Staking

Staking in DeFi is similar to putting your money into a savings account or investing it in a business, but instead of earning interest, you earn some reward in the form of tokens.

Let's say Alice owns ETH on Ethereum Mainnet. She decides to stake her ETH by locking them onchain. In return for staking her tokens and helping secure the network, she receives some rewards. For staking her ETH tokens, Alice receives equivalent amount of stETH (staked ETH), which she can use in different DeFi protocols.