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After a protracted war, the Vanes and Aesir seal the peace with an exchange of hostages; Mimir, Odin's faithful advisor, also goes to live with the Vanes; Asgard must be rebuilt.
Odin, up on his observation throne, discovers the children Loki has fathered with the giantess: the wolf, the snake, and the monstrous child.
Odin, who wants Sigurd dead so he can recruit him, reveals to Brynhild she has fallen victim to deception.