Transmutating equipment gives you additional stats by turning your equipment into charms. Once you transutate a piece od equipment, it can not be reversed back into equipment. These charms then can be viewed in your "showcase" on your profile page just above your equipment.

Make sure to enchant your equipment as usual with Aqua & Inferno as the higher the stats of your equipment, the higher the stats of the Charm once the equipment has been transmutated.

You can view the how to video (for ios only atm).

Your enchanted equipment are now charms that can be found in your profile's showcase.