The two combatants walked up to either side of the arena.
"In this corner, she was the last water-bender of the southern water tribe, teacher to two separate Avatars and one of the first animated characters I've ever wanted to fuck, Katara!" Katara stepped into the arena, waving politely to the crowd.
"And in this corner, she's still crazy, her 'best friend' and totally not (definitely) girlfriend turned out to be a secret agent with a fake name, she'll get to earth one day, Lyra Heartstrings!" Lyra trotted out onto the arena.
"Alright ladies, just a refresher on the new rules: the name of the game is making your opponent cum, preferably hard, by any means necessary, that still hasn't changed. Weapons may be used, same goes for special abilities. Full on combat is also allowed in order to make the opponent submit, Just try not to kill anyone, and if it must come down to it, if your opponent tags out, you let them up. Now alternate forms are also allowed to be used, basically any version of the character that exists may be used. The winner advances to the next round, the loser is disqualified, and the loser spends a full week as the winner's sex slave."
The two girls nodded, Katara giving a polite bow to Lyra, who just started at Katara and licked her lips, making Katara shiver slightly. "If the combatants are set," There was a pause, during which Katara's hands moved slowly to draw the water out of their holding sacks and Lyra just stared, not seeming to notice the water tendrils at all, "Begin!"
Lyra rushed Katara, who held her back with her water tendrils. Lyra could use magic to break the tendrils apart, but they just reformed again just as easily. Katara had watched Lyra's other battles, and knew that it would be over if the green unicorn got her hooves on her body. Her lifted Lyra into the air with her water tendrils, working several of them into her pussy, then her ass as well. Lyra writhed, but didn't seem to be getting off very fast. if she didn't, there was a chance that Lyra could break free.
Katara, realizing that Lyra's whole kink was humans and human costumes, undressed and began to finger herself gently while more tendrils worked their way inside her mouth and throat. Lyra gagged, but the sight of the sexy human using her sexy human fingers to rub her sexy human pussy was too good to look away, and she gradually began to give in to the water tendrils that fucked her savagely, making her scream out in pleasure after a few minutes.
"And Lyra has reached climax! Katara is the victor!"
Katara lowered Lyra to the ground. The unicorn didn't seem upset at losing, and even seemed excited at being the sexy human's sex toy.
"She's basically just the human version of Temmie from Undertale huh? Anyway, next up is Arelie vs Luna! Will being a character from Dragon Ball be enough for her to overcome an alicorn? Or will the magic of the night be too much for her to outrun? Find out in the next round of Yuri Tournament!"