What’s TWAP and why should I care?

Algorithmic Peg Maintenance

TWAP or Time Weighted Average Price is the determining factor in governing when staked $MSHARE will print $MAGIK tokens. The Dungeon will only print $MAGIK every epoch (or 6 hours) when $MAGIK’s TWAP is greater than 1.01.

TWAP is determined by taking a time weighted average price of $MAGIK during the previous epoch. It isn’t enough to simply push up the price of $MAGIK prior to the close of an epoch, as this would allow for easy exploitation. Instead the protocol looks for stability in the maintenance of $MAGIK’s peg.

This is one of the many reasons the strategy guides strongly recommend slow and healthy profit taking.