Now, take the stairs on the right and then smash the red barrel to shimmy along the cliff. You can use the gate here to leave the area quickly and then interact with the rotating mechanism to move the elevator down.
Freeze the gear with your axe, then climb the cliff again to get onto the elevator roof. Now take your ax so you can go up. Here you can now go down through the floor to get into the cave below. Here you can find the watchtower key in the equipment chest.
Go back to
You must now free the Lyngbakr. It has two fetlocks on each side and one on the far east on the caudal fin. The path to the first two shackles is relatively straight forward. However, after cutting the second shackle, be careful to destroy the monster hill in front of you. Behind it you can take endlessly spawning fire bombs, with which you have to destroy the rocks in the north. Then grab another firebomb and jump over the jump to the north. Look down to the east to the blocked pier and destroy the rock with a bomb here as well.
Now return to the boat and paddle to the jetty on the other side. Climb up here to the last binding and cut it. Then use the zipline and swing down to the east side. From here you can destroy the last chain with the axe.
Now all you have to do is sail back to the Whale's Eye
to complete the side quest. By completing the quest you will unlock