HDCD recordings do not involve an additional layer, otherwise standard Redbook transports couldn't play them (which they can.) If a DAC, however, doesn't have the HDCD decoding chip, it just throws the extra HDCD information away and decodes it as if it was standard Redbook.
Wadia DACS, on the other hand, because of their unique algorithm software, DO look at the extra HDCD information (because thay can look at ALL the information) and so they incorporate it into the analog output signal -- and I might add, quite stunningly! (Ya jus' don' get da little logo ;--)
.