Polymarket adopts TWAP settlement to curb price manipulation

Polymarket will shift its settlement method to a time-weighted average price, or TWAP, to curb artificial price swings, CoinDesk reported. The platform decided to replace the single price snapshot method used in short-term crypto markets with TWAP. Earlier, researchers at Stanford University in the U.S. and Singapore Management University said an analysis of five-minute Bitcoin contracts found a pattern in which large trades hit Binance in the final seconds before settlement, moved prices, and were followed by settlement. They added that prices repeatedly snapped back to prior levels shortly after unusual large trades on Binance caused the moves. Polymarket said it made the change in response to the findings and continued complaints from traders.