About the World: Crafted Items & Recipes
As you journey through the world, defeating monsters and resolving quests, you'll pick up various "loot" items in your inventory. These items can be exchanged into other (more useful) clothing or house items...as long as you have the necessary recipe. Where do you get recipes? You can buy them from other players, or find them as quest/loot rewards. As an example, here's an illustration of a girl wearing the ninja-to (straight sword), ninja-yoroi top and bottom, and the ninja hood...all of which can be crafted from monster loot items.
Using a recipe is as simple as taking that recipe to the zOMG! shop, and if you have the proper items to combine with that recipe, then the item is crafted for your right on the spot and you can wear/use it immediately.
Much adventuring in the Otami Ruins area can gain you recipes that allow you to create this splendiferous Otami armor.
If you explore on Gold Beach, and do favors for a few of the surfers there, you can end up with a sick set of rad threads and maybe even a board of your own!
The Tinker's Wagon
Nicolae ("Nicu" for short) has a mobile shop in the back of his horse-drawn wagon. He's a somewhat mysterious fellow that traffics in the new items found after the Animated began to appear in the world.
Nicu is the one that handles all the recipe exchanges, converting loot drops into items that you can wear and place in your house. He also sells rare and unusual items that may pique your interest. Stop by and say "hi" sometime.
Loot items are component pieces that are combined to make bigger items. For example, you make the ninja suit, otami armor, and surf gear out of pieces like these by combining them together using certain recipes.