Rope, see, that is tied around donkey (5)
I believe the answer is:
lasso
'rope' is the definition.
(lassoing is a kind of roping)
'see that is tied around donkey' is the wordplay.
'see' becomes 'lo' (archaic word meaning 'look!').
'that is tied around' indicates putting letters inside.
'donkey' becomes 'ass' (I've seen this before).
'lo' going around 'ass' is 'LASSO'.
(Other definitions for lasso that I've seen before include "Somehow catch" , "Rope used for catching cattle" , "Cowboy's rope with sliding noose" , "Rope for throwing" , "Rope for catching livestock" .)