TWAP (Time-Weighted Average Price)

Time-Weighted Average Price (TWAP) is the average price of an asset over a defined period, weighting each time interval equally regardless of volume.

TWAP divides a window into equal intervals and averages the price across them, so a brief spike or dip has limited effect on the result. It is used to benchmark execution and, on-chain, as a manipulation-resistant reference for oracles because moving a TWAP requires sustaining a price over time rather than for a single block. TWAP can be derived from a series of spot readings or from OHLCV candles over the chosen interval, both available as cheap reads in our market-data primitives.