From Tapestries MUCK
The world of Curuoskar was a pristine wilderness with no native sentient population. It is a terraformed world, left for "younger" races to find, and does show certain signs of carefully management in it's early development, as well as the orbits of it's moons seeming to defy conventional wisdom. Curuoskar is a world at the very edge of the galaxy it rests in, and thus for a long time remained undiscovered.
Curuoskar and indeed it's entire system was terraformed by one of several massive terraforming vessels set forth by the first evolved species of the galaxy. This happened to be the end of this ship's mission, and it still rests at the core of one of the moons which was actually constructed around the giant spacecraft.
The first settlement of the planet for a long time remained undiscovered by the world's latest inhabitants due to the fact the remains of that civilization are nearly a thousand years old, and almost entirely centered on the other continent.
Recent surveys of the world from space however have revealed the existence of that settlement and some exploration has begun.
What is clear at this time is that the first settlement met with some tragic fate. There are signs of a magical war that scarred the land deeply in places, and left dangerously unstable regions.
For this reason few travel there beyond those seeking adventure or knowledge.
The war that destroyed the original settlers who had a continent spanning high-fantasy culture was brought on by a creature that entered the world from the primal nether, the fabric of reality that exists between places.
The creature worked through the living people of the world that it fed on, corrupting and eventually creating war and chaos until it could take form. The battle to destroy while ultimatly successful was a pyrrhic victory that destroyed all sentient life on the planet.
It did, however, create the guardians of the world.
The Guardians were created at the moment of the destruction of the dark creature that was consuming their world. They were formed from the souls of the purest spirits and were a result of the immense amount of energy released by the creature's destruction.
Unfortunately, they had no one to guard.
Portal Nexus Event
It is widely agreed on by scholars now that around 700 B.L. (Before Layleaux) there was some magical event that affected the entire world. Something shook Curuoskar's ties to its plane of origin. It is widely believed that Curusokar actually merged with one of its doubles in another reality, leaving it precariously balanced between the two in a weak spot in the fabric between such places. It is speculated this was caused by some interaction with gods, though no native gods have ever been found for the world itself.
As well as spanning two realities, the fabric between Curusokar and other places had been seriously weakened. This created a place where it was not only trivial to puncture the fabric between Curusokar and other worlds, but occasionally it just happened on its own, creating brief gateways between the world and random other ones.
Hand of the Guardians
The truth in this case is that it was an act by the guardians of the world. They had spent around three hundred years alone, unable to fill their purpose. Thus, they attempted to open portals to other worlds to invite new settlers. However they were still new to such large works, and the resulting collapse of two different Curusokars into one was not intended. Nor was the exceedingly random and sporadic nature of the portals that did result.
Cloud Castle and Tapestries
These are what remains of the attempts to create stable portals to other worlds for the purpose of attracting settlers, and are at this point hollow artifacts that serve little purpose. Other than giving the Muck it's name.
In the years that followed, as the world's position in the Nether and two realities stabilized, various creatures entered the world. Some stayed, some left. Some were sentient, others not. A few settlements were known to be created, ruins of them have been found here and there, but nothing 'stuck' until much later.
About the Portals...
The original intent of the portals still influences their behavior even despite their failings. They seek out worlds with compatible biologies and form bridges such that that life may spread. However because of the dimensional overlap, they are entirely random. They appear in a several thousand mile radius of the Cloud Castle, and vanish with no warning. Sometimes after minutes, sometimes after days or even years. Some of the portals are visible, others are not. Many people reporting just appearing here one day because of this.
The destinations that the portals reach are spread through time, space and dimensions as well, and just as random. Though there seems to be a bizarre but not exclusive preference for various versions of Earth.
The first modern explorers that arrived through the world did so through the few tapestries that continued to function. The world was commonly referred to as "Tapestries", in reference to the Great Hall of Tapestries in the Cloud Castle, which is the first thing most people saw of the world. Its true name was not found until much later when a secret library was found and the language decoded by scholars. Many people still prefer to call the world Tapestries even today.
