Andvari

Loki struck Ótr with a stone and killed him as he sat on the river bank, eating a salmon with his eyes closed. The Æsir took the otter’s skin and the salmon. That evening, they reached Hreidmar’s dwelling and asked for lodging. When they showed him their catch, Hreidmar recognised the otter as his son and seized the visitors. He demanded compensation for Ótr’s death. The Æsir had to fill the otter skin with gold and cover its outside with red gold.

Loki went to obtain the payment. He borrowed Rán’s net and travelled to Andvara-falls. There, he cast the net before a pike. Andvari had transformed himself into the fish, but he leapt into the net and was caught. Loki demanded his gold. Andvari surrendered his hoard and the ring Andvaranaut. The gold filled the otter skin and covered its outside. One hair remained visible. Loki used the ring to cover it and complete the ransom.

Before surrendering the treasure, Andvari cursed it. He declared that the ring and the gold would become the bane of their possessor. The curse was later fulfilled. Hreidmar accepted the hoard as payment for Ótr’s death.

Fafner and Regin then demanded their share as compensation for their brother. Hreidmar refused to give them any of the treasure. The brothers agreed to kill their father for the gold, and they did so. Regin then demanded half the hoard from Fafner. Fafner refused. He said that he was unlikely to share the gold after killing their father to obtain it. He ordered Regin to leave and threatened him with the same fate as Hreidmar.