The Elves of Iloriath
Inhabiting the mountains of both east and west Iloriath are the Elves. Though their golden age has long since come to an end thanks to the sundering of the continent, many holds still perservere to this day, and especially on western Iloriath the vast tunnel networks connecting them still facilitate trade across a large area.
Thousands of years ago, the first Elves moved into cave systems exposed to the surface, where they had been maintaining a network of mushroom farms, even back when they were still nomadic peoples. As they made more discoveries in the field of agriculture, they could afford to settle down near- and later inside the caves they used as a source of food.