In the Creation War, Axinite was captured by the Nawirrûs Covenant. He was one of those on-the-fence primordials, not for the complete return of everything back to Chaos. Instead of dispatching of him, Covenant forces entombed him in the moon Ráglauth.
In the God Era, illithid explorers detected strong psychic energy in the area where he was buried. They built a camp in this area, then sent out their slavers to find a workforce. This camp grew to be the city Penumbra. Under this city is the entombed, yet still living, Axinite. For the illithids, Axinite proved to be an unimaginable reservoir for psychic energy. It was so regenerative that it came to be a source for psionic leeching - the draining of psychic energy from one being and using it to restore your own. This meant that they could study and train their psionic powers for much longer periods of time. It is believed to be the reason why the illithid race is so mentally powerful.
Later, Axinite was opened up and crystal forges constructed inside his chest cavity. One of the greatest items to come from these Axinite Forges are the Silver Mirrors. These devices functioned like teleportation devices, allowing the illithids to leave Ráglauth for other moons and worlds.
Similar to how psionic energy was drained from Axinite's body, which he welcomed, the illithids went a step further, stealing a part of his life energy to create the Dromite race. In so doing, Axinite planted his own seed of retribution in the Dromites. He fortified their minds with a hive mentality, making them immune to certain psychic viruses and when working together, able to resist mental control.