Polymarket Adopts TWAP Settlement to Combat Price Manipulation in Crypto Markets

BitcoinWorld Polymarket Adopts TWAP Settlement to Combat Price Manipulation in Crypto Markets Polymarket, a leading decentralized prediction market platform, has announced a shift to a time-weighted average price (TWAP) settlement method for its short-term crypto markets.

The move, first reported by CoinDesk, replaces the previous single price snapshot approach and aims to reduce the risk of price manipulation around settlement times. Why the Change?

The decision follows research from Stanford University and Singapore Management University, which analyzed five-minute Bitcoin contracts on Polymarket.

The researchers identified a recurring pattern: large trades on Binance, one of the world’s largest cryptocurrency exchanges, often occurred in the final seconds before settlement, moving the price in a way that benefited certain traders.