Lava stone Island Event
The event basically says that [Villager Name] saw a burning rock fall from the heavens and it's changing color. If they cool it they could use it for something." Your options are essentially to throw water on it or leave it alone. Throwing water on it will snag you lava stones. Not much in the way of getting around the cash grab that lava stones clearly are, but at least it's something, I suppose.