Squid Kid is level 5, around 10% of your game progress. Coming mid way through the game (around 9-10 hours in) Squid Kid jumps out of the deep sea and offers his services to assist players with fishing. After spending time with him, you can make friends and start to build a relationship. This will bring up the ability to ask him for different orders when it comes to taking on quests which can lead to better rewards at higher rates.