# Overview

## Feature Comparison between V1 and V2

<table><thead><tr><th width="207">Feature</th><th width="156">V1</th><th>V2</th></tr></thead><tbody><tr><td>Messaging Cost</td><td>High</td><td>Low</td></tr><tr><td>Emissions</td><td>High</td><td>Low</td></tr><tr><td>Transaction Batching</td><td>No</td><td>Yes</td></tr><tr><td>Protocol Fee</td><td>Fixed</td><td>Flexible</td></tr><tr><td>Liquidity Management</td><td>Delta Algorithm</td><td>AI Planning Module</td></tr><tr><td>Number of Supported  Chains </td><td>12</td><td>13 + Hydra Chains</td></tr></tbody></table>

## Cost Reduction

V2 reduces costs of bridging compared to V1 through the introduction of [transaction batching](https://stargateprotocol.gitbook.io/stargate/v2-user-docs/whats-new-in-stargate-v2/transaction-batching) (Stargate Bus), while retaining the option for one-to-one transactions (Stargate Taxi).

## More Chains

V2 introduces a Bridging as a Service product called “[Hydra](https://stargateprotocol.gitbook.io/stargate/v2-user-docs/whats-new-in-stargate-v2/hydra).” This feature allows for the seamless flow of USDC, USDT, and ETH to chains without native assets. Hydra locks these assets in core Stargate pools on source chains and mints corresponding assets on Hydra chains. This mechanism ensures that all Hydra assets are always redeemable and leverages Protocol Locked Liquidity for internal accounting.

## Capital Efficiency

V2 introduces the “[Credit Allocation System](https://stargateprotocol.gitbook.io/stargate/v2-user-docs/whats-new-in-stargate-v2/credit-allocation-system)” which rebalances credits according to volume and user demand to adapt more swiftly to volume changes and user preferences.

Read more here:

[Stargate V2 Proposal on Commonwealth](https://commonwealth.im/stargatetoken/discussion/17059-stargate-v2-proposal)


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