What Is the Trade-off between Using a TWAP Oracle and a Real-Time Price Feed?

The trade-off is between security and latency. A TWAP (Time-Weighted Average Price) offers higher security by mitigating price manipulation risk, but it introduces latency because the reported price is always an average of past prices, not the current real-time price.

A real-time feed offers low latency but is more vulnerable to instant price manipulation attacks.