How does the Hola Chrome extension act as a proxy?

Given that the Hola Chrome extension is just an extension, how does it work as a proxy for P2P “VPN”? Do extensions have permission/capacity to act as a proxy?

Chrome has a proxy api for extensions. chrome.proxy  |  API  |  Chrome for Developers

Hola VPN used to perform DDoS attacks, violate user privacy

So please don’t use it.