MetaMask users should have access to Ethereum network storage service providers Lido and Rocket Pool thanks to the new integration revealed by ConsenSys.
MetaMask Staking will unlock the ability for users to share ether via the Lido and Rocket Pool protocols, promoting the service to improve security and decentralization on the Ethereum blockchain.
Users will be able to compare bonus rates, network control and popularity of different net betting providers, providing additional information to inform betting solution choices. The service begins with a public beta through the MetaMask wallet decentralized application.
Users will be able to participate through Lido and Rocket Pool and view Lido (stETH) and Rocket Pool (rETH) balances. These tokens can also be redeemed back to ETH via MetaMask swaps.
Liquidity Staking is a method of staking assets on the Ethereum blockchain that allows users to earn rewards while retaining the ability to freely move and trade their assets. Assets are deposited into a smart contract, and rewards are earned based on the total amount wagered by all users.
MetaMask product manager Abad Mian said that the service has seen an increase in user demand for stack solutions after Ethereum transitioned to the Proof of Stake consensus in September 2022.
“In an internal survey, 85% of respondents said they would like to review multiple options before deciding where to share their assets. Furthermore, over 74% of respondents stated that they are or are interested in contributing.”
Mian also confirmed that MetaMask will explore the possibilities of introducing additional network service providers. He also explained that MetaMask was not offering staking services directly, but rather connecting users to leading network storage service providers on Ethereum via smart contract functionality.
Regarding the possibility of launching staking services on institutional MetaMask, the platform offering caters to institutional clients. While Mian declined to comment specifically, he noted that MetaMask continues to evaluate its offering across its suite of services.
Mian also said that the impact of staking tools on Ethereum’s decentralization will depend on their popularity, user experience, and demand for staking services.
“Staking is just one factor that can affect the decentralization of the blockchain network.”
Blockchain analysis conducted by Nansen in December 2022 revealed that the demand for Ethereum liquid staking services is increasing after the merger. As of January 13, the stake contract in Ethereum contains more than 16 million ETH, with Lido net stake pool being the largest contributor with over 4.6 million ETH deposited.
By Gareth Jenkinson