Time-Weighted Average Pricing Security

Time-weighted average pricing security is a mechanism used to protect against price manipulation by calculating the average price of an asset over a specified period. Instead of relying on the instantaneous spot price, which is vulnerable to flash loan attacks, the protocol uses a moving average that is much harder to influence.

This ensures that even if an attacker manages to spike the price for a brief moment, the impact on the protocol's state or collateral calculation is minimal. While this introduces some latency in price updates, it provides a crucial layer of defense for protocols that depend on accurate asset valuations.

It is a standard best practice in modern DeFi design to prevent oracle-based exploits.