Loki discovered his Jotunn heritage initially when he accompanied Thor, the Warriors Three and Sif during their incursion into the realm into Jotunheim. Volstagg warned the group that if a Jotun touches you would turn into a Jotun yourself.
In 'Thor,' Loki learns he is Odin's adopted son and his true father is Laufey of Jotunheim. We are introduced to Loki as one of Odin's two sons, the other being Thor. But later on, we find out that Odin actually adopted Loki after he defeated Laufey and the frost giants of Jotunheim.
Citing the Marvel Visual Dictionary, this theory explains that Odin used magic to make Loki seem Asgardian. However, Odin must have used stronger magic than a simple illusion. Otherwise, Loki would have turned blue in Loki when he entered the Time Variance Authority (TVA) Office, where magic and powers did not work.
How does Loki have God powers if he's a frost giant?
Loki's magic in the MCU is innate, he doesn't need to study or use incantations to tap into his powers. As a Frost Giant, he is born with magical abilities and has been trained in Asgardian sorcery. Loki's magic is more about trickery and deception, utilizing illusions, shape-shifting, hypnosis, and telepathy.
Powers. Frost Giant Physiology: Frost Giant Loki is a Frost Giant, however, unlike his original self who has been enchanted to look like an Asgardian, his appearance remains as a Frost Giant.
Loki Finds Out He's A Frost Giant - Thor (2011) Movie CLIP HD
Why did Loki let the Frost Giants in?
Loki, the son of Odin, desired to become king of Asgard and prove himself to his father after years of living in Thor's shadow. As part of this plan, he allowed a team of Frost Giants to enter Odin's Vault. Three Frost Giants killed the guards of the vault and acquired the Casket.
In his exile, Odin apparently thought over all the acts he had done and likely felt remorse over them, as he showed no hostility towards Loki and even noted Frigga would be proud of him. He also admitted that he truly loved both of his sons and expressed remorse for failing to stop Ragnarök.
Loki's lack of magical powers in the TVA is a deliberate narrative choice to force him to face his character and responsibilities. The TVA blocks magical powers to protect the Sacred Timeline, and two possible explanations for this are explored.
In his comic book appearances, Loki is depicted as the Asgardian God of Mischief, a cunning trickster, and a master of Asgardian magic and sorcery. After learning of his true origin as a Frost Giant from Jotunheim, Loki grows jealous of Thor and frequently plots to take the throne of Asgard for himself.
Ages ago, Odin fought and defeated Laufey and the Frost Giants of Jotunheim in a great war. Abandoned and left for dead as a baby due to his diminutive size, Odin took Loki, son of Laufey, to Asgard to raise him as his son and a prince in order to one day unite the Frost Giants and the Asgards in peace.
As Atreus wonders about his heritage, he also learns that his mother gave him the birth name Loki. During Fimbulwinter, Atreus seeks answers about his Jötunn heritage, something Kratos cannot answer.
Loki is married to Sigyn and they have two sons, Narfi or Nari and Váli. By the jötunn Angrboða, Loki is the father of Hel, the wolf Fenrir, and the world serpent Jörmungandr. In the form of a mare, Loki was impregnated by the stallion Svaðilfari and gave birth to the eight-legged horse Sleipnir.
Loki Is a Frost Giant, With Superhuman Strength, Durability & Longevity. Initially believing he was an Asgardian, Loki's reality shattered when he learned he was a Frost Giant. He is Laufey's son, but he was born smaller than most Frost Giants and was abandoned.
Loki often hid a degree of jealousy that Thor was to become King, and felt that Odin perhaps favoured Thor over him. As Thor was always the center of attention, Loki found himself longing for a spotlight over the years, which manifested itself in extreme attention-seeking behaviour.
This interrupted Thor's coronation and was part of Loki's overall plan. He later revealed that he did this simply to mess with his brother Thor on what should have been his big day on Asgard.
When Sylvie kicked Loki through the Time Door he went to the same TVA's own past. That's why Mobius and B-15 didn't recognize him at the end of season one. That's also why Loki saw those massive statues. Earlier in the TVA's history He Who Remains did not hide his identity behind robot Time-Keepers.
But how would the TVA defeat Thanos? Easily. For one, they have time sticks that can erase any living beings. The fight would end rather quickly, as Thanos would be fairly easy to track down.
But the TVA was not powerful enough to overpower. Odin's magic and cancel Odin's magic from Loki. Which proves how powerful is Odin. TVA can stop Infinity Stone's power, but not Odin's power.
Now Odin did tell Thor he was stronger then him (Odin) which some interpret as Odin meaning Thor is stronger than Odin cause Thor now has his fathers power plus his own. But we have to remember two things. Odin himself said Mjølnir only channeled Thor's power, Thor just needed to learn to use it naturally.
He favors Thor because Thor is his son. Loki is typically referred to as more of a blood-brother based on a nebulous oath that is referenced a lot in the myths, but we don't really know the full terms of the oath.
Loki soon took the Casket for himself; once he gained the throne of Asgard, he used the power of the Casket to freeze Heimdall, who was opposing him as a ruler.
Loki set up Laufey—his biological father—with an offer to kill Odin, using this as a justification to destroy Jotunheim in the hope of winning Odin's approval for the throne. After Loki betrayed Laufey, Thor stopped Loki's plan to usurp the throne and defeated him during the Duel at the Rainbow Bridge, ending the war.
Although this ice is tougher than normal Earthly ice and can damage Asgardians, it can be shattered by Asgardian metals. Frost Giants are considered to be brutish and unruly and their home realm is considered a barren wasteland by more advanced civilizations in the Nine Realms, like Asgard.
