Staking is utilized to allow PERP token holders to earn a yield on their holdings from the fee revenue generated by traders, with a locking contract locking up a portion of the token supply and increasing demand for the token through the opportunities to earn yield, referral rewards and boost your governance voting power.
The current version of PERP staking is available on Optimism's Layer 2. PERP token holders can earn a share of the fees generated in USDC and locked PERP from token emissions every week by using the locker contract here.
A veToken model is used so that the more tokens you lock and the longer the lock duration, the greater your vePERP balance (and rewards) will be. Staking also determines your referral rewards.
As of June 20th, 2022, the first version of staking has been deprecated and the staking rewards for staked PERP (sPERP) were discontinued as part of the transition to a new tokenomic model on Optimism's L2. Lazy River 2.0 replaces the old staking model on Ethereum mainnet.
To continue earning rewards from your PERP holdings, you'll have to unstake from mainnet and bridge your tokens to Optimism. Unstake and withdraw PERP from mainnet here: https://staking.perp.exchange.