Clear DefinitionsTWAM (Time-weighted Automated Market Maker)
1 min read
Pronunciation
[tee-dub-uhl-ay-em]
Analogy
Think of TWAM like drip-feeding a large order into the market slowly, rather than dumping it all at once and moving the price drastically.
Definition
An AMM design that executes large orders over a scheduled time window to minimize price impact by slicing and executing trades incrementally.
Key Points Intro
TWAM schedules trades to spread orders evenly over time and reduce slippage.
Key Points
Scheduled execution: slices a large order across intervals
Price impact: minimizes market movement per slice
Algorithmic: uses smart contract logic to manage slices
Gas overhead: additional calls increase transaction costs
Example
Technical Deep Dive
TWAM contracts maintain an order queue with parameters (amount, start, end). At each block or time tick, the contract computes the slice volume and invokes the underlying AMM’s swap function. Gas optimizations batch multiple slices and use EIP-3156 flash loans for capital efficiency.
Security Warning
Front-running bots may detect and sniper-attack individual slices if gas prices are not managed carefully.
Caveat
Increased complexity leads to higher gas costs and requires careful scheduling.
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