Enchanting[]
Enchanting is a process where a Weapon or Armour is imbued with some special attributes, for example a weapon may receive an attack bonus, and a piece of armour may receive a Hit Point bonus. The actual modifiers given to your item is randomly selected from a set range for each item.
Enchantment Chips[]
Enchantment Chips can be earned in two ways. You can either hunt monsters and wait for one to drop amongst the normal loot, or you can trade in other items for them.
When hunting monsters for chips, bear in mind that monsters will only drop chips equal to or less than their own level. For example a level 40 monster can drop a chip of level 40 and below, but wouldn’t drop a level 84 chip!
To exchange for an enchantment chip, you need to visit the Enchantment Chip Exchanger in The City of Auch. Here you can exchange 3 items in return for a chip. Again the level of the chip is determined by the level of the loot you give.
Enchanting an Item[]
To enchant your item you need to have an enchantment chip of the same level or higher as your item. For example, a level 40 weapon needs a level 40+ chip. A level 32 chip would not work on that particular weapon. Due to the higher costs of level 40, 60, and 80 chips for Pioneer's Equipment, it's sometimes cheaper to buy a higher level chip between those levels.
Once you have your chip and your weapon, you can visit the Enchantment Merchant in the City of Auch, and from here it is a simple process of placing the item you want to enchant into the dialogue box, along with the relevant chip. If you place the weapon or armour you want to enchant into the dialogue box first, and the appropriate chip is available in your inventory, the dialogue will automatically select it for you.
When you are ready, click confirm, and your item will be enchanted.
Success[]
If you succeed, and your item becomes enchanted, then it may be imbued with any normal modifier found on standard weapons. You may receive anything from one up to five modifiers randomly. You can re-enchant your item until you find the modifiers you want, but you will need new chips for each successive attempt.
Failure[]
If the enchantment fails, your item will remain as it is. Unlike upgrading an item, nothing will change on your item, but you will lose the enchantment chip you used.
To minimise the risk of failure, you may use 
Enchant Boosters during the enchanting process.
Enchanting Pioneer’s Equipment[]
The special weapons and armor gained by exchanging polishers, known as Pioneer's Equipment, work slightly differently when enchanting. Equipment below level 40 can be enchanted for free, but any equipment level 40 and above needs to be enchanted in the normal way.
However, every piece of Pioneer's Equipment has a set list of Enchantments that will appear with a single application of an Enchantment Chip. Each enchantment on the list will be applied - the only variance will be their strength (i.e. ATK Up +20% to +30%).
Trivia[]
It seems that 
Solvents used to be used for enchanting, though the only known use for them at this time is for crafting jewels.