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In a defensive war, you can either let them build up their fleets and keep bashing their fleets against your star bases or you can go on the offensive. If you kill their ships, their people become demoralized and their war exhaustion increases, though for every ship they kill or every system or yours they take, your war exhaustion increases. War exhaustion also increases simply over time, because people get tired of the shortages and all that goes with war. Here's the wiki link.
https://stellaris.paradoxwikis.com/Warfare#War_exhaustion
Your choices are to wait it out and keep checking to see if they want to declare peace or go on the offensive and raise their war exhaustion through conquest. Best of luck!
The reason why your opponent is gaining attrition slower than you is because they have techs or other buffs that lower the rate of war exhaustion gain, which applies to everything, including attrition.
But it doesn’t mean they’re winning the war, it just means that your empire is closer to wanting to give up and stop fighting.
If they're not occupying any of your territory, they'll not get anything out of ending the war this way.