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The lib directory is used for storing IP cores that are dressed up and
organized as Xilinx Vivado IP pcores, ready to be composed in an Vivado
block-design based project. Users have the ability to create a separate library for
their own IP if so desired.
The projects directory houses the projects. Although users are free here to
organize their project's directory however they want, using whatever tools they
want, the projects generally separate hardware and software at the root level
into hw/ and sw/ subdirectories.