Cardano-Based DEX MuesliSwap Plans Refund Site for User Losses – What’s Going On?

In a recent update, MuesliSwap, one of the most popular decentralized finance (DeFi) protocols on the Cardano blockchain, has announced its intention to launch a refund site to address concerns raised by users regarding losses due to high slippage over the past year.

The MuesliSwap team has reportedly told CoinDesk they are set to open a claims window for users to request refunds for user losses incurred due to slippage.

This comes after some community members, including @beaumont_dvd, expressed impatience in waiting for the self-claim refund website to go live, which MuesliSwap originally promised around 3 months ago.

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— Dave (@ItsDave_ADA) October 21, 2023

According CoinDesk’s report, MuesliSwap has now clarified that users can already seek refunds for losses by opening a support ticket on the projects Discord server.

The process involves providing personal wallet details directly to the platform for manual processing.

The manual process stands in contrast to the upcoming self-claim site, which is expected to streamline the refund process by allowing users to automatically connect to the Cardano network and receive their refund in the form of ADA tokens.

MuesliSwap among the most popular apps on Cardano

Despite the delays in the refund site launch, MuesliSwap remains one of the most-used platforms on the Cardano blockchain.

The protocol currently has over $14 million in total value locked (TVL) across various tokens, data from DeFi tracking site DefiLlama shows.

The need for refunds arose in August when numerous users reported experiencing high fees in the form of slippage over a 12-month period. MuesliSwap developers attributed these losses to a “misunderstanding” about how slippage functions on their platform.

Among traders, slippage refers to the difference between the actual trade execution price and the best market price at the time, often because of low liquidity.