If you meant (not code): It uses a proprietary sequence of smoothing, corner detection, bezier curve fitting, and color quantization to convert bitmap → scalable vector (SVG/EPS/AI) with far fewer nodes than standard potrace.
If you are looking for the features of the famous "Vector Magic" tool, here is what makes it the industry standard: vector magic github
Want me to extract a using VTracer instead? If you meant (not code): It uses a
Vector Magic is an algorithm that automatically converts raster images (such as JPEG, PNG, and GIF) into vector graphics (such as SVG, EPS, and PDF). This process is also known as vectorization. The tool uses advanced algorithms to analyze the raster image and create a vector representation of it, which can be scaled up or down without losing quality. This process is also known as vectorization
(older but classic) → https://github.com/autotrace/autotrace