What Are Time-Weighted Average Prices (TWAP) and Their Use Cases?

[kevin1]

TWAP strategies split large trades over time to reduce market impact. In DeFi, TWAPs are critical for oracles, liquidations, and algorithmic trading, helping minimize slippage during volatile periods.

[kelson10]

TWAP smooths volatile market data by averaging prices over time, ideal for algorithmic trading.

[alex10]

It’s widely used to execute large orders without causing price impact or slippage.