Well the CaPerl project he mentions just translates perl5 with his special keywords to standard perl5 code, I think. Who knows what he's doing here.
He's writing yacc for crypto protocols. You write an algorithm in his Stupid language, you and others verify it Stupidly, and then compile it to your real language.
So the language's compiler does analysis of the algorithm for common crypto flaws? (like buffer-overruns and timeable iterations ...)?
Nope. It does nothing at all except to standardize the notation.