Robin Hobb's Realm of the Elderlings Wiki
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Wizardwood is not in fact wood but the outer cocoon from a sea serpent in its transformation into a dragon. The Wizardwood logs were found by the Rain Wild Traders buried in a destroyed city of the Elderlings in the Rain Wilds, which they excavate for valuable artifacts. The 'wood' has magical properties which made the carvings and ships (called Liveships) created from it extremely valuable.

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