The Ultimate Guide to Staking Crypto with MetaMask

Welcome to Web3, where Decentralized Finance(Defi) and MetaMask are essential components. Moreover, MetaMask is a popular crypto wallet used by millions of people on a daily basis all over the globe. Mainly, it enables users to interact with decentralized applications (dApps) seamlessly. One such feature is staking, which allows users to earn rewards by holding their digital assets in a wallet for a certain period.

Particularly, staking is a process where users hold their cryptocurrency in a wallet for a specific period. In return, they receive rewards for their contribution to the network. This incentivizes users to hold their digital assets for a more extended period, which helps to increase the stability of the network. In recent years, staking has become increasingly popular among cryptocurrency enthusiasts. As a result, MetaMask has made it even easier for users to participate in the process.

In this article, I will explore the top eight coins that can be staked by using MetaMask. I will dive into the benefits of liquid staking, explore the difference between crypto staking vs liquid staking, and how to use MetaMask to earn rewards. So, whether you are new to staking or an experienced trader, this article will provide you with everything you need to know to get started earning a passive income with crypto.

What is Crypto Staking with MetaMask?

As mentioned in the introduction, it’s now possible to start staking from within your Metamask wallet. This process is called liquid staking crypto and is relatively new within Web3 and decentralized finance(Defi).

However, it’s important to know that these staking services are not provided by MetaMask itself. Additionally, MetaMask provides the interface to connect to certain dApps or liquid staking platforms that offer these staking services.

MetaMask Staking: Best Platforms for Liquid Staking Coins

Below is a list of the most reliable platforms for liquid staking coins. In short, you just need to connect your Metamask to one of these platforms and you can start staking from here. The platforms for liquid staking coins:

• Lido – Liquid staking solution originally built for ETH 2.0
• Rocket Pool – Decentralized Ethereum staking protocol
• Ankr – Rising Web3 & staking platform
• BenQI – Liquid staking and Defi
• StaderLabs – Multichain liquid staking platform

Later on in this guide, a more detailed look at every liquid staking platform and a deeper explanation of how to start staking coins by using Metamask.

Coins That Can be Staked by using MetaMask

First of all, liquid staking coins are a form of decentralized finance(DeFi). Meaning, liquid staking is an activity that can be done from within a crypto wallet where no third party is involved. You simply connect, lock-up coins in a smart contract, and start staking.

Below is a table or matrix that showcases all coins that can be staked by using the popular MetaMask crypto wallet. Particularly, the table below shows up to three alternatives for liquid staking crypto coins.

For instance, if you want to start staking ETH by using Metamask you have three alternatives:

• Liquid staking ETH at Lido at 4.5% APY
• Staking ETH at Rocket Pool at 4.32% APY
• Liquid staking ETH at Ankr at 3.99% APY

Finally, every link below is a direct link to the proper smart contract on-chain, where you only need to connect your MetaMask to start staking.

8 Coins and Liquid Staking Platforms

✔️Coin	📊PlatformA(incl. APY)	📊PlatformB(incl. APY)	📊PlatformC(incl. APY)	❓Type
ETH	Lido(4.5%)	Rocket Pool(4.32%)	Ankr(3.99%)	Liquid
MATIC	Lido(6.3%)	Ankr(3.83%)	StaderLabs(5.76%)	Liquid
BNB	BNB Chain(2-3%)	Ankr(3.51%)	StaderLabs(4.69%)	Liquid
SOL	Lido(5.9%)	Marinade.Finance(6.21%)		Liquid
AVAX	BenQI(7.2%)	Ankr(7.06%)		Liquid
FTM	StaderLabs(4.7%)	Ankr(2.7%)		Liquid
DOT	Lido(16.8%)	Ankr(14.23%)		Liquid
ANKR		Ankr(8.95%)		Delegated
GNO		Ankr(13.61%)		Delegated

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What is Liquid Crypto Staking?

Liquid crypto staking is a process that allows cryptocurrency holders to earn rewards by staking their tokens in a staking pool, which is facilitated through smart contracts on a blockchain network.

To enable liquid staking, tokens are pegged to a derivative asset or a synthetic token that represents the staked tokens and can be traded freely. This allows users to continue using their tokens while earning staking rewards.

Tokens can be pegged using various methods, such as over-collateralization, where a certain amount of collateral is required to issue the synthetic token, or algorithmic stabilization, where supply and demand are balanced to maintain the peg.

Liquid Staking vs Staking

The main difference between liquid crypto staking and regular crypto staking is that in liquid staking, the staked tokens are still liquid and can be freely traded or used, while in regular staking, the tokens are locked up and cannot be used until the staking period ends.

Overall, liquid crypto staking offers more flexibility and liquidity compared to regular staking, as users can earn rewards without sacrificing their ability to use their tokens. However, there are also additional risks and complexities associated with pegging and trading synthetic tokens.

Liquid Crypto Staking: An example

For instance, ETH is one of the coins that can be staked by using Metamask. How does liquid staking ETH work?

Suppose you have 2 ETH available and want to use them to start staking at Lido. The first thing to do would be to deposit these 2 ETH in the Lido pool.

