I'm pretty sure they mean that they are using Merkle DAGs. A blockchain is a Merkle DAG. The proof-of-work algorithm in Bitcoin is an algorithm for deciding how a node gets added to the blockchain. Depending on how you look at it, that algorithm is not part of what makes it a "blockchain".
Admittedly people are sloppy about how they use the term "blockchain". I would prefer that people use the term Merkle DAG and forget the term "blockchain" altogether, but I think we are stuck with "blockchain" ;-)