The monster dao acts the same as the animal dao in the wisdom stat. The dao Lich chose was the Oni dao, which increases proficiency of weapons. Though the target will start to go crazy the more they use the item. Cockatrice dao, which will cause others to go crazy when they see Lich. They will try to dig out their eyes if they have a mental breakdown.
Parasite dao, the plant parasites in the target that will increase with the decrease in sanity of the target. The more parasites in the person, the more they will fade from having their body eaten. With a mental break down, their whole body becomes a swarm of parasites that will die off if they do not reach a target.