Creation of the Races

Each race was created by a specific god, be it a patron god or a one of the 4 main gods.

Creation of Humans
Xibal learned how to create after making the dragons with his siblings. He decided he wanted to make a creature smaller than the dragons, like the monkeys that hung in the trees. He put all of his energy into making them, he made them sturdy and smart, so they could live anywhere they pleased. With all the energy they had, he knew they couldn't live long lives, so he and his siblings made the afterlife, of which he had dominion over.

Xibal was sad when he learned the humans would have to journey there alone so he made the dog, their ultimate companion who would go with them so no matter where the humans ended up, they wouldn't be without a friend.

The Creation of Goblins
One day the gods were creating creatures together. Xibal and Caelum decided to work together to make a strange creature with long legs, big ears, and big eyes. They asked Laka, their sister, and the goddess of the ocean if she wanted to help, and she said no, busy making sea creatures in the ocean. They kept poking her and prodding her and put the creature on her head. In her rage, she threw the creature against a mountain crushing it until it was small, calling Goblin as an insult. The creature didnt understand and took it as a name, thinking it as a compliment for surviving the throw.

and thats why goblins are short kids.