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Polymarket Altering Resolution of Timed Crypto Markets in Quest to Damp Manipulation
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Todd got his start in financial markets as a reporter with Bloomberg News... Click for moreIn an effort to boost integrity and clamp down on potential manipulation, Polymarket is altering its resolution methodology for timed cryptocurrency markets.
Polymarket is moving to TWAP settlement for timed cryptocurrency markets.
“Time-weighted Average Price (TWAP) is a well-known trading algorithm which is based on the weighted average price and is defined by time criterion,” according to Interactive Brokers.
In simple terms, the researchers found that timed cryptocurrency markets were susceptible to manipulation by automated trading programs, noting that $8.2 million in wealth was transferred from unwitting retail traders to professional tech-backed platforms.
Data confirm the importance of the Polymarket TWAP move.