New MetaMask Product Will Include Liquid Staking Through Lido and Rocket Pool

Key Points:

• MetaMask, a renowned wallet provider, has just released a new product in preparation for Ethereum’s major Shanghai upgrade, which will soon permit users to withdraw ether (ETH) they have staked to help secure the network. This is part of an effort to get more users to stake in the first place.
• Staking with Lido and Rocket Pool includes depositing one’s ether into a smart contract on the blockchain, which will pay out profits.

The MetaMask Product news comes just two months before an Ethereum upgrade that will allow users to withdraw their staked ETH.

The new Metamask product launch is just in time for Ethereum‘s pivotal Shanghai update, which will soon allow users to withdraw ether (ETH) they have staked to help secure the network, popular wallet provider MetaMask is attempting to encourage more users to stake in the first place.

The firm behind MetaMask, ConsenSys, announced on Friday that it is introducing a staking function to MetaMask Portfolio, its recently unveiled one-stop shop for users to monitor their crypto holdings and send (or “bridge”) them between different blockchains. Users will be able to stake through Lido or Rocket Pool, two leading community-led validator services, with MetaMask’s new staking capability.

Staking through Lido and Rocket Pool entails depositing one’s ether into a smart contract on the blockchain, where it will earn dividends. Currently, this requires visiting the websites of Lido and Rocket Pool. “By enabling staking via the Portfolio dapp, we are giving MetaMask users a straightforward way to communicate with staking providers,” said Abad Mian, MetaMask’s product manager.

Users will be unable to withdraw stalled ether – and any rewards it accrues – until Ethereum’s Shanghai update in March. Liquid staking platforms like Lido and Rocket Pool go around this limitation by providing depositors with tokens that represent a one-to-one claim on their staked ETH. These tokens, Lido’s stETH and RocketPool’s rETH, typically trade on the open market at a tiny discount to standard ETH, allowing stakers to enter and exit staking positions even when withdrawals are currently restricted.

“Customers can trade their stETH and rETH back to ETH via MetaMask Swaps, subject to certain costs,” said ConsenSys in a statement. When questioned if the wallet provider would expand staking to other staking services or blockchains besides Ethereum, Mian stated that ConsenSys sought to make MetaMask staking the “easiest and most comfortable way to stake across Web3.”

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