What platform is this happening?
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.
There's lack of usage for DEXes and with these incentives, this could be a good start for them. I still don't understand the whole concept of atomic swaps and jelly, that's the reason why you haven't seen anyone succeeded because lack of exposure I guess or the majority doesn't like it.