MetaMask, the most popular wallet for Ethereum, will provide its users with a pooled staking feature.
The mentioned solution provides consumers with the opportunity to reduce the cost of contributing to the security of the blockchain network compared to the practice of using a full-fledged validation node. The new feature also envisages participation in Ethereum staking, a popular crypto investment strategy in which tokens are parked at a specific address on the blockchain in exchange for a reward. For proof-of-stake blockchains, such as Ethereum, staking is the main way to ensure network security.
Matthieu Saint Olive, senior product manager at MetaMask developer Consensys, stated that as a result of pooled staking, users of this wallet now have access to the simple possibility of stake ETH in enterprise-grade validators, while maintaining full control over their digital currency, earning rewards and increasing the security level of Ethereum.
Standard practice stipulates that staking on Ethereum requires consumers to tie up 32 ETH with the network, which at current market prices totals some $112,000.
Pooled services such as Lido, Rocket Pool, and now MetaMask provide access to staking for more users. In this case, the assets of different people are combined. As a result of the mentioned functional feature, anyone can stake even without having 32 ETH.
MetaMask’s new feature may be unexpectedly positive news for some retail traders. In this case, it means those traders who want to stake, trade, and monitor their investments in one interface.
It is also worth noting that MetaMask is not the only crypto wallet that has implemented staking. This solution lacks some of the functionality that helped distinguish the existing pooled staking platforms.
Lido and Rocket Pool offer users receipts for their deposits, which are called liquid betting tokens (LST). The mentioned tokens can be loaned or reinvested in decentralized financial protocols.
LSTs such as Lido-staked ETH (stETH) are among the most popular assets in crypto trading. MetaMask has no plans to offer such tokens as part of its pooled staking service.
Consensys reports that the new staking feature will not be available in the United States and the United Kingdom.
As we have reported earlier, MetaMask and Xion Global Redefine Web3 Payments in South Africa.
Serhii Mikhailov
Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.
