What Is the Difference between a Volume-Weighted Average Price (VWAP) and a TWAP?

A TWAP calculates the average price weighted by the time the price was valid, focusing on price stability over time. A VWAP calculates the average price weighted by the trading volume at each price point.

VWAP is generally considered a better measure of the true cost of an asset for large trades, but it can be more easily manipulated by an attacker who executes a large, single-transaction trade to artificially inflate the volume at a manipulated price.