Why for the Wizards? We trade Otto but get a young big in return. Faried slides into the rotation as the 3rd big. By next season he ideally is starting next to Gortat with Nene coming off the bench. We get him on the cheap and don't have to commit long-term until after next season. We can then turn our focus to re-signing Gortat/Ariza and we'd still have the MLE. We also get Miller who's experience sharing the court with Lawson should allow him to play with Wall as well.
Why for the Nuggets? It seems like Shaw/Faried aren't on the same page and Denver doesn't seem anxious to pay him what he wants. Denver is sliding and is dropping out of the playoff hunt. Frankly this season is a great opportunity to tank with some good talent on the roster. They get a young SF in Otto and a replacement big who they can re-sign if they want.