Coinbase Cloud and Kiln Partner to Make Ethereum Staking More Accessible
Coinbase Cloud, the cloud division of crypto exchange Coinbase, has teamed up with decentralized infrastructure provider Kiln to make native Ethereum staking more accessible to its users. Currently, to become a validator and start earning from staking, one needs to have a minimum balance of 32 ETH. This high entry barrier prevents many Coinbase users from participating in staking. However, the partnership with Kiln allows users to stake smaller amounts directly from their wallets. Kiln’s on-chain staking solution utilizes smart contracts to pool deposits from multiple users to collectively reach the required 32 ETH. This collaboration aims to democratize Ethereum staking by reducing the barriers to entry and enabling a wider range of users to participate.
Lido Finance Continues to Dominate Liquid Staking Protocols
While Coinbase and Kiln work to make Ethereum staking more accessible, liquid staking protocols like Lido Finance remain popular options for earning yield from ETH. Lido Finance currently holds a significant market share in the liquid staking space, with a Total Value Locked (TVL) of $13.94 billion. However, concerns have been raised about the centralization of staking within a single entity. To address this, some providers have proposed a rule that limits any entity’s market share to 22%. Even Ethereum co-founder Vitalik Buterin has expressed the need to improve staking decentralization. Despite these challenges, Lido Finance continues to dominate the liquid staking market and attract more deposits from Ethereum holders.
Hot Take: Making Ethereum Staking More Inclusive
The partnership between Coinbase Cloud and Kiln is a significant step towards making Ethereum staking more inclusive. By reducing the minimum balance requirement and allowing users to stake smaller amounts, more people can participate in staking and earn rewards from their ETH holdings. This move aligns with the goal of democratizing access to cryptocurrencies and promoting greater decentralization within the Ethereum ecosystem. While Lido Finance remains a dominant player in the liquid staking market, efforts to limit market concentration and improve decentralization are necessary to ensure a more equitable and secure staking environment. As Ethereum continues to evolve, it is crucial to create opportunities for broader participation and empower individuals to actively engage in the network’s governance and growth.
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