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The YouTube video tutorial explores the offset path function in Illustrator and its application in logo designing. There are two key offset path functions in Illustrator, demonstrated with a circle created using the ellipse tool. The function allows for creating the illusion of overlapping shapes by offsetting the path. To use the function, outline the stroke of the shapes to vector shapes and access the offset path function in the same dropdown menu. The video provides tips and tricks for effectively applying the offset path function in logo designing.