Ashti

Ashti is a continent in the southern polar region of Eodea.

The only "country", of the same name, is inhabited by elves. They keep goblins as, in their minds, generally, work animals.

Ashti has been isolated from and, in fact, mostly unknown to the rest of the world for ten thousands of years by a feat of collaborative magic. The original motivation for this was in large parts fear for the elvin species over time "diappearing" due to interbreeding with others, tinged with a helping of supremacism. The latter attitude over time rather grew.

It is not known to the writer how or why goblins were left on or came to the continent, but apparently at least some elves thought they would be useful. Originally kept under control mostly with psionics and a few threats, over time they have been selectively bred for, among other things, obedience.

Small numbers of "free" goblins survive, more or less, in the cold and inhospitable Southern mountains, ignored by Ashin.

In regards to the War

There has been nothing approaching an armed conflict in ages, and there is nothing like an organised army. The closest to fighters you'd get are hunters who go after dangerous game for the thrill of it. Apart from excentrics like that, when dealing with dangers from other living beings, the elves mostly rely on psionics - inducing fear and panic and the like - which may well work not, or only in a limited fashion, on beings from other worlds.