Cryptocurrency wallet provider MetaMask has introduced a new service for Ethereum (ETH) staking. Now, you don’t need a pool or complex equipment to run a validator node! The MetaMask team spoke about a new staking function for network users of the second cryptocurrency.
Introducing Validator Staking on MetaMask Portfolio.🦊
With a 32 ETH deposit, we run your very own validator node where you’re always in control.
No pooling. No hardware. Just rewards.✔️
🔗 https://t.co/rmCtgs86WO pic.twitter.com/R8VRttP2XX
— MetaMask 🦊🫰 (@MetaMask) January 18, 2024
Easy Ethereum Staking with Node Management Service
The feature will reportedly allow running an Ethereum validator node without a pool or the need for specialized hardware. MetaMask will do this, but for a fee – 32 ETH ($78,752 at the current rate).
“We will securely manage your node, optimizing staking rewards and reducing the risks associated with failures and downtime,” the developers wrote.
In this case, all control over accounts and funds will belong only to the client. According to ConsenSys representatives, the latter can count on an annual return of 3.8%. It is calculated from a constant base rate and additional rewards that are awarded when choosing a validator.
High Commissions
However, the user will also have to pay a 10% commission for using the function. For this reason, the service has already been criticized by members of the crypto community. Some note that the idea is quite interesting. However, such a huge commission makes it completely unattractive since there are more affordable options.
Almost the same profitability, for example, is offered by the popular liquid staking protocol Lido Finance. According to DefiLlama, the total value of the project’s locked funds currently exceeds $23 billion, most of which is ETH.
Earlier it turned out that almost 30 million ETH, or 24% of all currently circulating coins, are blocked in staking. This is an absolute record, which indicates a high level of trust in the Ethereum ecosystem.
Meanwhile, Vitalik Buterin is thinking about how to simplify the staking mechanism in the cryptocurrency network. In his opinion, the ETH blockchain is now heavily overloaded because it supports almost 895 thousand validators.
Advantages of using MetaMask
The advantage of the new MetaMask service is that you do not need to purchase any equipment to run a personal Ethereum node, and the risk of slashing due to interruptions is now gone. Operated by Consensys, this service claims to have zero slashing fines in over two years of operation and serves 33,000 ETH validators worth more than $2 billion. The move provides an alternative for users concerned about centralization problems in existing liquid staking platforms. This segment is currently dominated by Lido, which accounts for 40% of the total staked airwaves.
As Ethereum continues to evolve and grow, services like MetaMask’s validator staking will play an important role in ensuring the network remains decentralized and secure. By making it easier for users to participate in the network, MetaMask is now helping to foster greater adoption of Ethereum and its proof-of-stake.
