The folks at Instagram have detailed The Technology behind Hyperlapse. Hyperlapse is the technology for smoothing out (though it’s much more than that) time lapse videos.
Hyperlapses are a special kind of time lapse where the camera is also moving. Capturing hyperlapses has traditionally been a laborious process that involves meticulous planning, a variety of camera mounts and professional video editing software. With Hyperlapse, our goal was to simplify this process. We landed on a single record button and a post-capture screen where you select the playback rate. To achieve fluid camera motion we incorporated a video stabilization algorithm called Cinema (which is already used in Video on Instagram) into Hyperlapse.