MetaMask Launches Pooled Staking 

MetaMask, a widely-used cryptocurrency wallet and gateway to decentralized applications, has introduced an innovative feature: Pooled Staking. This new feature aims to simplify the staking process, making it more accessible to a broader range of users. Whether you are new to staking or a seasoned expert, MetaMask Pooled Staking is set to transform the staking landscape by offering a user-friendly and efficient way to participate in staking.

The Old Way: High Barriers to Entry

Traditionally, staking on Ethereum required a minimum deposit of 32 ETH (approximately $112,000 at current prices). This substantial amount, coupled with the need to manage the technical aspects of running a validator node, made staking accessible primarily to larger players, excluding many potential participants. However, various protocols have emerged to remove this entry barrier and few key players dominating this market are as follows:

1. Lido: It is a popular staking protocol that allows users to stake their ETH and receive stETH (staked ETH) in return. Lido pools ETH from many users to run validator nodes and distributes the rewards. It currently has over ~ $6.9 billion worth of ETH staked.

                                                                Source: @hildobby – Dune Analytics

2. Rocket Pool: Another well-known staking protocol that offers similar services to Lido, providing rETH (Rocket Pool staked ETH) as a liquid staking token. Rocket Pool has around ~ $800 million staked.
3. Centralized Exchanges: Many users opted to stake their ETH through exchanges like Coinbase and Binance. These platforms also pool user funds to run validators and distribute rewards.

MetaMask Pooled Staking: A Game Changer

MetaMask Pooled Staking aims to change the game by offering a more accessible and user-friendly staking option.

Key Features:

1. No Minimum Requirement: Users can stake any amount of ETH, no matter how small.
2. Decentralization and Security: Unlike some centralized exchanges, MetaMask Pooled Staking is built on decentralized principles. It uses the infrastructure of Consensys Staking, ensuring high security and reliability with zero slashing incidents since 2020.
3. Flexibility: Users can unstake your ETH at any time, thanks to the network of independent oracles ensuring you can always access your funds.
4. Ease of Use: MetaMask handles all the technical aspects of staking, making it simple even for beginners.

How Pooled Staking Works:

In pooled staking, multiple users combine their ETH to reach the 32 ETH minimum required for a validator. This pooled ETH is then used to run a validator node. The rewards earned by the validator are distributed among the participants based on their contribution. 

How to Stake with MetaMask Pooled Staking

1. Connect your wallet to MetaMask Portfolio.
2. Navigate to the “Stake” tab and choose “MetaMask Pool.” Enter the amount of ETH you want to stake.
3. Check the expected rewards, confirm your stake, and sign the transaction in your wallet.
4. Your ETH is now staked, and you can monitor your balance and rewards through MetaMask Portfolio.

Staking Options in MetaMask Portfolio

MetaMask Portfolio now provides three distinct options for staking your ETH:

1. MetaMask Pool: Stake any amount of ETH in the MetaMask-powered staking pool and earn daily rewards.
2. MetaMask Validators: Stake 32 ETH or more in dedicated validators operated by MetaMask and earn daily rewards.
3. Liquid Staking: Stake any amount of ETH with third-party providers such as Lido and Rocket Pool, and receive a token representing your staked ETH.

Closing Thoughts

MetaMask’s Pooled Staking feature is set to challenge the likes of Lido, Rocketpool and more. With its focus on flexibility, security, and user-friendliness, MetaMask is poised to reshape the staking landscape, encouraging greater decentralization and participation in the Ethereum network. Being a popular name in the industry with millions of monthly active users, this integration will surely help to increase adoption of staking.