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MetaMask adds “pooled staking” for cheaper Ethereum validation
MetaMask, the most popular wallet for Ethereum, will launch a “pooled staking” feature for its users starting this week, in a move that would make it cheaper to contribute to blockchain network security than running a full validator node .
The new feature will allow users to participate in Ethereum staking, a popular cryptocurrency investment strategy that involves parking tokens at an address on the blockchain in exchange for rewards. For “proof-of-work” blockchains like Ethereum, staking is the primary way the network is kept secure.
“With pooled staking, MetaMask users now have an easy way to stake ETH enterprise-wide
validators while maintaining full control of their ETH, earning rewards, and making Ethereum more secure,” Matthieu Saint Olive, senior product manager at MetaMask developer Consensys, said in a statement.
Staking on Ethereum conventionally requires users to tie up 32 ETH to the network, which at current market prices amounts to around $112,000. Pooled services like Lido, Rocket Pool, and now MetaMask give multiple users access to staking by pooling assets from various people, allowing anyone to stake even if they don’t have 32 ETH.
MetaMask’s staking functionality may come as a welcome surprise to some retail traders who want to stake, trade, and track their staking investments in one interface.
But Consensys is playing catch-up to industry peers: MetaMask is far from the first crypto wallet to introduce staking, and is missing some of the features that have helped differentiate existing pooled staking platforms.
Most prominently, 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 Stacked ETH (stETH) are among the most popular assets in cryptocurrency trading.
MetaMask does not plan to offer its LST as part of its pooled staking service.
According to Consensys, the new staking feature will not be available in the US or UK.
“The team aims to bring it to market in these regions as well,” the company said in its statement.