MuesliSwap, a decentralized exchange (DEX) built on the Cardano blockchain, has recently come under scrutiny due to concerns about high slippage losses faced by some of its users. In a bid to address these concerns and maintain trust within its community, the platform has announced plans to refund those affected.
On 7th August, a day before their detailed clarification on the slippage issue, MuesliSwap took to Twitter to shed light on the unique nature of their Orderbook DEX. Unlike traditional Automated Market Maker (AMM) DEXs, MuesliSwap’s Orderbook DEX has been designed to ensure 0% slippage for all transactions, a feature that has been consistently maintained for over a year. They emphasized their commitment to a fair and secure trading environment, highlighting the default 0% slippage on MuesliSwap pools to protect against potential exploitation by decentralized matchmakers.
Recognizing the diverse needs of their user base, MuesliSwap introduced an additional configuration for pool slippage, albeit disabled by default, catering to experienced traders seeking more transactional control. They urged users to review their settings and ensure the no-slippage option remains enabled, reinforcing their commitment to user safety.
In their commitment to transparency, MuesliSwap announced plans to release a comprehensive report detailing the workings of their Orderbook DEX and its distinction from other AMM DEXs. This initiative underscores their dedication to educating the community and ensuring a seamless trading experience.
The subsequent tweet on 8th August clarified the slippage issue’s nature. They emphasized that the majority of trades on their platform follow standard slippage protocols, similar to other Cardano DEX interfaces. The confusion, they explained, stems from an “advanced matchmaker slippage” setting available in the platform’s advanced menu. They’ve since rebranded this feature and committed to compensating users adversely affected by it.
MuesliSwap also provided some context on the scale of the issue. They estimate that this feature impacted less than 1% of all trades on their platform. They’ve cautioned users against trusting arbitrary figures on social media platforms like Twitter. A detailed report, which will include their findings and the compensation process, is forthcoming.
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