Both!
I rub the excess into my knees. Don't know if that does any good, but I have the feeling it's also something of a lubricant. It makes my socks give off a strange sweet smell but I've got used to it :D
ps- I've just noticed that it's recommended on the 'veloplus' mountain biker website (can't imagine what mb's use it for:confused:) and it's also on the top 10 list of things to put in the rucksack for the dedictaded pilgrim's 800kms walk along the jakobsweg...

