The popular self-custody crypto wallet has launched MetaMask Staking, a feature that allows users to stake their ETH on liquid staking services Lido and Rocket Pool. Users can also swap their stake reward tokens for ETH via MetaMask Swap.
On Friday, ConsenSys, the company behind Ethereum-based non-custodial crypto wallet MetaMask, announced that it is adding a feature that will allow customers to earn rewards by staking Ether (ETH) through Lido and Rocket Pool – two popular liquid staking services on Ethereum.
Earlier, users that wish to become validators for the Ethereum network would have to do so by locking up their ETH tokens directly on liquid staking protocols by visiting their websites. Now they can access the service via their MetaMask wallets and accrue rewards in staked Ether.
Normally, proof-of-stake (PoS) blockchains require validators to lock up their tokens on the network for a specified period of time. They will not be able to retrieve their funds or the rewards until the term limit. With liquid staking, users can delegate their ETH on the Ethereum blockchain while maintaining the ability to freely transfer or trade their assets.
Although staked ether will remain locked on Ethereum until the Shanghai upgrade is completed in March, liquid staking solutions like Lido and Rocket Pool go around this limitation by issuing depositors a token that is valued 1:1 with their original asset. Holders can withdraw their stETH (Lido) and rETH (Rocket Pool) tokens and trade them on the open market at a slight discount to normal ETH without having to worry about losing their staking positions.
ConsenSys says that after the ‘Merge’ – Ethereum’s transition from proof-of-work (PoW) to proof-of-stake blockchain – in September 2022, there has been a growing demand from customers to bring staking solutions on the platform that would allow them become validators to secure the Ethereum blockchain. With MetaMask Staking, ETH holders can now directly delegate their tokens on the Lido and Rocket Pool smart contracts. However, they must be wary that MetaMask does not provide staking services of its own.
To access the service:
- Visit portfolio.metamask.io and connect your MetaMask wallet
- Select ‘Stake’ from the menu tab, choose your preferred stalking provider and then click ‘Stake’
- Enter the amount you wish to stake and click ‘Review’
- Review your stake and then click ‘Confirm’
- Sign the transaction in your wallet
- Once the transaction is complete, click ‘View Holdings’ to view your staking portfolio
MetaMask Staking allows customers to swap their stETH and rETH tokens back to ETH or any other ERC-20 token through MetaMask Swaps, which is subject to certain platform and network fees. ConsenSys is exploring ways to expand the feature to MetaMask Institutional – the company’s wallet offering for institutional clients – and other staking services and blockchains in the future.
According to Ethereum.org, as of January 14, various staking contracts on the Ethereum network contain over 15.9 million ETH worth $24.7 billion. Lido’s liquid staking pool holds the largest share with 6.29 million ETH ($9.74 billion), and Rocket Pool holds over 350,000 ETH ($542 million) in its stake pool.
At the time of writing, ETH is trading at $1,548 – up by 10% in the last 24-hours.