Current OpenWRT uses musl libc[1] which can be optimized to have a tiny footprint and supports full static linking, before that it used ucLibc which was similarly optimized.
You can still build software for OpenWRT that requires the much bigger Glibc, but of course it will not work that well on devices with limited memory.
The original releases of OpenWRT used uClibc, which is nowhere near Glibc levels of bloat (Musl beats it on code quality and is used today, but didn’t exist back then). Also, yeah, you’re going to have a libc on a Linux system no matter what, so this is one of the rare cases where dynamic linking makes for a legitimate optimization.