Importing an Edit Decision List (EDL) allows you to work with a timeline that contains shots and soft transitions (such as dissolves). In this case, files are first imported into Smoke from the Stone FS and assembled into a timeline. Lustre gains access to the timeline as an EDL by way of Wiretap. This is a useful workflow for shot-to-shot grading.
In Lustre, you create local proxies and grade them in EDL context. Lustre then renders the final clip to local storage using the One Sequence option in the Render Local menu. See Specifying the Destination for Local Render Files.