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description: Order book mode trading
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# Perpetual Contract Trading

HoneyBee has introduced perpetual contract trading in order book mode, which is provided by market makers and the DAO Honey Fund pool. Users' orders are directly matched with the market maker pool at the on-chain trading price, and there is no slippage during the trading phase.

Regarding pricing, HoneyBee uses the common constant product formula x\*y=k in AMM. On this basis, HoneyBee also introduces index prices and mark prices. The index price corresponds to the oracle price. When the market price suddenly fluctuates, the index price can ensure that users' positions are not affected by liquidation. HoneyBee also uses a customized oracle to retrieve the middle price from three CEXs (Binance, Coinbase, and BitFinex).

In addition, prices are updated at the beginning of each block, ensuring that each transaction within the same block receives the same updated execution price, which helps prevent front-running.
