Mine is called a "Daisy Staysail" and connects to that padeye. It has a built in stay and only one sheet. It is supposed to be used when flying the symmetrical spinnaker to improve the slot effect on the main. I haven't drug mine out of its bag since I bought the boat because just the spinnaker is enough for me and the Admiral. I suppose you could also use it on a reach with the genny but I think the sheeting angle and track layout on the 37 footer is too far outside for that to work well.
I would look under the deck, and see how substantial that it's attached. For a stay, it should be firmly anchored. And it may be associated with a tang on the mast, along with opposing stays aft. I think.
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