No one has been able to explain to me why staking is generating a reward?

Are the staked funds used for proof of stake validation? Or lent out to. Degenerate crypto margin traders?

Where are these returns coming from? Are they being minted in shitcoins?

Ie:let me hold your eth brah and I’ll give you 2 crapcoin every month?

Id love for someone to explain the actual economics behind this as opposed to just telling me about how staking can generate 10% a year.

The reason it works in real life is the bank is lending the money back out to businesses at interest. The businesses are using it to buy tractors to farm banannas and selling the bananas at a profit to pay back the interest.

What is the equivalent of this in crypto returns for staking?