Prose: Selection from Skaldskaparmal in the Prose Edda
But Skadi, daughter of giant Thiassi, took helmet and mail-coat and all weapons of war and went to Asgard to avenge her father. But the Aesir offered her atonement and compensation, the first item of which was that she was to choose herself a husband out of the Aesir and choose by the feet and see nothing else of them. Then she saw one person’s feet that were exceptionally beautiful and said:
“I choose that one; there can be little that is ugly about Baldr.”
But it was Niord of Noatun.
It was also in her terms of a settlement that the Aesir were to do something that she thought they would not be able to do, that was to make her laugh. Then Loki did as follows: he tied a cord around the beard of a certain nanny-goat and the other end around his testicles, and they drew each other back and forth and both squealed loudly. Then Loki let himself drop into Skadi’s lap, and she laughed. Then the atonement with her on the part of the Aesir was complete.
It is said that Odin, as compensation for her, did this: he took Thiassi’s eyes and threw them up into the sky and out of them made two stars.