Gift from Sylvian, the Grandmaster at the Colosseum of Ashes.

Its twin is used by the Elven gardener Mindle at the Palace Gardens in Sabek;

“The dagger was a gift. You won’t find another like it in this world.” - King Taron - Silver Threads of Fate (LC1)

Brought into the Grandmaster's private viewing area, she informs you that she and her guests were impressed by your fighting. She may give you the knife as a reward, either because you:

• Responded with wit and charm, bringing the entire room down with laughter.
• In a fit of outrage, she activates your collar but you manager to smile through the pain.

Exploring the Temple of Shintal, you discover a secret weapon cache. Among the weapons is a glass dagger which you take into your personal inventory.