The Grey Sleeper (quest)

 is a side quest in.

Synopsis
The Watcher has found an estoc in a mysterious stone pedestal near Longwatch Falls. Upon removing it, they realize that the weapon is cursed and soulbound - it tethers itself to the wielder.

A poem is written on the blade, and the verses may hold the key to removing the curse.

Walkthrough
In the northeast part of Longwatch Falls, you'll find an alcove in the stone wall with an estoc sticking out of a rock. It is guarded by various spirits including a Wraith, so you'll have to fight through them first.

Activate the estoc, and a scripted interaction starts in which you can choose a party member to try to pull it out. To succeed, you need one of:
 * 11 Intellect and 13 Might – insufficient Might leads to Minor Fatigue
 * 16 Dexterity and 13 Might – insufficient Might leads to Minor Fatigue
 * Fan of Flames
 * 16 Might

The estoc with the name The Grey Sleeper will automatically be soul-bound to the character who pulled it out, and you'll never be able to bind it to another character.

Also, there's a curse on the weapon, which prevents you from unequipping it until the quest is complete. To lift the curse, you have to follow the instructions which appear in the form of a riddle on the blade. Each time you solve one verse, another appears, for a total of three times. Here's what you need to do to solve all three:

With that, the curse is lifted, and the quest ends. From now on you'll be able to unequip the The Grey Sleeper like any other weapon, though it will remain soulbound to that character.