Apparently, this stuff was like blaster-proof paint; the Decepticons ended up skinny dipping themselves in it and proceeded to kick Omega Supreme's butt.

Later on in the episode, Omega Supreme and the autobots all get dipped in the stuff and the ensuing battle destroyed the lake.

I don't know a whole lot about the show (I hope I spelled Decepticons correctly!), but I remember this cool episode vividly from my childhood and it seemed to have some environmental message, as well.