Use it to drop the tavern’s chandelier down. Head into the back of the tavern and look for a pulley on the left. When you step inside, ghostly pirates will appear. Look to the right of this cage and you’ll see a tavern. Once inside, listen for the Cursed Captain and follow their voice - they’re hanging in a cage.
This opens up the gate into the actual town. After landing in the town, follow the pathway forward and light the brazier up the stairs on the right. The first thing you’re going to need to do is free the Cursed Captain in this town. Where to Find Captain Bones' Secret Recipe
The town glows green all over, features a ton of shipwrecks, and a massive lighthouse. Head to IGN’s A Pirate’s Life walkthrough to get you there, but you’ll know you’ve reached the right place if you’ve slid down a waterslide-like waterway. You’ll need to make your way through this Tall Tale until you reach the main pirate village or town. Once there, interact with the first A Pirate’s Life Tall Tale titled “A Pirate’s Life.” You can do this right from the main menu or by finding The Castaway at any outpost in the game. To reach the big Monkey Island reference in Sea of Thieves, you must first launch into the game’s A Pirate’s Life Tall Tale campaign.