Diplomatic action
Kobolds, being small and weak on their own, offered to serve the dragons in exchange for protection.
Dragons are not ones to turn away willing servants, and kobolds fit the description. Living in the Lermu Mountains, kobolds had always struggled to share space with the dwarves, gnomes, goblins, and orcs that also lived in the area. With their alliance with the dragons, the kobolds now had some much needed protection from the other races.