The shroud (Na'vi name: Loiyokx) insect looks like a mix of a beetle and a dragonfly with a large egg sack on its back. It has two main phases in its life cycle which is reminiscent of the mayfly in its duration. The short adult phase is purely dedicated to finding the freshly dead body of a larger creature and injecting it with eggs.
In a moment of egg-laying frenzy, a swarm of up to a hundred insects will quickly cover the carcass. As the eggs are injected, the shroud deploy a mushroom-like substance from their egg sack that expands rapidly and solidifies to form a durable, umbrella-like shield that protects the eggs, thwarting any scavenging attempts by other creatures. Having so expended itself in the creation of a new generation, the shroud dies.
This "shrouding" of the dead is an eerie yet fascinating spectacle which has not gone unnoticed by the Kame'tire clan. The shields that are left behind bear a striking pattern and are used in the death-related rituals of the Kame'tire. There they are held over the dead and then lifted away, the motion repeated several times to the waxing and waning of the ritual singing, symbolizing the person's transition to Eywa.
There are also at times contradictory lessons among the Kame'tire concerning the single-minded behavior of the shroud. The way it lays down its life for its children is regarded with admiration, yet at the same time, the shroud is used as a cautionary example of becoming obsessed with a single goal in life.
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Source[]
- Hunter's Guide in Avatar: Frontiers of Pandora.