MetaMask Launches Ethereum Staking Feature In Cooperation With ConsenSys

MetaMask users will now have access to Ethereum liquid staking providers Lido and Rocket Pool through a new integration by ConsenSys. This integration, called MetaMask Staking, will allow users to stake Ether using the Lido and Rocket Pool protocols, which aims to enhance the security and decentralization of the Ethereum blockchain. 

Users will be able to compare various staking providers’ reward rates, network control, and popularity, to make informed decisions. The service will be available through a public beta on the MetaMask portfolio DApp, and users will be able to view and manage their Lido (stETH) and Rocket Pool (rETH) staking token balances, and also swap them back to ETH through MetaMask Swaps.

The method of liquid staking allows users to earn rewards on the Ethereum blockchain while still being able to freely transfer and trade their assets. In liquid staking, assets are deposited in a smart contract, and the rewards earned are based on the total amount staked by all users. 

You can read more about staking from MetaMask here: https://metamask.io/news/latest/what-is-staking-how-do-i-do-it/

Cointelegraph reported that Abad Mian, MetaMask’s product manager, stated that there has been an increase in user demand for staking solutions following Ethereum’s transition to proof-of-stake consensus in September 2022. According to an internal survey, 85% of respondents said they prefer to review multiple options before deciding where to stake their assets, and over 74% stated that they are currently staking or are interested in staking. 

Mian also mentioned that MetaMask will consider adding more liquid staking providers in the future, and it will not be providing staking services directly, instead it will be connecting users to major liquid staking providers through smart contract functionality.

Cointelegraph also asked about the potential for staking services to be added to MetaMask Institutional, which serves institutional clients. Mian did not provide specific comment but stated that MetaMask is constantly evaluating its offerings across all its services.

He also mentioned that the effect of staking tools on Ethereum’s decentralization would depend on their popularity, user experience, and demand for staking services. He said “Staking is just one factor that can impact decentralization in a blockchain network.”

A blockchain analysis conducted by Nansen in December 2022 revealed that there is an increasing demand for liquid Ethereum staking services after The Merge. As of January 13, the Ethereum staking contract holds over 16 million ETH, with Lido’s liquid staking pool being the largest contributor, holding over 4.6 million ETH deposited.