Since version 0.5.1 you can create items and make characters equip them. We've built a very flexible system so one item can be equipped in multiple item slots (although it can only be in either one or the other, but not both at the same time).
To equip an item you first need to define which Types will be used as Equipping Slots. For example, you can make a Steel Sword be of
Once you have these, you can use the Action "Equip Item" to equip the Steel Sword to a specific slot, such as the type Right Hand.
When an item is equipped, the On Equip actions will be fired, and when an item is unequipped, the On Unequip actions will be fired.
The On Equip and On Unequip actions are the perfect place to make the effects of equipping/unequipping an item take effect.
For example, if a Steel Sword shows a nice 3D model of a shiny sword on its right hand, the On Equip Actions could look like something like this: