Thingiverse user Brian Beebe has contributed this great design for an electrified wire-stripper that uses an LED to tell you the instant the razor-blades have penetrated the insulation, completing the circuit that lights it up.
Use:
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Sight down the blades.
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Align the blades with where the wire should be stripped.
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Move the wire into the blades having the blades cut into the insulation.
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When the blades cut through the insulation and contact the wire the LED will light.
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Spin the wire or the tool to cut the insulation completely around the wire.
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Remove the wire from the tool and pull off the insulation.
(via Make)