Limit Orders
Pendle's Limit Order system enables gasless, off-chain order creation with secure on-chain settlement. It allows users to place orders at specific implied APY rates, which are matched and settled through the Limit Order smart contract.
How It Works
- Makers create and sign limit orders off-chain (no gas required). Orders specify a desired implied APY rate and are stored on Pendle's backend.
- Takers query available orders via the API and fill them on-chain by calling the Limit Order contract.
- The Limit Order contract settles orders atomically, transferring tokens between makers and takers at the agreed rates.
Limit orders are also integrated into the Pendle Hosted SDK — when enabled, the SDK automatically includes limit order liquidity alongside AMM liquidity to improve execution prices, especially for large trades.
Order Types
| Order Type | Description |
|---|---|
SY_FOR_PT | Swap SY (or a supported token) for PT |
PT_FOR_SY | Swap PT for SY (or a supported token) |
SY_FOR_YT | Swap SY (or a supported token) for YT |
YT_FOR_SY | Swap YT for SY (or a supported token) |
Sections
- Limit Order Contract — Smart contract reference: order struct, method definitions, and callback mechanism
- Create a Limit Order — Guide for makers: generate, sign, and submit orders
- Cancel Limit Orders — Guide for makers: cancel specific orders or invalidate all via nonce
- Fill a Limit Order — Guide for takers: query and fill orders on-chain
API Reference
- Maker APIs — Generate order data, submit orders, view active orders
- Taker APIs — Query available orders for filling
Maker Incentives
Certain markets offer token rewards to makers who provide liquidity through limit orders.
How Incentives Work
- Epochs: Incentives are distributed on a weekly basis.
- Qualifying orders: To be eligible, an order must be placed within the market's configured APY range and remain active for a minimum period. Orders that are placed and immediately canceled do not qualify.
- Reward calculation: Rewards are proportional to your order's effective making amount relative to the total qualifying volume within the epoch.
Incentive Modes
| Mode | Description |
|---|---|
RELATIVE | Rewards apply to orders placed within a configured APY range relative to the current market rate |
ABSOLUTE | Rewards apply to orders placed within a fixed APY range |
Qualifying for Rewards
- Check whether the market has an active incentive program.
- Place an order within the market's configured APY range.
- Keep the order active — rewards accumulate proportionally to your share of total qualifying making volume within the epoch.