While many of the explorers went on to follow the other tapestries and roam the world, some few went through the single one that went to the ground below the castle, and just south of the archway they created a town on the edge of Lake Alodaelia right where Otter River empties into it. The town was named Layleaux.
The origin and meaning of the name is a subject of debate to this day. Claims were made that it simply occurred to the people that met originally to plan it out as if by magic. The meaning is entirely unknown, but it's usually pronounced the same as "lay low" in the common tongue, and that meaning suited the town as well as any.
The day the year that the name was selected is year zero on the commonly used calendar. However, the first day of the year does not in fact line up with that day, it was just commonly agreed on as the start of several different culture's years.
Protection of Layleaux
Eventually it became apparent that the town was protected. No one was certain by whom, or what. Those that were destructive, and would harm the society as a whole would... disappear. Even the most powerful creatures, some claiming to be gods, vanished with out a trace. This gave the lawless town what little order it needed to survive.
The people that settled came from so many cultures that they had a hard time agreeing on moral codes and other laws. This coupled with the towns protection from real harm by an outside force eventually lead to the very lose social norms that the world became known for. If you didn't harm the world as a whole, it was OK. Your business was your business.
It is well known that there are spirits that protect Layleaux in particular, and the world in general. It is not known exactly what they are, though they have been sometimes referred to as Wizards or Guardians. As such it is frowned on by the locals for 'mere mortals' to use that title. Thus the various people who practice magic in the world tend to use names like 'mages', or 'sorcerers'.
(The OOC Wizard body of the Muck are responsible for Roleplaying these Guardian spirits where required. They can not be summoned at will. This is also often used to explain the OOC role of the Wizards protecting the Muck, as in the disappearance of a toaded player being described as actions taken by the spirits. Roleplaying a one of these spirit is a policy violation. They used to be exclusively referred to as Wizards but with growing emphasis on RP there is a desire to further separate the administration of the Muck and the IC roles.)
Years of trade
The town grew over the next fifteen years as travelers used it as a way-station between worlds to rest, relax, hide, trade in a taxless lawless place close to the portals they used. The settlement spread out over the valley around the town, with little clans seeking refuge from all over the universe staking out claims here and there. Some went deep into the wilderness and have never been heard of since.
Failure of the tapestries
Tapestries had failed before this time as the worlds they were connected to suffered unfortunate fates, but at about 20 A.L. (After Layleaux) all the tapestries started to lose their power. By 22 A.L. the only one functional was the one that connected the ground to the castle. While there is a great deal of speculation as to why this happened, no one is certain for a fact what caused it.
Left to their own devices, the locals figured out how to travel on their own. This was done through both technology and magic, and there is a great deal of speculation as to if the two are simply facets of the same thing, though the two schools of thought rarely are willing to work together long enough to ever come to a real conclusion on that subject.
It turned out it was trivial to bridge the gap between worlds from Curuoskar through the use of magic by any sufficiently powerful mage. Many portals were opened. None yet have the success that the the creators of the tapestries themselves had, and such portals tend to be temporary at best. Even more important, it is very difficult to open them from the other side, if not impossible at places.
Separately some of those of a technological bent managed to fix the place of the world in their galaxies. A few sub-space beacons were built and the location of the world given away in some circles, bringing the first space travel. However, its distance from settled worlds in both galaxies that it overlaps tend to keep that traffic down to just a few far-reaching explorers, and in both its existence is considered a myth more than a fact.
Some highly advanced technology has also been able to reproduce the effects of the mage's portals.
Again the hub of inter-dimensional trade, the world is again doing well. It is fairly 'rich', with most of the population either funded by such trade, or by providing services to those traders. Still a lawless backwater at best, a lot of behaviors that are frowned on in many worlds are considered common place here. From simple things like public nudity and sex, to darker things like slavery.
There is a growing local-born population, but this really has not changed much in the way of the towns mishmash of culture.