Cardano 
$0.999842-based decentralized cryptocurrency exchange (DEX) MuesliSwap announced today that it will compensate users who unintentionally lost money due to a misunderstanding of how slippage works on the exchange.
MuesliSwap Steps Back from Slippage Feature
MuesliSwap developers recently stated, “Our decentralized matching system allowed each matcher to either refund the additional slippage amount or keep the difference at their discretion, which serves as an incentive for decentralized matchers and has been an integral part of our order book protocol from the beginning. However, we see that the term ‘slippage’ has caused some misunderstandings among new users. We regret not making this clearer and want to rectify the situation.”
Slippage refers to the difference between the intended transaction price and the actual price a market participant receives due to factors such as available liquidity. While users on decentralized cryptocurrency exchanges can manually set a slippage level they are comfortable with, MuesliSwap users have been forced to adjust to high slippage settings for at least a year due to the setup of the decentralized matcher, resulting in higher fees.
Although the special slippage rate on MuesliSwap was introduced to incentivize decentralized matchers, it led to significant losses among new users due to misunderstandings. The exchange had to backtrack due to increased criticism.
Review of All Transactions in the Last 12 Months
In order to compensate for the losses, MuesliSwap developers stated, “To make a fair refund, we will refund affected users from project funds who have experienced high slippage in MuesliSwap pools within the last 12 months, and a comprehensive analysis of all transactions will be conducted.” They also added, “Furthermore, immediate action has been taken to fix the slippage issue in the MuesliSwap order book.”
The refund process may take up to four weeks, and funds will be automatically distributed by analyzing a user’s transaction history on the blockchain.
