In the DeFi arena, flash loan attacks are considered the most ruthless harvesting tools. Hackers target the characteristic of blockchain "atomic transactions"—no collateral needed, they can siphon off hundreds of millions of dollars in a single go. Their tactics are quite classic: instantly swooping into a liquidity-scarce DEX, a few trades skyrocketing the price of a certain token, then using this artificially inflated price to heavily collateralize in lending protocols, and finally repaying everything within the same block. By the time the protocol reacts, the hackers have already disappeared with the profits.



The problem is—traditional oracles using Time-Weighted Average Price (TWAP) can't withstand such attacks. Under extreme capital conditions, relying solely on temporal smoothing is nothing but a paper tiger.

But these players overlook a fundamental logic: flash loans are essentially "faking market consensus." Hackers attempt to use short-term capital advantages to fabricate a false market consensus on the price out of thin air. To break this kind of deception, the source must be addressed.

Someone thought of it—don't just look at time, add trading volume as a weight. This is the core idea behind Time-Volume Weighted Average Price (TVWAP). Unlike TWAP, which considers only a single time dimension, TVWAP introduces "real trading volume" into the pricing model. In this logic, whether a price is trustworthy depends not only on how long it has persisted but more importantly on how much actual capital is buying and selling. The characteristic of flash loans is large capital but virtual trading volume—precisely what the dual-dimension design of TVWAP can eliminate. Any attempt by hackers to throw money in to manipulate the price will be blocked by the trading volume weight threshold.
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DeFiGraylingvip
· 11h ago
Wow, finally someone has exposed this trick. TWAP is really just a paper tiger; flash loan players have long figured it out. The move of combining TVWAP with trading volume weighting is indeed clever, but the question is, who can guarantee that the trading volume itself isn't manipulated?
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WhaleMistakervip
· 11h ago
Flash loans are really outrageous; within a single block, you can exploit the entire protocol for profit. TWAP truly can't withstand it. The introduction of volume-weighted TVWAP is somewhat effective; at least it can block those paper hands from manipulating the market.
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LiquidationWatchervip
· 11h ago
The flash loan trick is really clever, but I like the TVWAP approach. Finally, someone thought of cutting off from the volume perspective.
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ProbablyNothingvip
· 11h ago
Honestly, TWAP has long been outdated, and hackers are coming up with even more outrageous tricks using this method. Flash loans are indeed a trap, but can TVWAP really solve it? I'm a bit skeptical. Another "perfect solution," just waiting to be broken by the next wave of clever people. Volume weighting sounds good, but I wonder if it will be bypassed by some bizarre trading structures. The cat-and-mouse game in DeFi never ends; TVWAP might just be temporarily ahead. This theory looks good on paper, but in practice, it will probably still fail.
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BtcDailyResearchervip
· 11h ago
TWAP this thing should have been eliminated long ago. Once flash loans hit, its true nature is exposed. We need to rely on something like TVWAP, which operates on two dimensions.
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quiet_lurkervip
· 11h ago
It's the same old story of TWAP getting beaten... but can TVWAP really save the day? It feels like hackers will come up with new tricks next time.
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