What happens next? For depositing 2 ETH at Lido, you get 2 stETH in return that is pegged 1:1 to ETH. In other words, depositing 2 ETH gives you 2 assets back valued at the same price.

Finally, it is good to know that these stETH synthetic assets only can be traded on Defi/Web3 platforms like Uniswap, Lido, and other protocols that support these tokens.

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What are the main Advantages of Liquid Staking?

1. Liquidity

The main advantage of liquid crypto staking is that you keep flexible and liquid when holding assets. Regular crypto staking forces you to lock up your tokens where you don’t have control over your assets. Liquid staking solves this problem by remaining ‘liquid‘.

2. Elastic supply

Elastic Supply Tokens work in such a way that the circulating supply expands or contracts to offset changes in a token’s price via rebasing. When you stake AVAX and receive Liquid Staking tokens ankrAVAX, the circulating supply of ankrAVAX increases. When you want to ‘unstake’ your AVAX, you must return your ankrAVAX to Ankr Staking. Your ankrAVAX is burnt and AVAX is returned to you. The circulating supply of ankrAVAX decreases.

How To Stake Coins with MetaMask(5 Steps)

In the matrix above, I have shown you 8 coins that can be staked by using MetaMask. Particularly, to describe the process for liquid staking more, I’m going to use Ethereum as an example for staking ETH on Lido.

Besides, to follow these steps it’s necessary that you have installed and created a wallet on MetaMask first.

Staking Ethereum(ETH) with Lido

1. Visit portfolio.metamask.io
2. Toggle to the staking tab to choose your desired staking provider and click “Stake“
3. Enter the amount for staking and click “Review“
4. Review and click “Confirm“
5. Sign the transaction with MetaMask wallet
6. You’re done!

The Best Liquid Staking Platforms

Earlier in this guide, I listed some popular liquid staking platforms you can use with your MetaMask wallet. Below is a more detailed view of each one of them.

Lido

Lido is the leading liquid staking platform that enables users to earn interest on their cryptocurrencies across multiple blockchains. When Lido users stake their assets on the platform, they receive a liquid token, like stETH, that can be used across decentralized finance (DeFi) applications and even staked for additional yield. Lido is focused on Ethereum but also supports Solana, Kusama, Polkadot, Polygon, and Terra.

Rocket Pool

Rocket Pool is a liquid Ethereum staking protocol. This liquid staking platform enables users to participate in staking on Ethereum’s consensus layer or ETH2 — users can earn up to 4.5% annually as staking rewards in the form of rETH tokens, which can be swapped at any time.

Rocket Pool also enables users to stake ETH and operate nodes to validate transactions on the network. In exchange, users earn up to 6.77% annual staking rewards in ETH in addition to RPL rewards(the local token of the platform).

Ankr

Ankr offers the liquid, secure, and easy-to-integrate staking infrastructure to enterprise customers through a network of Enterprise Staking Partners. Besides staking on Ethereum, this protocol also allows you to liquid stake on other chains like Solana, Polygon, and Binance Chain.

Finally, they offer the Ankr Bridge, which enables you to bridge liquid staking tokens to different blockchains. All this for maximum earning opportunities, and a cross-chain staking experience.

BenQI

BenQI Liquid Staking (BLS) is a staking protocol that operates on the Avalanche blockchain. By using BLS, users can tokenize their staked AVAX and utilize it within various decentralized finance (DeFi) applications such as Automated Market Makers (AMMs), Lending & Borrowing Protocols, and Yield Aggregators.

With BLS, users can stake their AVAX on the Avalanche C-Chain, without having to stake on the Avalanche P-Chain. This means that users can earn validation rewards from the P-Chain without the need to run a full node or lock up their AVAX on a validating node. As a result, users have the flexibility to freely use their staked AVAX while still earning rewards from staking on the Avalanche P-Chain.

StaderLabs

StaderLabs is a multichain liquid staking platform that allows users to stake their tokens and receive rewards while maintaining liquidity. It supports multiple blockchains, including Ethereum, Binance Smart Chain, and Polygon, among others.

Users can stake their tokens on StaderLabs and receive a liquid version of their staked assets, which can be freely used in other DeFi protocols and applications. This enables users to earn rewards from staking without having to lock up their assets, providing greater flexibility and accessibility to their funds.

StaderLabs aims to increase participation in staking and reduce the barriers to entry for users looking to earn rewards from their crypto assets.

Recommended: How to make money with MetaMask

Conclusion: Crypto Staking with MetaMask

The question of whether to use MetaMask and liquid staking protocols ultimately depends on individual circumstances. While liquid staking provides many benefits, it is important to recognize that by using a third-party platform, you are adding another layer between you and the native staking smart contract of the asset.

For example, if you use Lido to stake your ETH, you are staking through their smart contract and exchanging your ETH for their coin, stETH. Although Lido is a highly audited and reliable service, there is still a greater risk than staking natively directly on the Ethereum network without any intermediaries in between.

However, as these services continue to mature and undergo rigorous testing, this risk is likely to decrease significantly. Overall, the decision to use a liquid staking platform in combination with MetaMask depends on your level of using Web3 wallets and your investment goals.

Related: How To Buy Crypto Without Trusting An Exchange

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