They are pretty common in English language and in the sentence provided the participial adjectives are "gnarled" and "twisted" as they were created from the verbs "to gnarl" and "to twist".
Shylock is a Jew and as such has always been forced to live on the fringes of society. In effect he has an understandable chip on his shoulder. He is not looking for revenge he is just trying to outsmart him.
