- MetaMask has launched a pooled staking service.
- The service promises to open up Ethereum staking to more users conveniently.
- Find out how to use this service.
Completed in September 2022, The Merge, which saw Ethereum swap its Proof of Work engine to Proof of Stake, remains one of the network’s most memorable and impactful upgrades. Beyond being a daring and technically impressive feat geared toward greater sustainability, the upgrade opened the door to a new passive income opportunity for users: staking.
However, the amount of ETH needed to participate in this venture had proven to be a steep cost for most retail users, leading to the proliferation of pooled services. Interestingly, this service had not been available on Ethereum’s most popular wallet, MetaMask, till now. While MetaMask is not the first to offer this service, its entry into the space promises to onboard a large number of users.
MetaMask Pooled Staking
On Wednesday, June 12, MetaMask announced the launch of its pool staking service, allowing its over 30 million monthly users to stake any amount of ETH with its enterprise-grade validators to participate in the security of the network and earn rewards.
Sponsored
Previously, users would have needed at least 32 ETH worth about $116,000 at the time of writing to stake with MetaMask’s validators, an amount that ConsenSys, the developers of the popular wallet, notes 99% of ETH holders do not have.
With the new pooled staking service, MetaMask intends to open the service to a broader audience by removing a minimum limit on what users can stake. At the same time, the platform notes that its pooled service will allow for flexible unstaking, enabling users to unstake at any point instead of having to stick to the 21-day lock-up period. This feature is, however, reliant on the validator exit queue protocol, which suggests that withdrawals may still take some time.
While similar services like Lido and Rocket Pool, which go as far as offering liquid staking tokens that can be reinvested in other DeFi activities, exist, MetaMask’s pooled staking service promises the extra convenience of allowing users the opportunity to manage their staked assets within a single interface. At the same time, MetaMask also promises users a robust infrastructure and a reliable experience.
Sponsored
"MetaMask Pooled Staking is underpinned by Consensys Staking, which boasts over 33,000 hosted Ethereum validators in a multi-cloud, multi-region and multi client infrastructure, more than 1 million ETH staked, zero slashed validators, and a 99.9+% validator participation rate," ConsenSys wrote in a statement.
In comparison, in October 2023, Lido lost $45,000 to validator slashing. Slashing is a penalty for Ethereum validators who fail to post data at the right time or post incorrect data to the network. It is a tool used to keep validators honest.
How to Use The MetaMask Pooled Staking Service
Users can use the MetaMask pooled staking service in a few simple steps.
1. Launch Your MetaMask Application: The MetMask application can be accessed via the browser extension or mobile application.
2. Tap on the Stake Prompt: Upon opening the MetaMask application, users will see a “Stake” prompt with an emoji next to the ETH ticker in the Tokens list. Clicking on this prompt brings users to the staking interface on MetaMask Portfolio, where they can choose between the MetaMask Pool, MetaMask validators, and liquid staking providers like Lido and Rocket Pool.
3. Connect Your Wallet: This step is only necessary for MetaMask Extension users. To connect your wallet, click the button at the top right-hand corner of the web page.
4. Choose the Amount of ETH You Want To Stake: Users can enter the amount of ETH they want to stake in the text field.
5. Stake Your ETH: To place the order, they must click confirm at the bottom of the page and sign the transaction.
On the Flipside
- MetaMask charges a 15% fee on your validator rewards.
- The MetaMask pooled staking service is unavailable in the U.S. and U.K. In the U.S., the platform’s staking operations have come under scrutiny from the SEC, which claims that the service may constitute an unregistered securities offering.
- MetaMask’s pooled staking service does not offer users LSTs like Lido and Rocket Pool.
Why This Matters
With over 30 million monthly users, MetaMask is the most popular Ethereum wallet. The platform’s pooled staking service promises to open up Ethereum staking more conveniently to millions of users, in a move that could bolster the security of Ethereum while allowing these users to conveniently earn rewards on their holdings.
Read this for more on MetaMask:
How New MetaMask Feature Stops Transaction Inefficiency Losses
Learn about Falkor, a promising perpetual trading protocol on Polygon:
How QuickSwap’s Falkor Revolutionizes Perps Trading on Polygon
