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The imps were created as slaves by the Dark Elves, but recently they have broken the spell of shackles, and ran away into the woods. The Dark Elven Tetrarchs are preparing a new spell to lock up the imps, but they need the Imp Shackle. Go into the Dark Elven Forest and return the Imp Shackle. You shall receive a reward by Sentry Krispen.

1. Speak with Sentry Kristin just inside the western town entrance.
2. Imps (lvl 6 passive) and Imp Elder (lvl 7 passive) to the west/northwest of town. Each kill will give you an Imp Shackles.
3. Return to Sentry Kristin at any time and turn in the shackles for 13a each.

You can continue to do this quest indefinitely and return with any number of shackles at any time.