Made by Finculin, a young member of Gwaith-I-Mírdain before being swayed by the lord of gifts. The short sword is a mesmerizing ithilnaur blade with the a golden dragon forming the hilt and crossguard. Around the dragon, if you look closely, there are tiny wolves inlayed in the gold.
The blade gives +30 to ob and is a weapon of slaying against wolves and wargs, and glows with a dull blue whenever these creatures are nearby.
Source: Lords of middle earth I, p74