MetaMask connects Lido and Rocket Pool to its staking service

Key points:

• MetaMask Staking will enable users to stake Ether through the Lido and Rocket Pool protocols, this will purportedly increase the security and decentralization of the Ethereum network.
• Users will be able to compare the rates of reward, network control, and popularity of different liquid staking providers, this additional information will aid in the choice of a staking solution.
• Clients will have the ability to stake through Lido and Rocket Pool and will be able to view the staking token balances of both Lido and Rocket Pool. These coins can also be exchanged back to ETH through MetaMask swaps.
• Additionally, MetaMask will explore the possibility of adding additional liquid staking providers.
• Blockchain analysis conducted by Nansen in December of 2022 revealed that demand for liquid Ethereum staking services was increasing following the Merge. 

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Ethereum users who utilize MetaMask will have access to Ethereum liquid staking providers Lido and Rocket Pool due to a new partnership announced by ConsenSys. 

MetaMask Staking will enable users to stake Ether through the Lido and Rocket Pool protocols, this will purportedly increase the security and decentralization of the Ethereum network.

Users will be able to compare the rates of reward, network control, and popularity of different liquid staking providers, this additional information will aid in the choice of a staking solution. A public beta precedes the service's launch through the MetaMask application for decentralized investing.

Users will have the ability to stake through Lido and Rocket Pool and will be able to view the staking token balances of both Lido and Rocket Pool. These coins can also be exchanged back to ETH through MetaMask swaps.

Staking is a method of earning rewards on the Ethereum blockchain that allows users to maintain the ability to transfer and trade their assets. The assets are stored in a smart contract that rewards users based on the total amount staked by everyone.

Abad Mian, the product manager of MetaMask, said that the service experienced a surge in demand for staking solutions following Ethereum's transition to a proof-of-stake consensus in September of 2022.

“From an internal survey, 85% of respondents said they like to review several options before deciding where to stake their assets. In addition, over 74% of respondents stated that they are staking or interested in staking.”

Additionally, MetaMask will explore the possibility of adding additional liquid staking providers. He also clarified that MetaMask was not providing staking services directly, but instead, it connected users to Ethereum's major staking providers through smart contract functionality.

Btcman.io also asked about the possibility of staking services being made available to MetaMask Institutional, the platform's offering for institutional clients. Mian declined to discuss the specifics, but he stated that MetaMask continues to evaluate its offerings across all of its services.

Mian also stated that the effect of staking tools on Ethereum's decentralization would be dependent on their popularity, user experience, and demand for staking services.

“Staking is just one factor that can impact decentralization in a blockchain network.”

Blockchain analysis conducted by Nansen in December of 2022 revealed that demand for liquid Ethereum staking services was increasing following the Merge. As of January 13th, the Ethereum contract that hosts staking contains over 16 million ETH, the largest contributor to the contract is Lido's liquid staking pool, which has 4.6 million ETH deposited.