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Fafnir was the son of the dwarf king Hreidmar. He killed his father for the king’s treasure, then ran off and hid so he wouldn’t have to share it with his brother Regin. Because of how he had acquired the treasure, he received no joy from it. After decades of brooding, he eventually turned into a red dragon — save that he had no wings and could not fly, and lacked the ability to cast most spells.
He has one weak spot in his scaley armor: an area over his heart. Unfortunately for the many heroes who have tried to kill Fafnir and recover his treasure, the worm is aware of this weakness. He usually keeps the bald spot turned to the ground, where it is difficult to discover and even more difficult to hit.

Source: Legends & Lore (2nd edition)

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