MetaMask users are set to have access to Ethereum liquid staking providers Lido and Rocket Pool with a new integration announced by ConsenSys.
MetaMask Staking will unlock the ability for users to stake Ether (ETH) through the Lido and Rocket Pool protocols, providing services to improve the security and decentralization of the Ethereum blockchain.
Users will be able to compare reward rates, network control and popularity of different liquid staking providers, providing additional information to inform their choice of staking solutions. The service is starting with a public beta through the MetaMask wallet decentralized application (DApp).
Users will be able to stake through Lido and Rocket Pool and see their 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 transfer and trade assets freely. These assets are stored in smart contracts, earning rewards based on the total amount staked by all users.
MetaMask product manager Abad Mian told Cointelegraph that the service has increased user demand for staking solutions following Ethereum’s transition to a 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 sell an asset. In addition, more than 74% of respondents said they are staking or interested in staking.
Mian also confirmed that MetaMask will explore the potential of offering additional liquid staking providers. He also clarified that MetaMask does not provide direct staking services but connects users to Ethereum’s main liquid staking provider through smart contract functionality.
Cointelegraph also asked about the possibility of a staking service being rolled out to MetaMask Institutional, which offers a platform for institutional clients. While Mian declined to comment specifically, he noted that MetaMask continues to evaluate its offerings across multiple services.
Mian also said that the impact of staking tools on Ethereum decentralization will depend on popularity, user experience, and demand for staking services.
“Staking is just one factor that can lead to decentralization in the blockchain network.”
Blockchain analysis conducted by Nansen in December 2022 revealed that the demand for liquid Ethereum staking services increased after The Merge. As of January 13, Ethereum staking contracts contained more than 16 million ETH, with Lido’s liquid staking pool being the largest contributor with more than 4.6 million ETH deposited.