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The YouTube tutorial discusses the offset path function in Illustrator and its use in logo designing. There are two key offset path functions in Illustrator, with the video focusing on one. The function is demonstrated by creating overlapping circles using the ellipse tool and duplicating them. By outlining the stroke of the circles to vector shapes and using the offset path function in the same drop-down menu, the illusion of overlapping circles is created. Tips and tricks for applying this function to logo designing are also provided in the tutorial.