Polymarket switches crypto settlements to TWAP pricing August 7
Polymarket will adopt time-weighted average price (TWAP) settlements for its crypto markets starting August 7, 2026. Previously, crypto markets used single price snapshots at expiry. Chainlink launched TWAP mainnet feeds with 30-second and 60-second variants, and Polymarket is preparing to adopt the mechanism. The switch aims to reduce manipulation risk tied to single snapshot settlements during low-liquidity windows.
Polymarket's move to TWAP settlements replaces a 30-second window that left crypto markets exposed to price spikes in thin liquidity. Traders holding positions near expiration now face a smoother, harder-to-game resolution price. This directly addresses prior manipulation incidents that damaged trust in event-contract outcomes.
For Polymarket, the upgrade arrives as CFTC rulemaking and congressional bills threaten to restrict the entire sector; self-policing integrity gaps beats having regulators close them. Chainlink's new mainnet feeds with dual variants give Polymarket pricing infrastructure that rivals can license too, so the competitive advantage is temporal. The platform that settles most reliably will retain sophisticated traders as federal scrutiny intensifies.