It was already possible to stake ERC20 tokens on Ethereum, through a number of different staking protocols and platforms. Staking allows token holders to participate in the validation and processing of transactions on the network, in exchange for rewards in the form of additional tokens.
One popular platform for staking ERC20 tokens on Ethereum is the decentralized finance (DeFi) platform Aave. Aave allows users to stake a variety of different tokens, including popular ERC20 tokens such as DAI, USDC, and USDT, and earn interest on their holdings.
In addition to Aave, there are a number of other platforms and protocols that allow for staking of ERC20 tokens on Ethereum, including Compound, Curve, and Yearn Finance, among others. Some of these platforms also offer additional features, such as liquidity pools and automated market makers, which allow for more sophisticated trading strategies.
Overall, the ability to stake ERC20 tokens on Ethereum has been a significant development in the blockchain and cryptocurrency space, as it provides a way for token holders to earn passive income and participate in the network's operations.