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The dragon is located at the bottom of the screen. You can battle the dragons for Coins or G-Cash and get rewards. There are 4 different dragons, each yielding a different reward.


Bone Dragon Rewards: coins, gems, Resources, level 1 jewels, common and uncommon equipment.
Red Dragon Rewards: coins, resources, level 2 jewels, uncommon equipment, and rare equipment.
Ghost Dragon Rewards: coins, resources, level 3 jewels, rare equipment, and epic equipment.
Black Dragon Rewards: coins, resources, level 4 jewels, epic equipment, and legend equipment.