How Does the Choice of a Time-Weighted Average Price (TWAP) Calculation Defend against This Attack? ⎊ Path

How Does the Choice of a Time-Weighted Average Price (TWAP) Calculation Defend against This Attack?

The TWAP calculation defends against a settlement window attack by ensuring that the final settlement price is based on the average price over the entire window, not just a momentary spike. To manipulate the TWAP, an attacker must sustain the artificial price for the duration of the window, which is extremely costly and often impractical.

A brief, high-impact attack will have minimal effect on the final averaged price.

How Does Using TWAP Mitigate Market Manipulation during the Settlement Period?

What Are the Security Risks Associated with a TWAP Implementation That Uses a Small Time Window?

How Does Proof-of-Stake Inherently Defend against a Sybil Attack?

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

What Is the Relationship between the Window’s Length and the Cost of Manipulation?

What Is a ‘Governance Attack’ and How Can Token Weight Schemes Defend against It?

How Does a Fast Propagation Delay Impact the Effectiveness of a 51% Attack?

How Does a TWAP Calculation Protect against a “Flash Loan Attack” on a Price Feed?

Glossar

Twap Calculation

Calculation ⎊ Twap Calculation determines the Time-Weighted Average Price of an asset over a specified interval by averaging prices recorded at frequent, fixed intervals, irrespective of volume traded during those intervals.