Cryptocurrency wallet MetaMask implements Ethereum staking function

MetaMask supports ETH staking

MetaMask, a self-managed wallet for crypto assets (virtual currency), released a staking function for Ethereum (ETH) on the 13th. Support liquid staking on Lido and Rocket Pool.

Liquid staking is a DeFi (decentralized finance) mechanism that allows you to operate alternative assets (staking proof tokens) while receiving cryptocurrency staking interest. If you stake Ethereum (ETH) with Lido and Rocket Pool, you will receive “stETH, rETH”, which can be used as collateral for lending or operated on DEX (distributed exchange).

If you set up your own node and stake Ethereum, a minimum stake of 32 ETH is required, and there is a restriction that the staked ETH cannot be withdrawn until the update “shanghai” scheduled to be implemented in March 23.

Liquid staking, which can bypass these restrictions, is gaining support from investors, accounting for 42.54% of the total staking volume on Ethereum (consensus layer) (DUNE survey). Among them, Lido is the top market share (65.8%) and Rocket Pool is the third (3.1%) decentralized liquid staking provider.

Relation:Ethereum Staking Withdrawal Feature Launches New Development Testnet

How to use MetaMask staking

WEN STAKING?

We are extremely happy to announce that you can now stake ETH with Lido or Rocket Pool through the Portfolio Dapp

https://t.co/HVLvcSDbw6 pic.twitter.com/9VkiU5jlsw

— MetaMask (@MetaMask) January 13, 2023

MetaMask’s staking feature is available through the MetaMask Portfolio dapp (Beta), accessible via browser extension and mobile app. It is also possible to instantly exchange alternative assets for ETH through the exchange function (MetaMask Swaps). MetaMask product manager Abad Mian said:

LIDO also supports staking such as Solana (SOL), Polygon (MATIC) and Polykadot (DOT), but it is not clear if MetaMask will support other liquid staking. Mian explains that he wants MetaMask staking to be “the easiest and most convenient way to stake across Web3.”

Relation:Cryptocurrency wallet Metamask releases new feature “Portfolio Dapp (Beta version)”

Ethereum staking demand

ConsenSys, an Ethereum-related technology development company that participates in the development company of “Metamask”, has more than quintupled the number of wallets that stake over $1 million in ETH over the past year. Emphasize the increase. By providing a more convenient means for interested users, he hopes to expand the scale of ETH staking.

Since the beacon chain (consensus layer) went live in November 2020, the Ethereum deposited into the staking contract has been steadily accumulating. According to data site OKLink, at the time of writing, 15.9 million ETH worth about 3.17 trillion yen has been locked up, which is equivalent to 13.2% of the ETH supply.

Through staking, users participate in the Ethereum network’s PoS (Proof of Stake) consensus formation and receive rewards of 4% to 6% annual interest in return for contributing to maintaining the security of the network (cannot be withdrawn yet). .

According to analytics firm Messari, Ethereum has the lowest staking rate among the major Layer 1 blockchains. With 90% for the BNB chain and around 70% for Solana (SOL) and Cardano/ADA (ADA), there is room for growth in Ethereum staking demand.

At the most recent Ethereum developer conference, the implementation target for the upgrade “Shanghai” centered on the staking ETH withdrawal function was set around March 2023. Some people are concerned that the implementation of the withdrawal function will lead to selling pressure on Ethereum, but there is also a view that it can attract new staking participants.

According to the data site BeaconScan, the number of validators on Ethereum’s staking network (consensus layer) has exceeded 500,000. This is a 16% increase from 428,000 when the large-scale upgrade “The Merge” that moved to PoS was completed (September 15, 2010).

Relation:Ethereum large-scale upgrade “Merge” implementation completed

The post Cryptocurrency wallet MetaMask implements Ethereum staking function appeared first on Our Bitcoin News.