# CAR #004: Volume Weighted Average Price (VWAP) | Methodology

**URL:** <https://forum.diadata.org/t/car-004-volume-weighted-average-price-vwap-methodology/179>\
**Category:** CARs - Community Approval Requests\
**Tags:** methodology\
**Created:** [February 4, 2022, 3:04pm UTC](https://forum.diadata.org/t/car-004-volume-weighted-average-price-vwap-methodology/179 "2022-02-04T15:04:48Z")\
**Posts on this page:** 1\
**Page:** 1

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**Author:** ![emre.kara](https://avatars.discourse-cdn.com/v4/letter/e/cdc98d/32.png) [@emre.kara](https://forum.diadata.org/u/emre.kara)\
**Post date:** [February 4, 2022, 3:04pm UTC](https://forum.diadata.org/t/car-004-volume-weighted-average-price-vwap-methodology/179/1 "2022-02-04T15:04:48Z")

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`Community Approval Request #004: Volume Weighted Average Price `  
`Date: Fri, 04 February 2022`  
`Author: DIA Core Team`  
`Status: Approved`

In this fourth Community Approval Request (CAR), the DIA DAO community will discuss, improve and approve the volume Weighted Average Price methodology, a very commonly used filter by DIA for its oracle price determination.

## 

**Trade Collection**

All trades from the queried time range are collected and weighted by their volume. Weighting means that the (normalized) volume of the trade is multiplied by its executed price.

## 

**Price Calculation**

As soon as the block has been finalized, the VWAP price of these prices is calculated. This is done by accumulating the previously calculated volume-price-products of all trades and dividing them by the sum of all volumes combined.

The result is then returned as the result of the filter operation.

## 

**Filter Application**

The VWAP filter is used in DIA’s price determination. Our API can display the latest VWAP filter values, i.e., the filter results from a 120 second interval of all recorded trades for an asset.

## 

**Implementation**

The filter is implemented as part of the FiltersBlockService in [this file in our Github repository](https://github.com/diadata-org/diadata/blob/master-ibm-tmp/internal/pkg/filtersBlockService/FilterVWAP.go).

## **[Head over to Snapshot to vote](https://vote.diadata.org/#/proposal/0x69be5d17d80c87480aff9be9effe3617cc4dcac0ef593ba6baa4651b45228f50)**

### Timeline:

- **Discussion:** 4 Feb - 11 Feb
- **Vote:** 11 Feb - 18 Feb
- **Approval:** 18 Feb