It doesn’t. A DC-DC charger trades extra amps for higher voltage - that is, it will take in more amps than it produces, but it can produce those amps at a higher voltage. That is why DC-DC chargers have low(er) outputs. You must still wire properly, that it, heavy enough, for a DC-DC charger to work correctly. The idea that a DC-DC charger "magically" lets you use smaller wire is simply wrong.
It may allow you to use slightly smaller wire, but that is only because the output is reduced. For example:
On my Chevrolet based camper with a 200A alternator set and an intelligent relay, everything was sized to pass 150 - 200A with minimal voltage drop. On my Mercedes Benz, running a 40A DC-DC charger (to change from 24v to 12v), everything is sized to pass 60A, the recommended fuse value.
A DC-DC charger is wonderful if you use it as originally planned, that is, on a vehicle whose native charge voltage is typically too low to fully charge a large, deep cycle camper battery. In the case of Sterling Power, this was narrow boats that ran at 13.9v. The first Sterling Power DC-DC chargers raised this to 14.4v and the results were amazing. Got a Chevrolet that goes to 15.5v? Use a relay and a big wire and you will get even better results. Got a Toyota that runs at 13.9v? Get a DC-DC charger or you will kill a lot of camper batteries.
Other, odd uses:
-- Connect 12v camper battery to a 24v truck.
-- Protect a vehicle alternator from overload from a discharged lithium batter.
None of this is hard, you just have to go step by step.