What Is the Trade-off between Using a TWAP and a Real-Time Price (RTP) Feed?
The trade-off is between stability and freshness. A TWAP offers high stability and manipulation resistance by smoothing out volatility, but the price is inherently lagged and not "real-time." An RTP feed offers maximum price freshness and accuracy at the moment of the trade, but it is highly vulnerable to momentary price spikes and flash loan attacks.
The choice depends on the application's priority: security (TWAP) or speed (RTP).