FREQ adjusts the sampling rate, from 48,000 Hz down to 110 Hz. The sampling rate can be modulated by LFO or envelope follower.
New frequencies are created as the sampling rate is reduced:
What is sampling rate? When an analog signal is converted to a digital one, it has to be translated from a continuous waveform into a series of samples, similar to how a video is composed of some number of “frames per second”. Bitmap can sample an incoming wave up to 48,000x per second, while at the lowest setting it will only sample the wave 110x per second.
The relationship between the specific incoming pitch and the chosen sampling rate will cause the frequencies above the sampling rate to fold down to lower frequencies, producing inharmonic distortion.