# What is Canopy?

Canopy can be understood by its four key layers:

1. [**Application Layer**](https://docs.canopyhub.xyz/canopys-four-layers/application-layer): User-friendly interface for effortless deployment of yield generating liquidity.
2. [**Reward Distribution Engine**](https://docs.canopyhub.xyz/canopys-four-layers/rewards-layer): Enables any project to incentivize value creating behavior with $MOVE or their project token.
3. [**Strategy Layer**](https://docs.canopyhub.xyz/canopys-four-layers/strategy-layer): Smart contracts that define optimal liquidity flows across the Movement network.
4. [**Protocol Layer**](https://docs.canopyhub.xyz/canopys-four-layers/protocol-layer): Integrated AMMs, lending platforms, perpetual DEXs (PerpDEXs), and staking platforms.

Together, these layers form a platform where liquidity providers thrive.

<br>