MetaMask recently launched a new “Validator Staking” service specifically for users who own 32 or a multiple of 32 Ether. However, MetaMask charges a high fee of up to 10% on the rewards earned by validators, which could affect its competitiveness.
Since Ethereum completed the merge and transitioned to Proof of Stake (POS) in September 2022, the amount of Ether staked has exceeded 28.86 million, accounting for about 24% of the total supply. Various staking methods have emerged in the market, including individual staking (solo-staking), staking through liquidity protocols (such as Lido), or centralized exchanges (such as Coinbase).
Yesterday (18th), MetaMask, the mainstream Ethereum wallet, announced the introduction of the “Validator Staking” service in its MetaMask Portfolio. This is another initiative following the direct staking of Lido and Rocket Pool in MetaMask Portfolio in January last year.
This “Validator Staking” service is mainly targeted at users who own 32 or a multiple of 32 Ether. It is designed to assist users in securely running nodes, simplify the staking process, enhance the convenience of earning rewards, and reduce the risks of slashing and downtime, with the assistance of Consensys, the developer of MetaMask, through its Stake service.
This new service is particularly attractive to users seeking decentralization and beginners because staking through MetaMask can solve the centralization issues of large liquidity providers such as Lido. According to official data from Lido, the proportion of Ether staked through its platform has exceeded 32%.
In addition, this service eliminates the need for users to purchase and set up hardware and software to run personal Ethereum nodes, and reduces the risk of slashing caused by network interruptions.
Consensys proudly stated its past performance in providing staking services:
Although this newly launched MetaMask Validator Staking service provides a convenient and somewhat attractive option, the platform charges a fee of up to 10% on the rewards earned by validators.
Note: Coinbase’s Ethereum staking service charges up to 25% of staking rewards.
In response to this, Lefteris Karapetsas, the founder of the cryptocurrency portfolio tracker Rotkiapp, commented:
Currently, the annual yield for validator staking through MetaMask is 4%, but after considering the impact of fees, the annual yield is equivalent to the 3.4% yield provided by Lido.
You can stake through MetaMask Portfolio by following these steps:
Connect your MetaMask wallet to MetaMask Portfolio.
Click on the “Staking” tab in the left sidebar and navigate to the “Validator Staking” at the top of the page.
Select the account address.
Use the slider to enter the amount of ETH to stake (Note: Deposits can only be made in multiples of 32, which is the required amount for a validator).
Review the staking summary, rewards, and start time (Note: MetaMask charges a 10% fee from the rewards earned).
After reviewing, select “Confirm” and sign the transaction in your wallet to approve and submit the staking deposit.
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