Polymarket Shifts to TWAP Settlement, Addressing 5-Minute Bitcoin Manipulation

Polymarket adopts time-weighted average pricing for short-term crypto contracts to mitigate settlement manipulation. Chainlink Data Streams will enforce this, protecting retail investors from last-second price distortions.

Woofun AI reports that Polymarket is replacing single-price snapshots with time-weighted average prices for short-term cryptocurrency contract settlements. This change addresses widespread manipulation concerns, where large-scale transactions on Binance allegedly distorted prices in the final seconds before settlement, causing losses for retail investors. The new mechanism utilizes Chainlink Data Streams and short-term TWAP windows, mirroring protective measures used by competitor Kalshi to raise the cost of short-term price distortions.