Then Regin tells Sigurd a story: His father Hreidmar had three sons: himself, Otr, and Fafnir. Otr was an otter-like fisherman, Fafnir large and fierce, and Regin himself was skilled with ironwork. One day Odin, Loki and Hœnir were fishing and killed Otr in his otter shape, skinned and ate him. King Hreidmar found out and demanded that they fill and cover the skin with gold. Loki went out and took the dwarf Andvari’s gold and the ransom was paid. The dwarf cursed the ring Andvaranaut ("Andvari's gift"), saying it will bring death to anyone who owns it. Fafnir later killed his father, hid the body, and took all the treasure (and ring) to his hoard. He turned into an evil dragon, and Regin became a smith for the king.