It uses LDD’s ldraw.xml conversion file (up-to-date version included) to convert colours, ids, and positions/rotations. It converts LDD’s groups into LDraw subfiles. It also converts decorations (when possible/available in LDraw). And it converts flexible parts, they are exported as LSynth commands.
lxf2ldr comes only is source form and needs to be compiled.
It uses Qt5 core, QuaZIP and yaml-cpp libraries.
If you can’t build from the sources, or don’t like or want to, lxf2ldr.html, a sibling project, is made for you.