# How Does a Time-Weighted Average Price (TWAP) Help Defend against Price Feed Attacks? ⎊ Path

**Published:** 2025-12-05
**Author:** Greeks.live
**Categories:** Path

---

## How Does a Time-Weighted Average Price (TWAP) Help Defend against Price Feed Attacks?

A Time-Weighted Average Price (TWAP) is a method that calculates the average price of an asset over a specific period, rather than taking the price at a single moment. This mechanism effectively smooths out any sudden, short-lived price spikes or drops caused by manipulation attempts, such as those executed via flash loans.

Since a flash loan attack is instantaneous, the momentary manipulated price has minimal impact on the overall calculated average, thus protecting the smart contract.

- [What Is the Role of Time-Weighted Average Price (TWAP) in DeFi Oracles?](https://learn.greeks.live/path/what-is-the-role-of-time-weighted-average-price-twap-in-defi-oracles/)

- [How Does a TWAP Oracle Specifically Defend against Flash Loan Price Manipulation?](https://learn.greeks.live/path/how-does-a-twap-oracle-specifically-defend-against-flash-loan-price-manipulation/)

- [How Does a Time-Weighted Average Price (TWAP) Oracle Mitigate Flash Loan Attacks on a Derivatives Contract?](https://learn.greeks.live/path/how-does-a-time-weighted-average-price-twap-oracle-mitigate-flash-loan-attacks-on-a-derivatives-contract/)

- [How Do Time-Weighted Average Prices (TWAPs) Mitigate Oracle Manipulation Risks?](https://learn.greeks.live/path/how-do-time-weighted-average-prices-twaps-mitigate-oracle-manipulation-risks/)

- [What Is Time-Weighted Average Price (TWAP) and How Does It Defend against Flash Loan Attacks on Oracles?](https://learn.greeks.live/path/what-is-time-weighted-average-price-twap-and-how-does-it-defend-against-flash-loan-attacks-on-oracles/)

- [What Is the Impact of “Flash Loans” on the Stability of Liquidity Pools in DeFi?](https://learn.greeks.live/path/what-is-the-impact-of-flash-loans-on-the-stability-of-liquidity-pools-in-defi/)

- [What Is the Difference between a Volume-Weighted Average Price (VWAP) and a TWAP?](https://learn.greeks.live/path/what-is-the-difference-between-a-volume-weighted-average-price-vwap-and-a-twap/)

- [What Is the Role of Time-Weighted Average Price (TWAP) in Mitigating Oracle Attacks?](https://learn.greeks.live/path/what-is-the-role-of-time-weighted-average-price-twap-in-mitigating-oracle-attacks/)

## Glossar

### [Robust Price Feed](https://learn.greeks.live/area/robust-price-feed/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Integrity ⎊ A robust price feed within cryptocurrency derivatives necessitates a high degree of integrity, functioning as a foundational element for fair valuation and risk management.

### [Price Feed](https://learn.greeks.live/area/price-feed/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Feed ⎊ A price feed is a continuous stream of real-time pricing data from various sources used to determine the fair value of an asset.

### [Average Price](https://learn.greeks.live/area/average-price/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Calculation ⎊ The Average Price represents the volume-weighted mean execution price of an underlying asset or derivative contract over a specified interval, crucial for settlement procedures in many crypto derivatives markets.

## Discover More

### [In Which Financial Derivative Contracts Is a Robust Price Feed like TWAP Most Critical?](https://learn.greeks.live/path/in-which-financial-derivative-contracts-is-a-robust-price-feed-like-twap-most-critical/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![In Which Financial Derivative Contracts Is a Robust Price Feed like TWAP Most Critical?](https://learn.greeks.live/wp-content/uploads/2025/10/Abstract-Visualization-of-High-Frequency-Trading-Execution-Amidst-Decentralized-Finance-Option-Structures.webp)

Decentralized lending protocols (for collateral/liquidation) and perpetual futures contracts (for index price/funding rates) require the most robust price feeds.

### [How Does the "Oracle Problem" Relate to the Volatility and Price Feed for Cryptocurrency Options?](https://learn.greeks.live/path/how-does-the-oracle-problem-relate-to-the-volatility-and-price-feed-for-cryptocurrency-options/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does the "Oracle Problem" Relate to the Volatility and Price Feed for Cryptocurrency Options?](https://learn.greeks.live/wp-content/uploads/2025/10/Aerodynamic-Unfolding-Mechanism-Representing-Modular-Digital-Asset-Settlement-Infrastructure-Evolution.webp)

It ensures the accurate, real-time price and volatility data needed for fair option pricing, margin calls, and risk management on-chain.

