In Chinese folklore, the three-legged toad (or Chan Chu) is tied to a Taoist tale. A greedy toad demon once caused poverty by hoarding wealth. The immortal Liu Hai (or Liu Haichan) defeated it, cutting off one leg to weaken its power. The crippled toad repented and began spitting gold and silver coins to aid the poor. It became a symbol of prosperity, often depicted with a coin in its mouth. Placed facing inward, it’s believed to attract wealth, while outward-facing risks losing fortune. The story reflects themes of redemption and the transformative power of mercy.