The APY Food Chain Explained
Aggregator of layer 3 strategies. This layer does not create its own trading strategies but rather relays funds to layer 3 services.
Handles asset management using DeFi strategies: vaults providing yield farming strategies to optimize usage of the different DeFi services and farming rewards.
Handles liquidity incentivization: yield farming over base assets for further rewards.
Lending & Dex
Lending and swap protocols are the corner stone of the DeFi space. They generate revenue by distributing the swap/borrowing fees between the liquidity providers.