Pendle shifts incentives to limit orders, boosting swap volume to 71% and doubling monthly trades.

Pendle Finance has focused its co-incentive program exclusively on limit orders, leading to limit orders making up 71% of total swap volume and nearly doubling monthly trading activity. Users placing unfilled short yield token limit orders within target yield ranges can earn up to 200% APR in PENDLE tokens, incentivizing liquidity to remain on the order book and deepen market depth. This strategic shift shows traders actively prefer limit orders over AMM swaps, improving price precision and reducing impact. Pendle’s approach may signal that concentrated incentives are more effective than diversified ones, though the sustainability of rewards remains to be tested as emissions taper.