In a twist of events, the team behind the Cardano-based decentralized exchange (DEX) MuesliSwap has decided to refund users affected by high slippage over the past year. The decision came after widespread confusion amongst the user base on the slippage feature within the protocol. Slippage, or the price difference that may occur between the initiation and completion of a transaction, has been considerably high on MuesliSwap, primarily due to the way the decentralized matchmaker was programmed.
The matchmakers on the DEX, who are responsible for scanning both buy and sell orders and matching them up, had the liberty to choose whether to return the excess slippage amount or keep it. This feature was intended as an incentive for decentralized matchmakers, but instead resulted in mass confusion amongst users. In an attempt to address the issue, MuesliSwap made the commendable decision of refunding affected users.
In addition to the refund, the team has also taken immediate action to rectify the slippage problem in the MuesliSwap order book. However, the slippage issues aren’t isolated to MuesliSwap; it’s a stream of concern in all Cardano DEXes. Traders have been voicing their dissatisfaction, claiming that their value deteriorates significantly due to high slippage.
With a total value locked of $17.3 million, MuesliSwap is the fifth largest protocol on Cardano. Unfortunately, the slippage issue has caused the locked value to decline by 27% in the month and 68% from its all-time high in April 2022. While the decision to refund sounds promising for the faith of the users, the question still lingers around whether this can restore MuesliSwap’s credibility in the crowded DEX market.
On the darker side, the crypto space frequently falls prey to scam attempts. On August 9th, scammers attempted to defraud users by exploiting the account of Blockchain Capital, a crypto-focused venture capitalist firm, promising a faux giveaway of “BCAP” tokens. The problem became so rampant that it necessitated an FBI warning about the risks of such scam attempts. All these issues underline the dire need for stringent security measures and user education about potential frauds and scams, adding another layer of complexity to the maturation of blockchain technology.
Source: Cointelegraph
