WED is a hardware flow offloading subsystem in the EN7523 SoC. The IP block seems to come from the Mediatek MT7622 SoC. The patch adding support for this in linux describes it as the following:
This patch series adds hardware flow offloading for routing/NAT packets from
ethernet to WLAN on MT7622 SoC, in combination with MT7915 WLAN devices
This only offloads one direction, WLAN->Ethernet offload is not supported by
MT7622 (but will be in newer SoC designs).In order to make this work, the SoC contains a subsystem named Wireless
Ethernet Dispatch. It intercepts access to the WLAN DMA register space and
controls the DMA queues in order to be able to inject packets coming in from
the packet processing engine (PPE). It also intercepts IRQs from PCIe.
The above information indicates that WED only supports hardware offloading in the tx direction (unverified) from the routers point of view.
The below illustration describes the data path.
Any traffic that is destined to the WiFi needs to go over the pcie interface. An offloaded flow would then go from a PSE port to the GDM3 port and then via the WED interface injecting packets into the pcie DMA descriptor rings.

The following document describes WDMA registers.
MT7981