This looks very interesting. Before everybody starts making the obvious comparisons, note that this is from the same guy that made LZ4, and he is someone who clearly knows what he's doing. I've been following his work for some time. It looks like this is the evolution of Zhuff, an experimental (closed-source) compressor [1]. It is basically LZ4 followed by a fast entropy coder, specifically FSE [2], that is a flavor…
LZ4 allows you to "prime the stream" as it were, but I'm not sure it is really made for this scenario. As far as I can tell, I'd have to essentially have separate compression/decompression calls for each packet, resetting the state to the dictionary between each packet.