In Which Financial Derivative Contracts Is a Robust Price Feed like TWAP Most Critical?

A robust price feed like TWAP is most critical in decentralized lending protocols and perpetual futures contracts. In lending, the price feed determines collateral value and triggers liquidations, making manipulation highly profitable for attackers.

In perpetual futures, the feed is used to calculate the index price, mark price, and funding rates, which directly impact the profit and loss of traders. An inaccurate feed in either case can lead to systemic risk and massive unauthorized transfers of value.