I cannot find any information anywhere as to what it actually does.
Tooltip just reads: “Infuses the item with the essence of decay.”
Protects you from GD’s bullpuppy 
No one makes anything that strong
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After a quick search, I only found that they improve the effects of the Toxic Thorn Footwraps.
It’s a crafted embellishment made by leatherworkers, that increases recipe difficulty by 25-35 based on tiers 1-3. They make it easier to craft certain armor like ‘Flame-Touched’ for mail at a higher item level. There are different but similar types of embellishments for other armor and weapon types.
