|Lightweight Body Armor|
The Blacksmith sells "A lightweight body armour" for 15,000 candies at some point.
It reduces the damage you take by 15%.
Later, in the Castle Entrance quest, you'll find Knight's Body Armor that reduces the damage you take by 30%. It can be enchanted to become an Enchanted Knight Body Armor, which reduces the damage by 80%, but makes you give only half damage to foes.