Hyperliquid Priority Fees
- Hyperliquid put “priority fees” into mainnet alpha on April 13, adding two paid fast lanes: gossip priority for earlier market-data delivery and order priority for faster matching on some trades. - The new order-priority fee is capped at 8 basis points of filled notional, down from 20 basis points in testing, and applies only to immediate-or-cancel orders on HIP-3 markets. - The change turns some latency edge into a fee market paid in HYPE and burned, shifting competition from cables and code toward auctioned access (dwellir.com).
Hyperliquid switched on priority fees in mainnet alpha on April 13, creating paid fast lanes for both market data and order matching. (ourcryptotalk.com) (odaily.news) On Hyperliquid, traders send orders into an on-chain order book, which is a public queue of bids and offers that normally runs on price-time priority. The new system adds a second layer: pay HYPE to see some data sooner or to move some orders ahead in line. (hyperliquid.gitbook.io) (dwellir.com) The first lane is gossip priority, which covers the network’s data relay. Dwellir says Hyperliquid sells five gossip slots in a rolling three-minute Dutch auction, with about 10 milliseconds separating each slot. (dwellir.com) That matters because Hyperliquid can stream transactions to nodes before execution when split_client_blocks is enabled. A winning node gets raw order flow earlier, but not the final fills, so firms still have to predict balances, liquidations, and execution outcomes themselves. (dwellir.com) The second lane is order priority, which lets a trader attach a HYPE-denominated tip to an order. Higher-paying orders rank ahead of lower-paying ones, but the feature is limited to immediate-or-cancel orders on HIP-3 builder-deployed perpetual markets. (ourcryptotalk.com) (hyperliquid.gitbook.io) Hyperliquid cut the order-priority cap to 8 basis points after feedback, down from a 20-basis-point ceiling discussed around testnet rollout. The fee is charged from undelegated staking balance as a fraction of filled notional and paid in HYPE. (binance.com) (cb-terminal.dev) The design changes what “speed” means on the venue. Before this, firms mostly competed on network paths, code, and how quickly they could react to the public feed; now part of that edge can be bought in an explicit auction. (dwellir.com) (docs.chainstack.com) Hyperliquid’s own docs still describe its books as matching in price-time priority, so the new fee layer is best understood as a venue-specific overlay rather than a rewrite of the basic market structure. Cancels also continue to receive priority over executable orders. (hyperliquid.gitbook.io) (ourcryptotalk.com) There is also a token-economics angle. Hyperliquid says trading fees are directed to the community, and outside the trading layer its HyperEVM docs say priority fees are burned; coverage of the rollout says the new HYPE-paid priority fees are burned too. (hyperliquid.gitbook.io 1) (hyperliquid.gitbook.io 2) (ourcryptotalk.com) The practical result is narrower than the hype around it. Gossip priority affects who sees the firehose first, order priority affects only a subset of orders and markets, and both are still labeled alpha on mainnet. (odaily.news) (ourcryptotalk.com) What Hyperliquid has done is turn part of low-latency trading into a posted price. Instead of hiding the advantage in private infrastructure alone, it is now exposing some of that edge as a market anyone with HYPE can bid for. (dwellir.com)
