Mjollnir, Thor's weapon of choice, was created by two dark elves on a bet that they couldn't make impressive magical objects. Mjollnir's handle is too short, since Loki turned into a fly and bit one of the dwarves repeatedly while the hammer was being made. Other than that, Mjollnir's pretty cool. It acts like a boomerang.
The wager in the bet was Loki's head. All the gods laughed when the two dwarves came to take it. Then Loki tricked them out of it, and they only sewed his lips together with twine. Norse mythology is fun!