The Caves & Cliffs update is the perfect update to add the red dragon so I think it should work like this: The Red dragon lies asleep deep in the caves and spawns deep in an underground nest which is covered in Basalt and bone blocks. The dragon can be woken up if you get too close or attack it, and will try to fight you if you wake it up. But if you place wool and walk on the wool you can get close to the dragon without waking it then you can feed it chorus fruit, the dragon will like you and you can try and tame it then you can ride it if you equip it with a dragon saddle found rarely in End cities. But you need to be careful because if the nest spawns in the deep dark, wardens will try to attack it if they sense the dragon. So if you want to tame it you need to take care of the wardens first which will be a great challenge with a great reward.
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