MetaMask’s Ethereum Staking Beta launches with Lido and Rocket Pool

ConsenSys — the Ethereum infrastructure provider behind Metamask — has announced that its widely used crypto wallet now allows users to share ETH directly from the app.

The public beta of the network allows users to choose either Lido or Rocket Pool to store, through which they can earn returns and receive liquid stacked ETH in return.

ETH betting on MetaMask

According to The Block account of ConsenSys’ announcement, users can confirm the amount of ETH they wish to allocate to staking with a signed transaction on MetaMask, and receive floating staking tokens directly from the staking provider.

Lido and Rocketpool were chosen for the service due to their popularity and user feedback.

“It is important to note that MetaMask Staking does not provide staking services,” MetaMask senior product manager Abad Mian told TheBlock. “We simply connect users to the Lido and Rocket Pool to share ETH and get floating equity tokens directly from the stake provider.”

The term “stake” refers to when users of a proof-of-stake crypto network lock up some of their cryptocurrency for a period of time to secure the blockchain. Speculators earn returns in return, allowing them to make money simply by holding the coin.

But betting on Ethereum requires at least 32 ETH. At current prices, this represents a $44,800 entry barrier against any user who cannot invest that much in ETH.

In contrast, staking services like Lido and Rocket Pool pool ETH for smaller users into a functional validator that can earn ETH on behalf of all of their contributors. In addition, by providing floating staking tokens pegged to ETH such as stETH and rETH, pool users can effectively maintain the liquidity of their assets while still earning returns.

MetaMask users can also exchange rETH and stETH back for ETH in the app for a fee.

merge

Ethereum even used a proof-of-work consensus mechanism Merge Last year, the network’s consensus mechanism was changed to proof of stake. This was widely considered one of the most technically challenging upgrades in crypto history.

The upgrade has been criticized by some who believe that proof of stake puts Ethereum on a path towards centralization. More than 60% of ETH is controlled by a group of centralized providers including Lido, Binance, Coinbase, and Kraken.

Coinbase CEO Brian Armstrong claimed In August, he said he believed Coinbase would shut down its Ethereum staking service if regulators were required to exercise control over the network.

MetaMask’s Ethereum Staking Beta with Lido and Rocket Pool goes live for the first time on CryptoPotato.

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