Skip to main content
Learn

What Is the Role of Time-Weighted Average Price (TWAP) in DeFi Oracles?

TWAP is used by DeFi oracles to calculate the average price over time, smoothing out temporary price spikes and making the oracle feed resistant to flash loan manipulation.
Greeks.Live09.11.25

What Is the Role of Time-Weighted Average Price (TWAP) in DeFi Oracles?

Time-Weighted Average Price (TWAP) is a method used by DeFi oracles to calculate the average price of an asset over a specific time period, rather than using a single instantaneous price. This technique is employed to mitigate the risk of flash loan attacks and price manipulation.

By averaging the price over time, temporary, large-volume price spikes are smoothed out, making the oracle feed more resistant to manipulation.

What Is a Time-Weighted Average Price (TWAP) Oracle?
How Does a Flash Loan Attack Exploit a Simple Spot Price Oracle?
What Is the Difference between a Spot Price Oracle and a Volume-Weighted Average Price (VWAP) Oracle?
How Does a Time-Weighted Average Price (TWAP) Oracle Mitigate Flash Loan Attacks on a Derivatives Contract?

About

Contact

Editorial Policy

Terms of Service

Privacy Policy

Cookie Policy

© 2025 Greeks.Live

All Rights Reserved

Greeks.Live RFQ

Build by Noo on Engine

Source: The content on this website is produced by Greeks.live's proprietary analysis systems, which utilize advanced Large Language Models (LLMs). This information might not be subject to a full human review before publication and may contain errors.
Responsibility: You should not make any financial decisions based solely on the content presented here. We strongly urge you to conduct your own rigorous due diligence and to consult a qualified, independent financial advisor.
Purpose: All information is intended for informational purposes only. It should not be construed as financial, investment, trading, or any other form of professional advice. News and data are not trading signals.
Risk: The cryptocurrency, derivatives, and options markets are highly volatile and carry significant risk. By using this site, you acknowledge these risks and agree that Greeks.live and its affiliates are not responsible for any financial losses you may incur.