How does the distro exactly improve performance?

The performance tweaks package includes numerous things to enhance performance. You can check out what each package does at it's upstream project.

See the list of dependencies:

ananicy-git
auto-cpufreq-git
haveged (haveged-git)
hdparm
irqbalance (irqbalance-git)
memavaild-git
nohang-git
prelockd-git
profile-sync-daemon
systemd-swap (systemd-swap-git)
thermald (thermald-git-gcc10, thermald-git)
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