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What Is the Role of ‘Time-Weighted Average Price’ (TWAP) Oracles in Mitigating MEV in Derivatives?

TWAP oracles provide a price feed that is averaged over a period of time, rather than a single, instantaneous price. This averaging makes it much harder for MEV bots to manipulate the price at a specific moment for a profit.

Derivatives protocols use TWAP to calculate settlement prices, making the target price for manipulation much larger and more expensive to move.

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