The Lazulite Dragon was one of the stolen SandWing treasures. It is currently unknown if it is animus touched or not. Sunny received the Lazulite Dragon from Fluffy in exchange for Holler's safety. It is a blue statue of a dragon with green emerald eyes carved from lapis lazuli (Presumably the gem). It was most likely made by a SandWing, as it was in their treasury and was stolen by the three scavengers (one who we know was Flower) that attacked the SandWing Stronghold and killed Queen Oasis. Tui T. Sutherland hinted that the Lazulite Dragon and the SandWing Scepter might be important later in the story, as we saw, quite clearly, with the Eye of Onyx. Ever since Sunny received this treasure, we do not know what happened to it or where it currently is. One theory is that they sold it and the rest of the treasure to help build Jade Mountain Academy. We also do not know if it was animus touched or not.