How does stETH work?

I'm curious about how stETH works. Could you please explain its mechanics in a straightforward manner? I've heard it's somehow related to staking Ethereum, but I'm not entirely sure how it fits into the larger cryptocurrency ecosystem. Could you elaborate on the role of stETH in facilitating staking, as well as its potential benefits and risks for investors? It would be great if you could provide some real-world examples or analogies to help me better understand its functionality. Thank you in advance for shedding some light on this topic!