What is it?

[Brewskie]

Bit of a nube here but was wondering the stuff is around the ESC wires an the motor wires that I see people putting on an what does it do?

[mattr]

heat shrink tube?

http://en.wikipedia.org/wiki/Heat-shrink_tubing

stops bare wires touching (and making a big mess).
Also covers up my woeful soldering jobs

[Brewskie]

Sorry not the heat shrink, it looks like putty or something

[big_whyman]

If it is happening in the wet, I would suspect you mean good old fashioned blutack. Alot of drivers use this as a way to keep water out of the electronics

[Brewskie]

I see, take it it works then

[badger5]

It could be Lazy Goo that you ave seen, it's sold by RCLazy in Bournemouth. We use to help waterproof the ESC and motor. You can find it here http://rclazy.com/shop/lazy-things/lazy-goo/