Drakes
The Drakes were large dragon-like creatures who possessed nigh-limitless power that ruled Elanthia over 100,000 years ago. Their downfall was caused by the Ur-Daemon War. Few, if any, are alive today.
Drakes and the Arkati
The Drakes essentially adopted the Arkati as servants, though often a Drake would choose an Arkati as a student of sorts. In exchange for the service of the Arkati, the Drakes began to allow the lesser races to construct civilizations, which had before been banned by the Drakes who wished to keep civilization to themselves. During the Ur-Daemon War, the Drakes exiled the Arkati to the two moons which now constitute the religious pantheons -- Liabo and Lornon.
The Ur-Daemon War
Approximately 100,000 years ago, chaotic beings known as Ur-Daemon slipped through the veil and began to lay waste to Elanthia. Although the Drakes eventually drove the Ur-Daemon back to their valence, most were killed or driven mad.