Varric Tethras

"I know everyone in this city. Well, everyone worth knowing."

Varric is a dwarf who has encountered Hawke in Dragon Age II. He narrates part of the story, such as how Hawke escaped from Lothering, while being interrogated by Cassandra, who is trying to find out how the world came to the brink of war.

Background
His family was part of the merchant caste before they left for the surface and Varric was born in Kirkwall. He is a merchant prince among the surface dwarves.

Varric comes from House Tethras and is a rogue. He is the youngest son of the Tethras family while his older brother is the head and runs the family business. On the outside, he is seen as the idle younger brother who spends his time in taverns telling wild stories while people buy him drinks. His real job is to maintain a "spy network" with contacts to deal with various troubles that come along with being in a family that is part of the Dwarven Merchant Guild.

Signature weapon
Varric has a signature crossbow named Bianca. Bianca has a carved wood stock and brass embellishments, as well as a retractable bayonet that slides out of a slot in the front. As such, Varric is the only companion who cannot equip different weapons. If Hawke lets Varric keep the Lyrium Shard during the later's companion quest Haunted, Varric will use the shard to upgrade Bianca with three more rune slots. On the other hand giving the shard to Sandal Varric will not only feel a little dizzy showing that he can not master the shard in reality, the boy will turn the shard into a Primeval Lyrium Rune increasing the attack speed.

Armor
In Dragon Age II, You cannot change what armor your Companions wear, but you can upgrade them. Varric's armor may be upgraded by using the gift mechanics in Dragon Age 2. You will find companion armor upgrades that can be purchased at shops in the tab designated by the Gem Icon. Varric's armor has four slots available for upgrades. These upgrades may be purchased or found at various locations in the the game. Upgrading a companion's armor once unlocks the "A Friend In Need" achievement and fully upgrading a companion's armor unlocks the "I Got Your Back" achievement.

Varric's armor upgrades can be found in the following locations:
 * Act 1: Inscribed Leather Harness (Apparel Shop, Lowtown)
 * Act 2: Coat Lining with Concealed Pockets (Shady Merchandise, Docks) (+77 Attack)
 * Act 2: Silverite-Reinforced Buckles (Personal quest Family Matter)
 * Act 3: Drakeskin Leg Straps (Import bonus quest Finding Nathaniel)

Fate
At the end of the game, Varric left the Champion and remained in Kirkwall. Cassandra, a Seeker from the Chantry, comes and interrogates him on the Chantry's behalf, believing that Hawke is the only hope of stopping a potential war between mages and templars. He told her the whole story regarding the Champion, though he exaggerated on some details.

Quotes

 * "I've had gentler invitations". (After some Templars bring him to be questioned by Cassandra)
 * "So, you want to know about the champion, what makes you think I know the truth?" (To Cassandra)
 * "Let me guess - your precious Chantry is in ruins and put the entire world on the brink of war, and you need the one person who can help you put it back together". (After Cassandra talks back from his previous statement)
 * "I know everyone in this city. Well, everyone worth knowing". (To Hawke)
 * "There's a lesson to be learned here: messing with us is suicidal." (After a fight)
 * "Remind me never to get on our bad side. Seems to be... unhealthy." (After a fight)
 * "We dwarves are attracted to shiny object. Kind of like Magpies, just with business sense". (To Anders)
 * "There's a recipe to a good hero, Hawke, it's like alchemy. Take one part down to earth, one part selfless nobility, two parts crazy fool, and season liberally with wild falsehoods. Let that percolate through a good audience for a while, and when you're done, you've got your hero". (To Hawke)
 * "Opinions are like testicles. You kick them hard enough, it doesn't matter how many you've got". (To Fenris)

Trivia

 * Varric's excessive chest hair has become something of a running joke with devs and fans on the BioWare social forum. It is also something of a running gag in-game.
 * If Varric is a rival, he gets more accurate (as a rival, he wants to prove he is better - more accurate); if he is more of a friend, he gives a party - based bonus.
 * Varric's home base will be in the inn known as The Hanged Man.
 * Varric is one of three characters, Isabela and Flemeth being the other two, known to respond well to sarcastic dialogue options.
 * Varric is always calling companions by nicknames, calling Merrill "Daisy", Isabela "Rivaini", Bethany "Sunshine", Fenris "Broody", Carver "Junior", Anders "Blondie", and Sebastian "Choir-Boy". He never comes up with one for Aveline, however - a fact she comments on if they are both in the party together.
 * Though he is not a romance option, he can be flirted with by both female and male Hawkes.
 * Due to Varric's role in the game's storyline, he is the only companion who cannot have crisis points and leave the group.
 * Inter-party banter reveals that Varric uses his spy network to help out the other party members. Prime example is him asking Merrill to not take shortcuts through Lowtown's back alleys anymore. When Merrill says that nothing ever happens, Varric responds with "I know, and that "nothing" is costing me a fortune.".
 * Though not officially confirmed by BioWare, it is clear the necklace Varric proudly wears is actually a cock ring.