Ethereum
MetaMask adds “bulk staking” for cheaper Ethereum validation
MetaMask, the most popular wallet for Ethereum, will roll out a “pooling” feature for its users starting this week, which would make it cheaper to contribute to the security of the blockchain network compared to running a full validator node.
The new feature will allow users to participate in Ethereum staking – a popular crypto investment strategy that involves parking tokens in an address on the blockchain in exchange for rewards. For “proof of work” blockchains like Ethereum, staking is the primary way to ensure network security.
“With Pooled Staking, MetaMask users now have an easy way to stake ETH in enterprise-grade solutions.
validators while maintaining full control of their ETH, earning rewards and making Ethereum more secure,” said Matthieu Saint Olive, senior product manager at Consensys, developer of MetaMask, in a statement.
Staking on Ethereum typically requires users to stake 32 ETH to the network, which at current market prices totals around $112,000. Pooled services like Lido, Rocket Pool and now MetaMask allow more users to access staking by pooling different people’s assets, allowing anyone to stake even if they don’t have 32 ETH.
MetaMask’s staking functionality might come as a nice surprise for some retail traders who want to stake, trade, and monitor their staking investments in a single interface.
But Consensys is catching up with its industry peers: MetaMask is far from the first crypto wallet to introduce staking, and it lacks some of the features that helped differentiate legacy pooled staking platforms.
Most egregiously, Lido and Rocket Pool offer users receipts on their deposits called “liquid staking tokens” that can be borrowed, lent, or reinvested in decentralized financial protocols. LSTs like Lido staked ETH (stETH) are among the most popular assets in crypto trading.
MetaMask does not plan to offer its own LST as part of its shared staking service.
The new staking feature will not be available in the US or UK, according to Consensys.
“The team aims to market it in these regions as well,” the company said in its statement.