What Are the Potential Consequences of Setting a TWAP Time Period That Is Too Short or Too Long?

Setting a TWAP time period that is too short makes the oracle more susceptible to price manipulation, as it is easier for an attacker to influence the price over a shorter period. This can lead to unfair liquidations, arbitrage losses, and other security vulnerabilities.

Setting a TWAP time period that is too long makes the oracle less responsive to real-time market changes, which can result in stale prices and a poor user experience. This can also create arbitrage opportunities and make the protocol less competitive.