Learn how Solana staked positions are represented on chain
When you stake Solana, you are creating a new instance of a Solana Stake Account and funding with SOL tokens. SOL in your Stake Account is then delegated to a Solana Vote Account (Validator) in order to secure the network and earn rewards.
Every epoch (approx. 2 days), rewards are paid directly to your Stake Account and your staked balance is automatically increased (the rewards are auto-compounding).
The Pier Two API manages the creation of the raw transactions required for the steps above.