MetaMask wallet team launches an Ethereum staking pool

What’s new? ConsenSys’ MetaMask non-custodial Web 3.0 crypto wallet team has launched staking pools for the native token of the Ethereum blockchain. With the new tool, wallet users will be able to block any amount of ETH and receive rewards for participating in the network’s operation.

Decrypt’s material

What else is known? To join the Ethereum blockchain as a validator, a user must stake at least 32 ETH, which is $115 680 at current prices. According to the MetaMask team, 99% of the wallet’s users do not meet this criterion. In addition, coins cannot be withdrawn at any time, but only after a certain period.

Staking pools allow users to deposit fewer coins by pooling them to collect the required amount and participate in the network’s operation. The new MetaMask service also allows withdrawal at any time, but the speed of this process will depend on the length of the exit queue from the blockchain validators.

For example, at the time of writing, there are two validators in the exit queue and the wait is 1 minute. The figure reached an all-time high on January 5 this year at 16 766 with an average wait time of 5 days 11 hours.

There are currently 3923 potential validators in the entry queue, with a waiting time of 2 days and 4 hours until the coins are locked.

The MetaMask staking pool is being launched in stages and is still only available to select users. It is also not yet available to US and UK users due to regulatory uncertainty.

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The platform uses the StakeWise liquid staking protocol architecture to manage certain smart contracts. The developers noted that users will be able to lock ETH into enterprise-grade validators while retaining full control over their coins.

ConsenSys claims that the new product is supported by more than 33 000 validators around the world, utilizing a variety of infrastructure, with a total blocking capacity of 1 million ETH. And none of them have been slashed (penalized) for incorrect transaction processing.

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According to The Block, about 27,1% of the ETH supply, or 33 million coins worth $119,3 billion is now staked and managed by more than 1 million validators. Most of this volume is concentrated in just a few large pools.

Leading liquid staking protocols Lido and Rocket Pool also allow a small amount of ETH to be deposited. In exchange for blocked coins, they provide users with their own tokens that can be used in other revenue-generating protocols while earning rewards for blocked coins.

The largest staking service providers are Lido and US crypto exchange Coinbase, accounting for nearly 45% of staked ETH.

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Previously, MetaMask announced its intention to introduce bitcoin support, as well as integrate with Daylight and launch an airdrop eligibility verification tool.