The SMTerrain class implements Seumas McNally's algorithm for regular-grid terrain LOD. It was implemented directly from correspondence from the dearly missed Seumas, and is highly similar to the implementation in his game Treadmarks.
This implementation requires that the input heightfield is a square regular grid of dimension 2^n+1, e.g.. 1025, 2049, or 4097. Storage requirements are around 3-5 bytes/vertex. The data is represented in memory by a regular grid of height values, an implicit binary tree of variance values, and an explicit binary tree of visible faces.
This is the fastest and most memory-efficient algorithm currently known for terrain rendering with a long viewing distance and an unconstrained viewpoint.