BlockBeats News, May 26th, DeFi yield protocol Pendle Finance announced that it will concentrate its co-incentives on the Limit Order (LO) mechanism to enhance platform liquidity depth and trade execution efficiency.

Pendle stated that since the full LO incentive system was launched about two months ago, the proportion of limit orders to total Swap transaction volume on the platform has increased from 44% to 71%. Monthly LO transaction volume has nearly doubled and has become a core driver of Pendle's trading activity.

Data shows that Pendle currently allocates approximately 6,500 PENDLE incentives per week to limit orders, supporting around $400 million in notional order book depth. The platform stated that on an annualized basis, each $1 of incentive can bring about $800 in liquidity, resulting in a capital efficiency of about 800 times.

Pendle also announced new co-incentive rules: if a project provides incentives in PENDLE, each $1 contributed will receive an additional $0.22 worth of PENDLE; if incentives are provided in other tokens, then each $1 will receive a $0.15 PENDLE ratio. If overall demand exceeds the weekly limit of 9,000 PENDLE incentives, the rewards will be distributed proportionally.

Pendle stated that LO has proven to be the most effective tool in improving market quality and liquidity depth, and future co-incentive resources will be primarily focused on the limit order ecosystem.