This is precisely it, and is a similar approach to the ones used by other anonymization networks as well. This allows your entry node to know your node/IP is using the network, but with a secure end-to-end tunnel, nobody along that tunnel knows the entire source -> destination path or data, so it is usually considered sufficiently anonymous and secure.

They state they take inspiration from Tor and IPFS, so there are added transport layers below the top layer “P2P” that obfuscates ones IP address. It’s nothing new really, and I’m honestly not sure what the advantages are over something like I2P, which largely doesn’t suffer from Tor’s issues of node ownership as there are no guard or exit nodes to own (unless expressly configured), while also being faster overall.