The dwarves, who were named Dvalinn and Durin, asked if they could buy themselves free and undertook to make a magic sword.
The sword would neither break nor rust and it would cut through iron and stone as easily as through cloth and would always give victory.
When Svafrlami acquired the sword, he saw that it was an exquisite and beautiful weapon and it was named Tyrfing.
However, before disappearing into the rock, the dwarves cursed the weapon so that it would never be unsheathed without killing a man, would be the undoing of Svafrlami and cause three evil deeds.
According to the R version, Arngrim became the war-chief of the aged king and was given both Tyrfing and Eyfura as rewards.