A liquid combination of
alcohol and
THC.
Green dragon is made by soaking the cannabis and thereby extracting the active ingredients like THC. Go for something like Everclear - the higher the proof, the better. Water will just soak up things you don't want. If you just let it soak, wait two to three weeks for the full effect. If you want to speed up the process, heat the alcohol and stir. For gods' sakes, don't ignite it. The end result should be light green to emerald.