What does parawax do when called for in a recipe such as buckeye-balls?

Answer 1

Gives the chocolate stability and shine.

Answer 2

It gives a smoother texture to the chocolate or dipping sauce. Think of how a single chocolate chip looks right out of the bag and say a Brach's chocolate covered cherry, the one out of the bag is flaky and bakery item would have a smooth look.

Answer 3

It keeps the chocolate from melting too easily and gives it body.