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How Can the Cost of Manipulating a TWAP Oracle Be Calculated?

The cost of manipulation is the sum of transaction fees, price slippage, and the capital required to sustain the manipulated price.
Greeks.Live29.10.25

How Can the Cost of Manipulating a TWAP Oracle Be Calculated?

The cost of manipulating a TWAP oracle can be estimated by calculating the cost of executing the trades required to move the price to the desired level and sustain it for the duration of the TWAP period. This cost includes the transaction fees, the price slippage, and the capital required to execute the trades.

The formula for calculating the cost is complex and depends on the specific mechanics of the DEX's automated market maker (AMM). However, it is possible to model the cost and determine the economic feasibility of an attack.

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