Polymarket adjusts short-term encryption market settlement rules to a time-weighted average price

On 8 August, Polymarket will replace a single price snapshot with a time-weighted average price in the short-term encrypted currency market for the settlement of related contracts. Previous research and complaints from traders indicate extensive manipulation of their settlement chain. A study of the 5-minute bitcoin contract found that part of the large money-fixed transactions appeared in the last few seconds prior to settlement and were suspected to drive price changes; most of the losses were borne by the scattered parties in the potentially manipulated settlement window. The new system will use the Chainlink Datastreams and the short-term TWAP window. The mechanism is similar to the protections of the competition platform Kalshi, which relies on regulated price indices and moving averages to increase the difficulty and cost of short-term price distortions。