Need help on how to use 'condense' utility

I am new to tern and am trying to implement it to a big project. I need to assign definitions and found out condense under utilities section in the reference.

I am having a hard time figuring out how to use it. As the codebase will be large and we cannot provide a complete folder to it, how am I supposed to tackle this. Also can I use dist files.

Also, when to use which plugins??

Please help!!