MetaMask, the leading Ethereum wallet, is set to launch a “pooled staking” feature this week, making it cheaper for users to contribute to the security of the blockchain network without needing to run a full validator node.
The new feature allows users to participate in Ethereum staking, a popular investment strategy where tokens are locked in a blockchain address in exchange for rewards. For blockchains like Ethereum that use proof-of-stake, staking is crucial for maintaining network security.
Matthieu Saint Olive, the senior product manager at ConsenSys, the developer of MetaMask stated that Pooled Staking offers MetaMask users a convenient method to stake ETH with enterprise-level validators. Users retain complete control over their ETH while earning rewards, thereby enhancing Ethereum’s security.
Traditionally, staking on Ethereum requires locking up 32 ETH, which currently amounts to around $112,000. However, pooled services like Lido, Rocket Pool, and now MetaMask, make staking accessible to more users by combining assets from various individuals. This means anyone can stake even if they don’t have 32 ETH.
This new staking feature is likely to be well-received by retail traders who prefer to stake, trade, and monitor their investments within a single interface.
For example, Lido and Rocket Pool provide users with “liquid staking tokens” (LSTs), which act as receipts for their deposits. These LSTs, such as Lido-staked ETH (stETH), can be borrowed, loaned, or re-invested in decentralized finance protocols and are popular in crypto trading.
MetaMask, however, does not plan to offer its own LST as part of its pooled staking service.
Additionally, the new staking feature will not initially be available in the U.S. or UK. Consensys stated that they plan to eventually introduce the service in these regions as well.
Also Read: DeFi Technologies Stakes 1,498 BTC on Core Chain Validator
