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Jun 7

Service Denial, Order Bombing, & The Living Dead: TWAMM Arb Oddities

IntroductionA theoretical attack on Time-Weighted Average Market Maker (TWAMM) pools is introduced and empirically shown to be of negligible concern to arbitrageurs herein. The effect is mitigated further in practice by the practical settings of a TWAMM pool’s order interval, be it block or time based, collating order expiries at fixed intervals for increased gas efficiencies. Additionally, it is shown that in implementation, the attack is largely circumvented by the Ethereum Virtual Machine’...

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