What is 'engine braking' on a motorcycle and how is it used properly?

1. Downshifting through gears sequentially and releasing the clutch smoothly to allow engine compression to slow the motorcycle
2. Shutting off the ignition switch with the key while driving at 80 km/h
3. Pouring motor oil onto the brake pads
4. Pulling the clutch lever and holding it in while coasting downhill