Inside the Lake of Dreams sleeps The Dragon of Dreams, ruler of the Dreamscape, connecting alternate realities, Ysera. It is said that Ysera dreams when the Moon of the Dreamscape lines up with the Moon of Enterra, causing reality itself to be altered, warping the arcane mathematics that governs it, and often heralding major events that reshape worlds. Ysera protects the seal that holds of one of the Apocalyptic Beasts of Enterra, The Darkness, the Eternal Nightmare. Apocalyptic Beasts are legendary beasts, children of the Gods corrupted by Karthenos of the Mist, driven to end the world and slay the gods, and must not be awakened at all costs.

Ysera grants those who sleep dreams of fortune and well-being. However, sometimes the Darkness can creep nightmares into unguarded mortals near the Lake of Dreams, beckoning them to free it, along with the eternal darkness and nightmares it brings.