For the attack on the homestead, talk to Zixzax and check your quest log:
you need to destroy the large blood stone in northern Luculla, in the area with cultists and demons.

Merchants will not die from rot, just drop to 1 HP.

There are at least a couple places you need to use the pyramids.


BTW, you can now use UBBCode (like spoiler tags). There are restrictions on new accounts to discourage spam.