TWAP, or Time-Weighted Average Price Automation, is a trading strategy that divides a large order into smaller orders, which are then executed at regular intervals over a specified period. Its primary goal is to minimise the trade's market impact on liquidity pools, selling or buying an asset throughout a predefined time, getting a more homogeneous price.
Supported Chains: Mainnet, Arbitrum, and Mode | Support for Blast soon
Balance Requirements: Users must ensure they have sufficient balance of the chosen input token within their Console wallet to cover the total trade amount for the duration of the TWAP automation.
Supported Tokens: ETH is not supported as an input token due to restrictions in the multi-call process. Any ERC20 is supported, as long as a swap route between the two selected tokens can be found. Users can search for token name or paste contract addresses to add a token.
Automation Size Threshold: The automation will alert the user in case the predicted execution gas cost is larger than 30% of the total input token size.
Who Is it For?
TWAP is suitable for those who wish to mitigate the impact of large trades on market price, offering a strategic, automated approach based on predefined intervals, with privacy of automation parameters as well as added randomisation of timing and sizing.
How It Works?
TWAP Initiation requires the signature of a single multicall transaction, which performs the following actions:
Sub-Account Configuration:
For new users implementing their first automation, the transaction creates their Console Automation Sub-Account, a segregated Safe owned by their Main Console Safe—and introduces a Custom Policy that restricts its operations to the user-specified automation parameters.
For users with previous automations, the existing Automation SubAccount is assigned to the new task.
Token Approval and Transaction Authorisation:
On-chain approval is provided to the Automation Sub-Account, allowing it to handle the specific token amount necessary for the automation. This enables the SubAccount to seamlessly pull the input token, execute the swap, and return the output token to the Main Console Safe within a single transaction.
Automation Parameters Registration:
Automation settings, including the minimum price threshold, randomization settings, and maximum slippage, are detailed and registered. These parameters play a pivotal role in monitoring and triggering the automated order execution, managed privately off-chain.
Features:
Randomised Execution: Adjusts order execution timing and size variably to prevent pattern detection.
Multi-swap route. Swaps are automatically routed through 7 swap venues and aggregators including: Matcha, Uniswap, 1inch, Odos.
Minimum Price: Set a floor price, below which the orders won’t execute
Automatic Slippage: Slippage is fine-tuned automatically for optimal execution, increased incrementally after sequential retries, handled by the Brahma relayer.
Fees
Setting up TWAP automation may incur a one-time gas fee for the creation of a new Automation SubAccount on the Ethereum mainnet (this is gas cost for the deployment of the Sub-Account Safe wallet, no fee is levied by Brahma). A 0.15% (15 bps) fee is charged for successful TWAP orders. This fee is strictly associated with successful order completions.
While striving for efficiency and security, users need to comprehend the potential risks and costs involved. Our team is dedicated to offering support and ensuring optimal user experience.