Basically, the WAVEFOLDER clips and folds an incoming waveform. Usually waveforms with little overtones like triangle or sine waves are used as input. In general, by the clipping and folding, the WAVEFOLDER enriches the input signal with more overtones.
The module is based on a design also used by Ken Stone for his CGS modular. The original circuit dates back to a publication from 1973.
These merchants probably sell this module. Huh?