The purpose of TWAMM ( pronounced “tee-wham”) is to execute one large order by splitting it up into many smaller virtual orders smoothly over time and a fixed number of blocks. In doing so, a user is less vulnerable to sandwich attacks, suffers less from price impact, and reduces the manual effort required to execute these orders over time. This concept was first introduced by Paradigm and implemented by Frax Finance. TWAMM was a particularly beneficial use case for Frax to maintain the stability of the FRAX and FPI stablecoin. In traditional finance, this function is often known as a time-weighted average price (TWAP) order.
