Polymarket is changing its settlement method to Time-Weighted Average Price (TWAP) to prevent artificial price fluctuations. According to CoinDesk, Polymarket has decided to adopt the TWAP method instead of the Single Price Snapshot method, which was previously used in short-term cryptocurrency markets. Earlier, researchers from Stanford University in the US and Singapore Management University analyzed 5-minute Bitcoin contracts and pointed out that they found a pattern where large-scale transactions occurred on Binance a few seconds before settlement, leading to price adjustments before settlement. They explained that the phenomenon of prices quickly returning to their original levels immediately after abnormal large-scale transactions on Binance repeatedly occurred. Polymarket stated that it made this decision based on the research results and continuous complaints from traders.
