In this fanfiction, Lulu is likely a character who has the task of raising Naruto. She could be from a different realm or have a very different background from the Naruto universe. Maybe she's a sorceress or a wise woman with her own secrets and powers that she imparts to Naruto as he grows up.
Obviously, Naruto would be one of the main characters. And then there would be the elves who raise him. They could be original elf characters created specifically for this fanfiction or could be based on existing elf concepts from other works.
Maybe a new, original god - like character created specifically for the fanfiction. This character could have its own set of powers and motives. It could be a being from a different dimension that has an interest in Naruto for some reason. For example, it might see Naruto as a key to balance the forces in the Naruto world or something more complex like that.
One possible antagonist could be Orochimaru. He might see Erza as an interesting specimen to experiment on, due to her unique magic abilities. Another could be some of the dark guilds from Erza's world that cross over into Naruto's world and try to cause chaos.
Obviously Naruto himself is a common character. Then there's usually Kakashi. He might play an even more important role in Naruto's magically - influenced upbringing, perhaps as a mentor who has to adapt to Naruto's new abilities. Sakura could also be a prominent character, and her relationship with Naruto might change due to his different upbringing. She could be more in awe of him or even a bit jealous of his newfound powers.
Obviously, Naruto is one of the main characters. And then there would be the cats that raise him. They could be a group of cats with different personalities, like a wise old cat that imparts wisdom to Naruto, and a young, energetic cat that keeps Naruto active and playful.
Maybe the gods are some of the tailed beasts in a more divine form. Since they are powerful entities, they could raise Naruto, teaching him how to better control the power of the Nine - Tails within him and also how to communicate with other tailed beasts on a more spiritual level.
There could be some ancient, forgotten race of creatures. They might have been around since the time of the Sage of Six Paths. If they raised Naruto, they would pass on their long - forgotten knowledge and powers to him. This could include unique forms of chakra control or the ability to use kekkei genkai that no one else in the ninja world has seen.
Hermione could be one of his friends. She's always interested in learning new things, and Naruto's unique abilities and knowledge from the ninja world would fascinate her. They could study magic and ninja techniques together.
In this fanfiction, there might be a Kiri - native ninja who discovers Naruto when he's just a child and takes him in. This character would be an important one, as they would be the one to introduce Naruto to the ways of Kiri. Also, there could be a group of anti - Naruto shinobi in Kiri who see him as a threat to the village's traditions and try to drive him out. They would be antagonists in the story.