> For the complete documentation index, see [llms.txt](https://docs.boba.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.boba.xyz/agents/boba-agents/core-capabilities/spot-trading/twap-orders.md). # TWAP Orders *** ### Overview TWAP (Time-Weighted Average Price) splits a large order into equal-sized chunks executed at regular intervals. Unlike DCA which focuses on long-term accumulation, TWAP is designed for executing large trades efficiently—minimizing price impact and avoiding detection by MEV bots. **When to use TWAP:** * You're executing a large order relative to available liquidity * You want to minimize market impact and slippage * You need to disguise a large position entry or exit * You're trading tokens with thin liquidity * You want predictable execution across a defined time window **When to use DCA instead:** * You're accumulating over days/weeks for investment purposes * You want to average into volatile price swings * Timing within hours doesn't matter *** ### How TWAP Works TWAPs split your order into smaller trades executed at regular intervals, minimizing price impact and achieving a better average price. Below is an example of how the order execution flow happens: #### Execution Flow ``` 1. You submit TWAP order → Parameters validated 2. Order split into chunks → Equal USD amounts calculated 3. First chunk executes → Market buy/sell at current price 4. Wait for interval → Timer with optional randomization 5. Next chunk executes → Liquidity has partially replenished 6. Repeat until complete → All chunks filled 7. Summary generated → Average price across all executions ``` #### Example: $50,000 TWAP Buy over 1 Hour | Chunk | Time | Price | Amount | Tokens Received | | --------- | ---- | ----- | ----------- | --------------- | | 1 | 0:00 | $1.02 | $2,500 | 2,451 | | 2 | 0:03 | $1.03 | $2,500 | 2,427 | | 3 | 0:06 | $1.01 | $2,500 | 2,475 | | 4 | 0:09 | $1.02 | $2,500 | 2,451 | | ... | ... | ... | ... | ... | | 20 | 0:57 | $1.04 | $2,500 | 2,404 | | **Total** | — | — | **$50,000** | **48,780** | **TWAP average price: $1.025** If executed as a single $50K market order, the price impact could have pushed execution to $1.05-1.08, costing an extra $1,200-2,600. *** ### Example Prompts Here are natural language prompts that trigger TWAP orders: | Prompt | Interpretation | | ---------------------------------------------------------------- | ------------------------------------- | | "TWAP buy $50,000 of SOL on Solana over 4 hours" | Split $50K into chunks over 4h window | | "Execute $20,000 sell of WIF on Solana using TWAP over 1 hour" | TWAP sell across 1 hour | | "Buy $100,000 of JUP on Solana slowly over 12 hours" | Large TWAP buy over 12h | | "TWAP $10,000 into BONK on Solana, 30 minute window" | Fast TWAP for volatile token | | "Sell $25,000 of RAY on Solana with TWAP, minimize impact" | TWAP sell with default duration | | "Split my $15,000 ETH buy on Base into 20 orders over 2 hours" | Custom chunk count specified | | "TWAP out of my POPCAT position on Solana, $30,000 over 6 hours" | Large exit via TWAP | *** ### Managing TWAP Orders #### View Active TWAPs ``` "Show my active TWAP orders" "Status of my SOL TWAP" "How many chunks left on my WIF TWAP?" ``` #### Pause/Resume ``` "Pause my BONK TWAP on Solana" "Resume my JUP TWAP" ``` #### Cancel ``` "Cancel my SOL TWAP on Solana" "Stop all TWAP orders" ``` #### Speed Up / Slow Down ``` "Speed up my WIF TWAP to finish in 30 minutes" "Slow down my SOL TWAP, extend to 6 hours" ``` *** ### Randomization #### Why Randomization Matters Predictable order patterns are exploited by MEV bots: ``` Without randomization: - Bot detects pattern after 2-3 chunks - Front-runs remaining chunks - You pay inflated prices With randomization: - Timing varies ±30% around target interval - Pattern harder to detect - MEV extraction reduced ``` **Example with randomization:** * Target interval: 3 minutes * Actual intervals: 2:05, 3:45, 2:30, 4:10, 2:55... *** ### Tips for Effective TWAP below are some quick tips to ensure your DCA's are effective: 1. **Size chunks to liquidity** — Each chunk should be <1% of pool liquidity for minimal impact. 2. **Match duration to urgency** — Longer duration = better price, but more exposure to price movement. 3. **Enable randomization** — Always keep this on unless you have a specific reason not to. 4. **Monitor large TWAPs** — Check progress periodically for orders >$50K or >4 hours. 5. **Set pause conditions** — Protect against buying into pumps or selling into dumps. 6. **Don't over-slice** — Too many tiny chunks increase total fees without much benefit. *** --- # Agent Instructions This documentation is published with GitBook. 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