Ethereum Users Stake Full Validator Directly From MetaMask

MetaMask’s new offering eradicates the need for intricate hardware or pooling to operate an Ethereum validator node. 

MetaMask, a crypto wallet provider, has introduced a new staking service to enable Ethereum users to operate their validator nodes at a cost. On January 18, it unveiled validator staking via MetaMask Portfolio, which will take a 10% share.

MetaMask Eyes Operating Validator Node 

The crypto wallet provider is to operate the validator node on behalf of stakers who deposit 32 Ether. This is approximately $78,752, which is not a small amount.

MetaMask noted that pooling or hardware is unnecessary. It claimed that it runs each speaker’s node safely, restructuring their staking rewards while alleviating downtime and slashing risks.

Further, this new service might be appealing to beginners or decentralists. This is because staking through MetaMask could address centralization problems from major liquid staking providers, for instance, Lido.

The service also disproves the need to buy hardware to operate private Ethereum nodes, eradicating the odds of being slashed because of internet interruptions. In more than two years of operation, Consensys, the service ‘has never gotten slashing penalties despite managing Ethereum worth more than $2B across more than 33000 validators.

Metamask Matches Lido in Net Staking Rewards

Staking through MetaMask presently yields 3.8% annually. Nevertheless, the platform takes a 10% cut for all validator rewards. According to Lefteris Karapetsas, the founder of Rotkiapp crypto portfolio tracker, this new service is an ‘intriguing idea.

However, a 10% cut makes it completely unattractive for users who compare it with other alternatives.’ The yields linked to staking with MetaMask minus its fee are the same as what Lido provides at 3.4%.

Lido is the most dominant liquid staking platform in the industry. It has 9.3M Ethereum worth $22.9B. Data from Ultrasound. Money shows that this is almost 40% of the 28.8 million Ethereum staked overall.

Ethereum’s overall circulating supply that locked staking is nearly 25%. Apart from providers of decentralized staking, Ethereum holders can utilize centralized exchanges like Coinbase. Currently, it takes a quarter of staking rewards. 

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