Continuous Claude addresses Claude Code’s context compaction problem by implementing a layered architecture of skills, agents, and hooks. It uses YAML-based handoffs for token-efficient context transfer across sessions, maintains a memory system that recalls previous learnings, and provides a 5-layer code analysis system (TLDR) to reduce token burn from reading entire files. The system orchestrates 32 specialized agents with isolated context windows and integrates with MCP servers for extensible tool execution.