Diamond Shores is the zone where you can go into the Ayanad Library, a location get materials for Obsidian Weapons and Obsidian Armor. It also has two housing zones for the Nuian and Haranyan nations.
The Nuian and Haranyan nations also have a fortress where people can visit merchants and turn in packs to help build their fortress.
There are mobs in Diamond Shores as well, which drop coinpurses, shards for Lunagems, and crafting materials for Obsidian Gear.
Diamond Shores also has a peace-war cycle, so players can participate in PvP during war time to get Honor Points.