- Metamask Staking Beta Launches with Lido and Rocket Pool.
- ConsenSys has announced that crypto wallets can now be staked directly from the app.
- Staking on Ethereum needs at least 32 ETH.
ConsenSys, the Ethereum infrastructure company, has revealed that the popular crypto wallet can now be staked directly from the app. Customers can choose between Lido and Rocket Pool for staking in the network’s public beta, earning yield, and receiving liquid-staked ETH in return. Due to their fame and customers’ input, Lido and Rocketpool were chosen for the service.
“Staking” is the process by which members of a proof-of-stake crypto network lock up some of their cryptos for a set period of time in order to safeguard the network. Holders gain yield in exchange for holding the coin, letting them profit merely by keeping it.
Staking on Ethereum, on the other hand, needs a minimum of 32 ETH. At current pricing, that is a $44,800 barrier to entry for any customer who cannot spend that much on ETH.
On the other hand, staking services such as Lido and Rocket Pool pool smaller members’ ETH into a working validator that may earn ETH on behalf of all its participants. Furthermore, by offering ETH-pegged liquid staking tokens like stETH and rETH, pool participants may easily keep the liquidity of their assets while earning income.
Ethereum employed a proof-of-work consensus system until the Merge last year, when it switched to a proof-of-stake consensus process. This was widely considered to be one of the most technically difficult updates in cryptography history. Some people feel that proof of stake puts Ethereum on the path to centralization. Over 60% of all ETH is held by a few centralised providers, like Lido, Binance, Coinbase, and Kraken.
Coinbase CEO Brian Armstrong stated in August that if regulators requested him to assert authority over the network, Coinbase would shut it down.