Can a TWAP Oracle Still Be Manipulated through a Sustained, Long-Term Attack? ⎊ Path

Can a TWAP Oracle Still Be Manipulated through a Sustained, Long-Term Attack?

Yes, a TWAP can be manipulated through a "slow-drip" or sustained attack. By repeatedly and consistently manipulating the price just enough to nudge the average in a desired direction over the entire TWAP window, an attacker can slowly shift the reported price without triggering a large deviation alert.

This attack is much more capital-intensive and time-consuming than a flash loan.

How Can a Time-Weighted Average Price (TWAP) Oracle Mitigate Flash Loan Price Manipulation?

How Does a TWAP Settlement Price Mitigate Market Manipulation near Expiry?

What Is a “Time-Weighted Average Price” (TWAP) Oracle and Why Is It Preferred over a Spot Price Oracle?

How Does the Cost of Capital Relate to the Feasibility of TWAP Manipulation?

How Does a Time-Weighted Average Price (TWAP) Oracle Mitigate Price Manipulation?

How Does Using a Time-Weighted Average Price (TWAP) Make Oracle Manipulation More Difficult?

What Is the Vulnerability of a TWAP Oracle to a Sustained, Slow-Burn Price Manipulation?

What Is the Difference between an Average-Rate and an Average-Strike Asian Option?

Glossar

Twap Oracle

Oracle ⎊ A Twap Oracle, within cryptocurrency derivatives and options trading, represents a specialized data feed providing time-weighted average price (TWAP) benchmarks.

Long-Term

Horizon ⎊ Long-term perspectives within cryptocurrency, options trading, and financial derivatives necessitate a valuation framework extending beyond immediate price discovery, incorporating stochastic volatility models and anticipating shifts in regulatory landscapes.