So I am currently working on outlining a Thorki fic. In this AU, Loki is a prince from Jotunheim, and a special type of Jotun, called a smareikr. Smareikr are born smaller than the average Jotun, and are blessed with the gift of magic.
Eight years ago, a group of ragtag Jotuns broke into Asgard to try and reclaim the Casket of Ancient Winters. They were stopped of course, but Thor was enraged. Even though Odin told him that this was not an act of war, that Jotunheim couldn’t be held responsible for the acts of a bunch of stupid citizens, Thor didn’t care. He went to Jotunheim with Sif and the Warriors three, and ended up starting a war with his stupidity.
Jotunheim attacked Earth in retaliation, and Thor joined the Avengers to stop them. Odin wanted to make peace with the Jotuns, so an agreement had to be struck.
Odin would agree to return the Casket to Laufey. While it had been used as a weapon once, it’s main function had been to control the weather, and food production had been low every since they lost it. Jotunheim would also be allowed to trade among the Nine Realms, while previously they had been cut off. In return, Jotunheim would give up the magical staff they had used to connect to the Tesseract, allowing them to open a portal to Earth. They would agree to be peaceful, and not act in war against Asgard, or any of the Nine Realms. To assure that the agreements made would be honored, Odin proposed (though Frigga gave him the idea) a marriage between their two realms: One of Laufey’s daughters would marry Odin’s son and heir, Thor.
Laufey agreed, but there was just one problem. Jotun’s are a single-gendered species, that appear very male, therefore, Laufey doesn’t have any daughters. Loki, being his only child capable of magic, was told he would marry Thor, as disguise his body so that he appeared to be female. Loki was -not- pleased, but he knew if this treaty was not signed, his people could very well be wiped out. But, he was not on to sit idly by. He would marry Thor, act the part of a ‘woman’, but he was determined to find a way to make Asgard’s monopoly on the Nine Realm’s crumble.
Thor was, at first, outraged. And not just because the idea of wedding a Jotun disgusted and horrified him. In Asgard, homosexuality is taboo, seen as an undesirable trait. A prince is expected to marry, produce heirs. He can’t be one of -them.- Thor was in denial about his feelings toward men, but he knew he was reluctant about married. He had never felt anything for a woman, and thought of his eventual, inevitable marriage, as part of his duty, nothing more. But a -Jotun-? How could he marry on of them? But Odin reminded Thor that he had started this war, and now he must do his duty to help bring back peace. And Thor was nothing, if not dutiful, and loyal to his people.