Wool

is used for several things such as Gauze, Vapntreyiu or Yarn.

How to Acquire
You need to equip a Sharp Tool, such as a Stone Axe, in order to shear a Sheep. Mouflons may also be sheared if fed one Four-Leaf Clover for each shearing.

The q of the sheared wool is influenced by the q of the cutting tool, the survival skill and either the sewing or sqrt(sewing*dex) skill (tested with thimbles).