The Cardano DEX MuesliSwap team, in response to concerns regarding slippage on its Cardano-based decentralized exchange, has undertaken a significant step to alleviate the issue and ensure user satisfaction.

Understanding the Slippage Feature, Acknowledgement and Refund

The concept of slippage, which pertains to the variation in price between transaction submission and confirmation on the blockchain, has been a point of contention for MuesliSwap users.

The decentralized matchmaker’s mechanism, designed to pair buy and sell orders, introduced a distinctive element wherein matchmakers could decide whether to return excess slippage or retain the difference, leading to user confusion.

In an acknowledgment of their shortcomings, the MuesliSwap team publicly conceded that their communication regarding the slippage feature had been insufficient. The result was a lack of clarity that contributed to users experiencing higher-than-expected slippage for an extended period. However, MuesliSwap is taking proactive measures to address this concern.

To reconcile the adverse impact on users who encountered elevated slippage within the MuesliSwap pools during the last year, the team has decided to refund them from the project funds. Moreover, the team has acted promptly to rectify the slippage problem in the MuesliSwap order book, a step that aims to enhance user experience and bolster the platform’s integrity.

Broader Slippage Trends Across Cardano DEXs

The issue of slippage is not confined to MuesliSwap alone; users across various Cardano DEXs have highlighted similar concerns. Observations from a trader on August 4th underscored the challenge of substantial slippage during sizeable trades, impacting traders’ potential gains.

MuesliSwap’s efforts to develop a DEX aggregator to mitigate losses due to slippage are indicative of their commitment to user-centric solutions.

As the fifth-largest protocol operating on Cardano, MuesliSwap has a substantial total value locked (TVL) of $17.3 million, as reported by DeFiLlama. However, it’s worth noting that MuesliSwap’s TVL has experienced a 27% decline since the start of the month, following a larger 68% drop from its peak in April 2022.

Innovations and Future Prospects

In December, MuesliSwap introduced the “organic APR” feature, a strategic move to stimulate user participation by enhancing token emissions in response to increased liquidity. Despite the recent challenges, this innovation and commitment to user engagement showcase MuesliSwap’s potential for growth and resilience in the dynamic landscape of decentralized exchanges.

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