Users of MetaMask will soon have access to Lido and Rocket Pool, two Ethereum liquid staking providers, according to a new integration announced by ConsenSys.
By using MetaMask Staking, users will be able to stake ETH. Tickers $1,534 lower, promising the service to enhance the security and decentralization of the Ethereum blockchain through the Lido and Rocket Pool protocols.
Users will have the ability to compare reward rates, network control, and popularity of various liquid staking services, offering more data to help users make informed decisions about staking solutions. The service launches with a public beta via the decentralized MetaMask portfolio application.
Users will be able to monitor the balances of the staking tokens for Lido (teeth) and Rocket Pool (rETH) as well as stake using those services. Through MetaMask Swaps, these tokens can also be swapped back into ETH.
With liquid staking, users may stake assets on the Ethereum blockchain and collect rewards while still having complete control over how they transfer and trade their assets. A smart contract receives the assets as a deposit and awards incentives based on the aggregate amount staked by all users.
Abad Mian, the product manager at MetaMask, told Cointelegraph that since Ethereum switched to a proof-of-stake consensus in September 2022, there was a greater demand from users for staking solutions.
“In an internal survey, 85% of respondents said they prefer to think over various options before devoting their resources. Furthermore, more than 74% of those surveyed claimed they were already staking or were considering it.
Mian also stated that MetaMask would investigate the possibility of supplying more liquid staking providers. He also clarified that MetaMask was using smart contract functionality to link customers to Ethereum’s main liquid staking providers rather than directly providing staking services.
Cointelegraph also asked if the platform’s solution for institutional clients, MetaMask Institutional, may have staking services in the future. While Mian declined to make any specific comments, he did mention that MetaMask continues to assess its service offerings as a whole.
According to Mian, the effectiveness of staking tools and the demand for staking services will determine how decentralized Ethereum becomes.
Staking is one aspect that could affect a blockchain network’s decentralization.
According to Nansen’s blockchain data from December 2022, the Merge has increased demand for liquid Ethereum staking services. As of January 13, there are approximately 16 million ETH in the Ethereum staking contract, with Lido’s liquid staking pool making the largest deposit with over 4.6 million ETH.