This is a typical balance mini-game. The game's concept is likely inspired by the real-life act of balancing a stick on your finger, which also appears to be a performance in acrobatics. All you have to do is make sure the puppy doesn't fall off the stick while avoiding obstacles.
Gameplay: Use mouse movements to control the balance of the puppy on the rod to overcome obstacles or get bonus diamonds. Successfully reaching the end point allows you to pass the level.