it leverages your code-base, rather than connecting to your database. it uses to libpg_query (https://github.com/pganalyze/libpg_query) to construct the syntax tree which can then be used to for the LSP features
It will definitely be supported at some point. We will have some features that require a db connection, eg autocompletion or code actions such as „Execute the current statement“. But always as an opt in.