Well its hard to say due to the nature of Prometheus and its part Ambigious clues and part thrown some of the parts of the puzzle in the bin method...
And also if the comics are to lend some clues as to the way the Engineers, and Goo are connected and how the Goo can Evolve..
This then leaves a very tricky subject to cover....
ORIGINALLY...
My ideas that i got from the Clues was that LV 223 had some prior purpose connected to the seeding of life on Earth and watching over that creation from a outpost...
Something happened and the biggest Question to that is the Xeno and where it comes into the equation...
1) Something found/came across that ran lose and infected the experiments.
2) Something found/came across that they attempted experiments on.
3) Something created by the Engineers or Elders on Paradise.
And then also how come the Xeno has a connection to the Bio Tech we see in the Engineers Technology and architecture.
My theory was that the Engineers or the faction on LV 223 used LV 223 as a testing station and incubation for new life forms they introduce to Earth, they come and collect some samples and then futher upgrade them and the desired results they then re-seed back on Earth.
Earth is a Garden... LV 223 is like a Green House/Nursery.
Somehow the Engineers either came across or created something either on purpose or my accident that produced something related to the Xeno or even the first Deacons...
Maybe one of them got infected and the result produced a Organism, that had many traits our Engineers saw as very useful, maybe they lost the ability to mate and re-produce? Maybe the Engineers cant and its their creators who can or could, and these Clone Engineers are used as Pawns to seed life in theirs and the Elders Image..
But then on of the Engineers or a few get infected by something related to the Xeno, and produces a Chest Buster... the Engineers then are able to give Birth to a new life.. a some what crude way of reproduction..
The Engineers or a faction then either saw the DNA of said Organism, as having useful traits to harvest... or indeed they saw the resulting Organism that Chest Busted from their brothers as a more Advanced Organism than themselves.
And they saw it then as a more natural Evolutionary Step.. and they then tried to re-weaponize it to then Upgrade Mankind with the same DNA for some reason.
Thats my idea... but again with the Comics, i am not sure it lends much weight now.