Graynor is a realm that seems to be covered by forests and there are some ruins there. The Ancestral Spirit of Nature lives there and she said that Graynor is the ancestral home of Fairies.
The Challenge of Graynor
The Challenge if Graynor is a competition in which the best Fairies of the Magic Dimension take part to obtain a magical power. For this, the Fairies have to find the Creature of the Rainbow Mantle and bring it to the ruins of Graynor. The Rainbow Creature looks like a normal horse and it reveals its powers only to worthy Fairies and gives them a new power.