29 November 2023
ConsenSys has announced a new connection with Lido and Rocket Pool, two Ethereum liquid staking providers, which would make them available to MetaMask customers. By enabling consumers to stake Ethereum using the Lido as well as Rocket Pool protocols, MetaMask Staking strengthens the decentralized nature and stability of the Ethereum platform. There would be additional information available to consumers to assist them make educated judgments regarding staking solutions, such as the reward rates, network control, and popularity of different liquid staking providers. Launched through the decentralized MetaMask portfolio app, the service is available to the public in beta form.
The firm also promised that the wallet software will allow customers to reverse the conversion of their tokens to ETH. There will be a cost involved, however. MetaMask's new functionality, which would enable customers to retrieve staked funds for the initial period following the merging, arrives many months before the Ethereum network's expected Shanghai hard split. Since this is the case, users currently cannot extract staked Ethereum or the income it generates.
Let's discuss MetaMask before moving on to Lido and Rocket Pool Liquid Staking:
What is MetaMask?
The Ethereum wallet, MetaMask, is a browser extension that can be activated in the same way similar to any other extension. When it is set up, customers will be able to keep Ether as well as other ERC-20 coins, allowing them to utilize any Ethereum handle to conduct transactions. Customers may play games, bet tokens in gambling apps, and trade cryptocurrencies on decentralized exchanges all by linking their MetaMask accounts to Ethereum-based Decentralized Applications (DApps). That's a gateway into the new world of Decentralized Finance (DeFi) with access to DeFi applications like Compound as well as PoolTogether.
More on the Combination of Lido and Rocket Pool
Customers of Lido (StETH) and Rocket Pool (rETH) may check the value of their staking tokens as well as participate in staking operations. Those coins may potentially be reconverted to ETH using MetaMask Swaps. In order to stake assets on the Ethereum blockchain and get rewards, users need to be able to freely trade as well as move their tokens around. The assets are deposited into a smart contract, and the users earn rewards according to the total amount they have staked.
The Ethereum development team, following their All Core Developers conference, has scheduled the Shanghai hardfork's open testnet for the month of February 2023. This will allow them to reach the March target for the update. As we continue to make modifications to the code which will definitely push out its release date, this is necessary to ensure that we don't encounter any snags along the way.
An overwhelming majority of employees (85%) indicated they prefer to weigh their alternatives carefully before making a major financial commitment. Seventy-four percent or more of those who participated also said they stake or are considering it. Organization officials said they will look at whether or not they could give other liquid staking suppliers. Instead of offering staking services themselves, he made it clear that MetaMask was connecting users to the Ethereum ecosystem's most prominent liquid staking providers via the use of smart contract capability.
MetaMask Partnership Improves Service
Ethereum's degree of decentralization will depend on the popularity and use of staking tools and services. Customers of the MetaMask browser extension and mobile app will soon have accessibility to this additional feature, whereby the firm claims would help them improve the safety as well as Network Decentralization by allowing them to pick which of many liquid staking providers they would stake with. Customers often struggle with staking, but MetaMask hopes its latest update will serve as a jumping off point for individuals who want to stake but are unable to establish their personal validator network.
Disclaimer: The author’s thoughts and comments are solely for educational reasons and informative purposes only. They do not represent financial, investment, or other advice.