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In a world of Scandinavian-Germanic myth, filled with God's and monsters, the Dwarves are a race that emerged from the corpse-maggots that fed upon the giant-god Ymir and were given the spark of divinity and a humanoid form, they reside in an underground world between the world of the mortals, and that of the dead.
The Dwarves have a Stonelike skin which makes them resistant to heat and fire, and gemlike eyes that allow them to see clearly in the dark, their hair grows long, and resembles the beards of moss and lichen which grow upon a boulder, they are short and stout, but with a giant's strength and surprising quickness, they are a race of earth and fire.
They recently began making settlements in the daylight of Midgard, world of mortals, the light of day does no turn them to stone, and their women do not grow any more racial have than their men do, who could shave off their beards at any time, and often do when they attempt to interact with humans.
The idea of Dwarves as being ugly or bearded creatures will be dispelled, as there will be handsome young men and beautiful young ladies featured prominently among their number. The Elves will also get a change up and be more than humans with pointy ears.
Taking inspiration from elflike beings as described in myths like those of the "huldra" hidden folk, The Elves are another race which are starkly contrasted to the Dwarves, they have a blue or purple skin, pointed ears and slitted eyes like a lynx, horns upon their heads, and a black fur that goes down their backs, at the end of the fur there is a tail, their legs are plantigrade, but their feet are not hooves, they are made to travel fast and quietly, they have fangs and claws like a lynx-cat and a tongue that is between that of a cat and human's as well. The horns of the females resemble those of a hind, while those of the male are more like those of a stag, the tails are somewhere between that of a monkey and that of an aurochs. The Elven racial elements are of water and air, in contrast the earth and fire of the Dwarves, and they are taller and lither than a man, rather than shorter and stouter, they have angular features that contrast to the rounded ones of the Dwarves, and they live in the world just above mortals, rather than below, where Dwarves are exceptionally strong and surprisingly quick, the Elves are exceptionally quick and surprisingly strong. They are a race of carnivorous hunters who dwell in the treetops and riverbanks, known for their habit of kidnapping lost humans to be their partners in order to add mortal genes into their populations.
Elves think of humans and Dwarves as being different varieties of elf (the Dwarves are the Elves of the darkness), they aren't especially connected to nature, merely primitive, and that is changing as their recent loss to early humans wielding iron technology has caused their leaders to want to invest into technological advancement, despite this, they have cultural differences that continue continue hold them back, even as they try to force themselves into the future, for example, they still freely engage in the practice of cannibalism.
The Elves and Dwarves do not get along with each other, nor do they get along with the rival clans of their own races, they are very much like humans, though the humans pretend otherwise.
The gods are often very involved in mortal affairs, as are the monsters that frequently clash with divine will. The general events of Ragnarok are vaguely known, but the details are not, only the norns know for sure, and they will not say anything, except when something manages to surprise them, not bevause they slipped the grasp pf fate, but because the knowledge of the prophecy caused the fulfillment of it to change form (a good reason why the norns are so tight lipped), not even the great one eyed wotan, lord of asgard, ever thisting for greater wisdom and knowledge, would dare to upset the sisters of fate.
Also, rayatoskyr is a royal dick.