How Is the Optimal Time Window for a TWAP Determined in a DeFi Protocol?

The optimal TWAP window is a balance between security and responsiveness. It is typically determined by analyzing the average duration of a flash loan attack (usually one block) and the typical time required for genuine market movements.

For high-value assets, a longer window (e.g. 10-30 minutes) is often chosen to provide strong attack resistance, while for less critical or stable assets, a shorter window may suffice.