That's pretty much exactly right. The one I've used is called Chamois Butter though. You're supposed to apply it all over the Chamois area to provide a moisture barrier so you don't end up with a heat/sweat rash. It's kind of like a lotion and it's shouldn't irritate any of your more sensitive areas.
I don't really like to use it personally. You might want to try it on a shorter ride before your long ride to make sure how its going to feel. I am usually just fine with a good, clean pair of bike shorts.
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