@devjoshstevens@0_xMasque@Polymarket@mustafap0ly It also:
weakens the link to the real market price at expiry,
reduces the importance of real-time information flow,
creates different manipulation incentives,
and makes hedging against external exchanges less natural.
@devjoshstevens@0_xMasque@Polymarket@mustafap0ly I think TWAP defeats the purpose of 5-minute prediction markets.
The whole point of ultra-short markets is real-time price discovery and reacting to the final move. TWAP turns it from “who predicted the close correctly” into “who optimized around an averaging window.”