In response to a “misunderstanding” regarding how slippage operates on the platform, MuesliSwap, a Cardano-based decentralised exchange (DEX), announced on Wednesday that it will reimburse users who mistakenly lost money.Market makers, or traders who fill buy-and-sell orders, have the option to “fill the limit order and choose whether to return the additional slippage amount or retain the difference at their discretion,” according to developers.
Slippage in trading is the term used to describe when a market player receives a different deal execution price than expected because of things like the amount of available liquidity. Users of DEXs can manually set a slippage level that is suitable for them.
However, because of the way the decentralised matchmaker was designed, MuesliSwap users have been setting – and paying – high slippage for at least a year.
It was intended for the custom slipping to be a reward for decentralised matchmakers, but it ended up leading to “some misunderstanding among new users.”
Developers stated, “To make amends, we will be refunding from our project funds to affected users who experienced high slippage on the MuesliSwap pools in the last 12 months.” Furthermore, prompt action was made to address the slippage problem in the MuesliSwap order book.
The refund procedure might take up to four weeks, and the money will be dispersed automatically after looking at a user’s past on-chain trading activity.
MuesliSwap, one of the most popular venues on the Cardano network, has almost $10 million worth of various tokens locked up. According to DefiLlama data, it has traded tokens worth more than $500 million in the last year.