The Basket was an ancient artifact of immense power according to Paarthurnax. It was used by S'oggy Balls in episode 33 of season 5 (Who's Your Shadow Daddy?). The basket had the ability to destroy gargoyles, open doors, and protect S'oggy from attacks. It also caused the ground to shake when dropped. S'oggy became emotionally attached to it as he traveled through the dungeon. The voice in S'oggy's head on the other hand was quite skeptical that this basket had any power and became jealous that S'oggy liked it more than him.
The basket was accused of being a slut for assisting other adventurers through the dungeon prior to the fated meeting with S'oggy.