It sounds like a good idea for liquidity providers. Incentivising LPs will bring more liquidity and more liquidity will bring more volume. It's a win-win situation.
However, I doubt atomic swaps will be commonly used by traders. My understanding is the majority of DEX traders are willing to use only one chain for their trades. Atomic swaps are not user friendly, which is way I have never seen any atomic swap protocol succeeded so far.
about the win-win situation - this is exactly what we are aiming for.
about atomic swaps - why not be adopted? It is a good way to expand DeFi beyond Ethereum network. An attempt to bridge Bitcoin and Ethereum, combining Bitcoin’s superior liquidity, trading volume, and user base with Ethereum’s composability and ecosystem of open source financial applications.
are they user friendly - we are trying to make them intuitive and executable in a few clicks, we are supporting all kinds of wallets e.g. Ledger for high security and also other solutions like browser extensions and simple social media logins so that users have a choice. Go give it a try and then tell us what you think. What else to be improved.