Transformers

the two transformers are devices integrated into dread eye's phantom and captain cutlass' stormstalker. The one on Dread eye's phantom turns humans into skeletons, and the one on the stormstalker turns skeletons into humans.

And on a sidenote, the person who the skeleton turned into on the stormstalker is the same figure who got turned into a skeleton on dread eye's phantom. So maybe it was going to be a running joke throughout the series that he was going to be transformed back and forth, back and forth...