Pendle will shift all incentives to limit orders, stating that LOs now account for 71% of trading volume.

According to Mars Finance, on May 26th, DeFi yield protocol Pendle Finance announced that it will concentrate its co-incentives on limit orders (LO) to improve the platform's liquidity depth and trade execution efficiency. Pendle stated that since launching its full LO incentive system approximately two months ago, limit orders have increased from 44% to 71% of the platform's total swap trading volume, and monthly LO trading volume has nearly doubled, becoming a core driver of Pendle's trading activity. Data shows that Pendle currently allocates approximately 6,500 PENDLE incentives weekly to limit orders to support approximately $400 million in notional order book depth. The platform claims that, annualized, every $1 of incentive can generate approximately $800 in liquidity, achieving a capital efficiency of approximately 800 times. Pendle also announced new joint incentive rules: if a project provides incentives in PENDLE, it will receive an additional $0.22 in PENDLE for every $1 invested; if incentives are provided in other tokens, it will receive $0.15 in PENDLE for every $1 invested. If the overall demand exceeds the weekly incentive cap of 9,000 PENDLE, the 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 prioritize the limit order ecosystem.