Image imported from derpibooru 
Original Description:
 
Dalem Sundown & his pet wolf Lykos redesigned!  
With lore!
 
 
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Dalem is very knowledgeable in areas of magic and loves stones and crystals. He often collects them and he reads all up about them. In his spare time he often loves to study rocks and different types of magic, and practicing spells. He’s competent in magic but not an expert.
 
However, one day Lykos had perished, torn apart right in front of his very eyes, protecting Dalem by a foul demon. Luckily, Dalem was able to fend it off using his magic pickaxe and various spells.
 
But, in an effort to prevent the death of his best friend Lykos, he took Lykos’ body back to his home, where the unicorn goes and takes one of his precious gems from his collection, and returns to his friend’s body. With his knowledge of magic combined with his desperation, Dalem tries to separate Lykos’ soul from his body and incorporate it into the gem. Essentially creating a soulgem.
 
Overtime Dalem improved it, enchanting this gem multiple times and tried to sprinkle memories of happiness within the canine’s soul in the crystal. Basically, he was performing the opposite of torturing a soul.
 
And overtime he managed to bring Lykos’ soul, memories, and being from the ether. Dalem was basically reforming it’s consciousness, and developing a ‘spiritual brain’ as opposed to a biological one.  
And by developing it’s spiritual brain and consciousness again with it’s soul, it was able to form a body using it’s surrounding materials with magic and become whole in the real world. And by the end of the year, Dalem had his best friend back.
 
Lykos is a Timber Wolf in nature, but is able to shift and change it’s materials out from wood as it pleases. It can also change it’s size, from a small puppy to a large building sized creature made of all kinds of materials, such as rock, plants, dirt, crystal, stone, steel, metal, alloys, machines, and yes. Even dead biomatter can be included.
 
You can give the soulgem a set of plate armor and you’d find yourself with a crumpled piece of steel all merged together to create an armored, fourlegged wolf.