TL;DR
- MetaMask has launched the “Pooled Staking” feature, allowing users to stake any amount of ETH and earn rewards directly from the wallet.
- The initiative developed by Consensys aims to democratize access to Ethereum staking, previously limited to those with at least 32 ETH.
- MetaMask faces competition from platforms like Lido and Rocket Pool, but bets on its ease of use and broad user base.
MetaMask has announced a new “Pooled Staking” feature in its digital wallet, an innovation that allows users to stake any amount of Ether (ETH) and earn rewards directly from the application.
The initiative, developed by Consensys, aims to democratize access to ETH staking, an activity that was previously reserved for those who owned at least 32 ETH, approximately $112,000 at current market prices. Now, users can participate in network security without needing such a high investment.
MetaMask’s Pooled Staking facilitates users to stake ETH in enterprise-grade validators while maintaining full control of their assets. Matthieu Saint Olive, Senior Product Manager at Consensys, highlighted that this provides an easy way to earn rewards and contribute to the security of Ethereum. The feature will initially be launched to a select group of users, with plans for future expansion to the U.S. and U.K. markets.
MetaMask’s strategy aims to attract the majority of ETH holders, who generally own less than 32 ETH, thus expanding the accessibility of Ether staking. So far, participating in staking has been a popular strategy, with 27% of the total ETH supply locked in smart contracts, equivalent to nearly 33 million ETH. Liquid staking has also gained prominence, representing more than 34% of the total value locked in decentralized finance (DeFi).
MetaMask Brings Democratization to Ethereum
Although MetaMask enters a competitive field, facing platforms like Lido and Rocket Pool, which already offer liquid staking tokens (LST) that can be borrowed, loaned, or reinvested in DeFi protocols, the new feature will not initially include its own LST. This difference may be a disadvantage for some users seeking the additional flexibility offered by LSTs.
However, MetaMask is betting on its vast user base and the ease of use of its interface to attract those interested in a simplified staking process. The Consensys Staking infrastructure, which supports this new feature, has over 33,000 Ethereum validators in a multi-cloud, multi-region, and multi-client setup, with more than 1 million ETH staked and a validator participation rate of 99.9+%.
The introduction of Pooled Staking by MetaMask is an important step towards including more users in Ethereum staking, lowering entry barriers, and allowing a broader user base to participate.
