Time Weighted Average Price (TWAP) Oracles determine the average price of a token for a determined period.
For example, a 7 day TWAP Oracle will calculate the average price of a token for the past 7 days.
These oracles can be used as solutions to many, many different DeFi problems!
Why Not Use TWAP Oracles All The Time?
When fetching the current price of a token, using a ChainLink Oracle as opposed to TWAP oracles would be much more preferable, as TWAP Oracles tend to be less accurate.
However, the main advantage is that TWAP Oracles can be created for any token while ChainLink's price feed (for a normal oracle) is limited to just a handful of tokens.
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