Time Weighted Average Price (TWAP) Oracles determine the average price of a token for a determined period.

For example, a 7 days TWAP Oracle will calculate the average price of a token for the past 7 days.

These oracles can be used for solutions to many different DeFi problems.

When fetching the current price of a token, using a ChainLink Oracle would be much more preferable, because TWAP Oracles tend to be less accurate. However, TWAP Oracles can be created for any token while ChainLink's price feed is limited to a handful number of tokens.