I've always thought that Loki's evilness is a misconception. He is the "God" of
mischief and a
trickster, but he is not really
evil. He is a son of
giants (
jotuns), who are considered the evil counterparts of the
Aesir, but he has been accepted as a friend and advisor of
Odin. On several occasions, for example when
Skadi comes to
Asgard for revenge (
see my wu on Skadi), Loki is in fact a
creative hero, finding solutions no other
Aesir could think of. Personally, I think Loki's role in
Norse Mythology is to show us that even those who seem evil at first glance may have good ideals.
One of the stories about Loki is the gifts to the gods.
Incidentially, the Aesir eventually gets fed up with Loki and chains him to a mountain, where a serpent drips poison in his eyes. His wife, Sigyn does not abandon him, but tries to stop the poison with a bowl. When the containter is full, she has to turn and empty it. This causes the painful venom to drip in Loki's eye, and he twists in pain, causing earthquakes.