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This looks like a potentiometer, but it’s an encoder switch.
It is a cascadable 360 ° rotary encoder switch with 20 pulses per revolution, and each pulse corresponds to a detent. There are LED lights set for each detent to allow users visually check the real-time status of the encoder.
For ease of use, the module is designed with I2C data output and configurable accuracy within 1~51 for every detent (set in the program). For instance, when it is set to 1, turn on one LED light by rotating 2.5 revolutions; when set to 51, then one LED light can be switched on by rotating one detent.
In order to apply to more scenarios, the encoder is equipped with cascade function that enables to control multiple output devices by occupying only one I2C interface, such as, simultaneously controlling light brightness, color, volume, speed, etc.
Use Case Diagram (Control RGB LED by three encoders)