BlockBeats report, on May 26, the DeFi yield protocol Pendle Finance announced it will concentrate its co-incentives on the Limit Orders (LO) mechanism to enhance platform liquidity depth and trade execution efficiency.
Pendle stated that since launching its full limit order incentive system approximately two months ago, the proportion of limit orders in the platform’s total swap volume has increased from 44% to 71%, with monthly limit order volume nearly doubling and now serving as the primary driver of Pendle’s trading activity.
Data shows that Pendle currently allocates approximately 6,500 PENDLE tokens per week as incentives to support a notional order book depth of around $400 million. The platform states that, on an annualized basis, each dollar of incentive generates approximately $800 in liquidity, achieving a capital efficiency of about 800x.
Pendle has also announced new joint incentive rules: if a project provides incentives in PENDLE, each dollar invested qualifies for an additional $0.22 in PENDLE allocation; if incentives are provided in other tokens, each dollar invested qualifies for $0.15 in PENDLE allocation. If overall demand exceeds the weekly incentive cap of 9,000 PENDLE, rewards will be distributed proportionally.
Pendle stated that LO has proven to be the most effective tool for improving market quality and liquidity depth, and future joint incentive resources will be prioritized around the limit order ecosystem.