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What Is the Trade-off between Using TWAP and Providing a Fast, Responsive Price Feed?

Long TWAP $=$ High Security $/$ Low Responsiveness (Stability vs. Latency)
Greeks.Live20.11.25

What Is the Trade-off between Using TWAP and Providing a Fast, Responsive Price Feed?

The trade-off lies in stability versus responsiveness. A longer TWAP window (e.g.

1 hour) provides high stability and strong resistance to flash loan attacks, but it is slow to reflect genuine, rapid market movements. A shorter TWAP window (e.g.

5 minutes) is more responsive but offers less protection against manipulation. Protocols must balance the need for security against the need for a price that reflects current market conditions for accurate trading.

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