Once you reach the land of Veranto’or, you will be in the middle of a war between all of the factions you have come to know during your journey. If you travel south from where you spawn, you will come across the Demon Warcamp. Here, there is a demon known as Octric, Grand master of the Red Sun. He has a request.
Octric wants you to find out where the elves keep their prisoners and free one special prisoner from their chains, Melendrach. Unfortunately, this isn’t a jailbreak that will end happily because Octric wants Melendrach dead.
Travel to the Elven Camp. It is on the opposite side of the map from where the Demon Warcamp is. Follow the road out of the Demon Warcamp to the right, and you will come across the Elven Camp quickly. Enter the camp and go to the Elven Prison.
Travel to the other end of the prison to find an elven camp guard blocking your path. Interact with the guard, and a fight will ensue. It also turns out that Melendrach is an elf. Once the battle is over, Melendrach will join your team.
Now your objective is to leave the prison with Melendrach, but that is easier said than done. Octric is waiting for you, and it is time for another fight. That is unless you decide to give up Melendrach for some coin. If you choose to fight, you will increase your reputation with the Elven Alliance and decrease your reputation with the Demons.