Quick post to show you guys the rough process for gifts and gift exchanging during Wintersday. Completing themed events (like the PvP snowball mini-game) rewards personalised gifts which you can open for a chance at goodies:
Opening these usually gives you ugly woolen items. The only purpose for these items is to exchange for better items. These better items appear to be what you have a chance of getting from each gift - so even when you're unlucky you can still save up for an item skin or recipe or materials:
This particular Lionguard present exchange fellow deals in ugly wool socks only! Tiny snowflake looks to be (I may be wrong) the only material you can exchange - but there are other materials (I got this from a gift):
The event is packed with fun so get in and get playing!