MetaMask users are set to have access to Ethereum liquid staking providers Lido and Rocket Pool courtesy of a new integration introduced by ConsenSys.
MetaMask Staking will unlock the ability for users to stake Ether (ETH) via the Lido and Rocket Pool protocols, promoting the service to enhance the security and decentralization of the Ethereum blockchain.
Users will be able to compare the reward rates, network control and popularity of different liquid betting providers, providing additional information to inform betting solution options. The service begins with a public beta version through the decentralized application (DApp) of the MetaMask portfolio.
Users will be able to wager via Lido and Rocket Pool and view Lido (stETH) and Rocket Pool (rETH) staking token balances. These tokens can also be exchanged back to ETH via MetaMask Swaps.
Liquid staking is a method of staking assets on the Ethereum blockchain that allows users to earn rewards while maintaining the ability to freely transfer and exchange their assets. Assets are deposited into a smart contract and earn rewards based on the total amount wagered by all users.
MetaMask product manager Abbot Mian told Cointelegraph that the service saw increased user demand for staking solutions following Ethereum’s transition to proof-of-stake consensus in September 2022.
“From an internal survey, 85% of respondents said they like to review several options before deciding where to stake their assets. Furthermore, more than 74% of those surveyed stated that they are betting or interested in betting.
Mian also confirmed that MetaMask will explore the potential of offering additional liquid staking providers. She also clarified that MetaMask was not providing staking services directly, but was instead connecting users to major Ethereum liquid staking providers through smart contract functionality.
Cointelegraph also inquired about the possibility of implementing staking services on MetaMask Institutional, the platform’s offering that caters to institutional clients. While Mian declined to comment specifically, he noted that MetaMask continues to evaluate its offerings across its range of services.
Mian also said that the impact of staking tools on Ethereum decentralization would depend on their popularity, user experience, and demand for staking services.
“Participation is only one factor that can affect decentralization in a blockchain network.”
Blockchain analysis conducted by Nansen in December 2022 revealed that demand for liquid Ethereum staking services was on the rise after The Merge. As of January 13, the Ethereum Participation Contract contains over 16 million ETH, with Lido’s liquid staking pool being the largest contributor with over 4.6 million ETH deposited.
