Staking involves locking up cryptocurrency in a DeFi protocol to support the network’s operations, like transaction validation or securing the blockchain. In Proof of Stake (PoS) systems, users who stake their tokens are chosen to validate transactions, and in return, they earn rewards, usually in the form of additional tokens. Staking contributes to network security by ensuring that validators have a financial stake in acting honestly. However, it also carries risks like slashing, where a portion of staked tokens can be forfeited if a validator behaves maliciously or fails to perform their duties.