innovative “organic APR” feature in December. This feature bolstered token emissions in proportion to the liquidity injected into the pools. The initiative aimed to encourage users to contribute collateral and actively engage with the platform’s offerings, enhancing the overall ecosystem.
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FAQs About MuesliSwap’s Refund and Slippage Initiative ❓
Slippage refers to the difference between the price at which a transaction is submitted and the price confirmed on the blockchain, often resulting in unexpected losses for users.
The decentralized matchmaker’s mechanism unintentionally led to high slippage due to its approach to fulfilling buy and sell orders.
MuesliSwap has committed to refunding affected users who encountered high slippage instances in the past year. Immediate measures have also been taken to rectify the slippage situation within the platform.
Decentralized matchmakers had the authority to retain excess slippage amounts, creating an incentive for them within the ecosystem.
MuesliSwap’s TVL has faced a decline, reflecting the evolving market dynamics and the challenges faced by the project.
MuesliSwap introduced the “organic APR” feature, which increased token emissions based on the liquidity injected into the pools, thereby incentivizing users to contribute collateral.
MuesliSwap is reportedly working on a DEX aggregator to split large trades, minimizing losses attributed to slippage.