Answer:
A precious fluid, thicker than water.
Pirates put their booty in it.
I have five letters and people eat me. When you remove my first letter I become a crime. Remove my first two letters and I am an animal. If you remove my first and last letters I'm a form of music
I have legs but walk not, a strong back but work not. Two good arms but reach not. A seat but sit and tarry not.
A house with two occupants, sometimes one, rarely three. Break the walls, eat the boarders, then throw away me.
You use it between your head and your toes, the more it works the thinner it grows.