TECHNICAL CONCEPTS
TWAP (Time-Weighted Average Price)
Definition
TWAP is the average price of an asset calculated over a specific time period, weighted by time. It's used by oracles and protocols to provide more stable, manipulation-resistant price feeds.
Example
Example
Uniswap V2 provides TWAP oracles that average prices over the last hour to prevent flash loan price manipulation attacks.
Risks to Consider
Risks
- Lagging prices
- Still manipulable over time
- Complexity
