The incoming audio is first processed by an encryption algorithm, based on the displacement of frequencies along the audio spectrum, and then it passes through a comb fiter and a SV filter. This SV filter can be modified by using a 16-step LFO, which controls filter frequency, filter resonance and encryption mode.
Dream Sequencer is for Producing those simple deep bass sequences of the 70's as produced by Tangerine Dream etc. The VSTi synchronizes with the host bpm / bar start, and it takes its root key from a "midi note" and plays for the duration from "note on" until "note off".