### [What Is a Time-Weighted Average Price (TWAP) Oracle and Its Benefit?](https://learn.greeks.live/path/what-is-a-time-weighted-average-price-twap-oracle-and-its-benefit/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is a Time-Weighted Average Price (TWAP) Oracle and Its Benefit?](https://learn.greeks.live/wp-content/uploads/2025/10/Visualizing-High-Frequency-Algorithmic-Trading-Propeller-Dynamics-Within-Decentralized-Finance-Protocols.webp)

A price average over time that is resistant to flash loan attacks and temporary spikes.

### [How Does a Volume-Weighted Average Price (VWAP) Differ from a Simple Average in Settlement?](https://learn.greeks.live/path/how-does-a-volume-weighted-average-price-vwap-differ-from-a-simple-average-in-settlement/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does a Volume-Weighted Average Price (VWAP) Differ from a Simple Average in Settlement?](https://learn.greeks.live/wp-content/uploads/2025/10/Advanced-Mechanistic-Depiction-of-Cross-Chain-Atomic-Swap-Execution-Primitives-Underneath-Curve-Protocol-Structures.webp)

VWAP weights prices by the volume traded at that price, making it a more representative and manipulation-resistant average than a simple average.

### [Why Is a Time-Weighted Average Used Instead of a Simple Instantaneous Premium?](https://learn.greeks.live/path/why-is-a-time-weighted-average-used-instead-of-a-simple-instantaneous-premium/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Why Is a Time-Weighted Average Used Instead of a Simple Instantaneous Premium?](https://learn.greeks.live/wp-content/uploads/2025/10/Abstract-Digital-Asset-Portfolio-Visualization-Highlighting-Implied-Volatility-Surface-Topology.webp)

To prevent manipulation of the funding rate and ensure it reflects the sustained supply/demand imbalance over time.

### [What Is "Just-in-Time" (JIT) Liquidity and How Does It Relate to Sandwich Attacks?](https://learn.greeks.live/path/what-is-just-in-time-jit-liquidity-and-how-does-it-relate-to-sandwich-attacks/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is "Just-in-Time" (JIT) Liquidity and How Does It Relate to Sandwich Attacks?](https://learn.greeks.live/wp-content/uploads/2025/10/Quantum-Entanglement-Visualization-Representing-Decentralized-Exchange-Liquidity-Pool-Dynamics-and-Option-Strike-Price-Convergence.webp)

JIT liquidity is a temporary deposit by an LP to capture fees and MEV from a large pending trade, which can mitigate a sandwich attack's negative price impact.

### [Does a Checksum Offer Protection against Malicious Attacks or Only Accidental Errors?](https://learn.greeks.live/path/does-a-checksum-offer-protection-against-malicious-attacks-or-only-accidental-errors/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Does a Checksum Offer Protection against Malicious Attacks or Only Accidental Errors?](https://learn.greeks.live/wp-content/uploads/2025/10/Decentralized-Autonomous-Organization-Governance-Structure-Illuminated-Through-Hinge-Mechanism-Visualization.webp)

Checksums primarily guard against accidental errors like typos; they are not a robust defense against determined malicious attacks.

### [How Does a Weighted Aggregation System Defend against a "Sybil Attack" by an Attacker Controlling Multiple Low-Stake Nodes?](https://learn.greeks.live/path/how-does-a-weighted-aggregation-system-defend-against-a-sybil-attack-by-an-attacker-controlling-multiple-low-stake-nodes/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does a Weighted Aggregation System Defend against a "Sybil Attack" by an Attacker Controlling Multiple Low-Stake Nodes?](https://learn.greeks.live/wp-content/uploads/2025/10/Quantum-Lattice-Structure-Mimicking-Volatility-Surface-Dynamics-in-Decentralized-Finance-Instruments.webp)

Weighted aggregation, especially by staked collateral, makes a Sybil attack too costly as the attacker needs a prohibitively large amount of capital to gain controlling influence.

### [What Is the "Mark Price" and How Does It Relate to the Oracle Price Feed?](https://learn.greeks.live/path/what-is-the-mark-price-and-how-does-it-relate-to-the-oracle-price-feed/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the "Mark Price" and How Does It Relate to the Oracle Price Feed?](https://learn.greeks.live/wp-content/uploads/2025/10/Precision-Engineering-of-DeFi-Yield-Enhancement-Structures-Highlighting-Staking-Mechanisms-and-Liquidity-Provision-Prowess.webp)

An estimated true value of a contract, calculated using the stable oracle index price to prevent liquidations from temporary price spikes.

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**Original URL:** https://learn.greeks.live/learn/how-does-a-time-weighted-average-price-twap-help-defend-against-price-feed-attacks/
