MetaMask, a crypto wallet provider, has recently launched a new staking service allowing Ethereum users to operate their validator node.
On January 18, MetaMask introduced validator staking through MetaMask Portfolio. In this arrangement, MetaMask takes on the responsibility of running the validator node for users who deposit 32 Ether.
The new service may appeal to newcomers or those favouring decentralization, as utilizing MetaMask for staking could address concerns about centralization associated with major liquid staking providers like Lido.
This approach eliminates the need to invest in hardware for running a personal Ethereum node and reduces the risk of slashing penalties during internet outages.
Managed by Consensys, the Consensys Staking service has operated for over two years without incurring any slashing penalties, despite overseeing more than $2 billion worth of ETH across 33,000 validators.
Although staking via MetaMask offers a 3.8% annual yield, it comes with a drawback: the platform charges a 10% commission on validator rewards.
The returns from staking using MetaMask, after deducting its fees, closely mirror the 3.4% offered by Lido. Lido stands out as the leading liquid staking platform in the industry, boasting 9.3 million ETH, equivalent to $22.9 billion, currently staked.
This represents approximately 40% of the overall 28.8 million ETH staked, as reported by Ultrasound. Money. Notably, about 25% of Ethereum’s total circulating supply is tied up in staking.
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