Let’s go over the Heroes Materials in detail on this update.
Unlike the Villagers that have specific processing types depending on the material, the heroes are blessed by the magic forge of the gods.
So once the hero slays a monster and claims his reward (the material) it gets stored it in the forge and with a lava splash the item becomes usable.
The heroes craft everything using the unique lava that slides from the forge. This forge allows them to have a unique point of storage for all the items they may need for crafting.

Here is a refresher of what are the materials that can be used by the heroes.
Crystallized Goo
Green Goo
Red Mushroom
Rope
Linen
Cloth
Wings
Carapace
Gunpowder
Flippers
Iron
Magic Essence
Mold

Materials dropped by each mob:







Normal Slime
Crystallized Goo
Poison Slime
Green Goo
Red Spore
Red Mushroom
Statue
Mold
Mummy
Linen
Cloth
Wizard
Magic Essence
Octoboom
Gunpowder
Rope