MemCast
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#cancel‑priority1#execution2#toxic-flow2
Cancel priority improves execution for genuine users without hurting price discovery
  • By removing toxic orders early, the order book becomes cleaner, allowing market makers to provide tighter quotes.
  • Jeff notes that the net effect on volume is a modest decrease, but the quality of trades improves.
  • The design does not impede price discovery because price accuracy at sub‑second intervals remains acceptable for most traders.
  • This trade‑off reflects Hyperliquid’s focus on user experience over raw throughput.
Jeff PersUnchained00:12:24

Supporting quotes

Quote
00:12:24
“If you care about volume above all else you wouldn't make this change because the net effect of this change is to decrease volume.” — Jeff Pers
Quote
00:12:48
“but if you're a little if you're a little bit more like first principles about it... then all of a sudden this change looks very good even though no one's doing it.” — Jeff Pers

From this concept

Cancel-Priority Design: Cutting Toxic Flow

Hyperliquid deliberately prioritizes order cancellations over new taker orders, a design choice that reduces toxic high-frequency activity while preserving price discovery for genuine traders.

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