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Gemstones can be slotted into weapons to provide a boost to a specific base stat and become available for use at level 40. Any gemstones you acquire before that time will not be usable.
A piece of equipment has up to 3 gem slots available. Equipment between 1* and 3* have no gem slots; equipment at 4* have one gem slot; equipment at 5* have two gem slots; equipment at 6* have three gem slots. One benefit of boosting an equipment's grade is to increase the number of gem slots it has available.
There are 6 different types of gemstone, and they can only be equipped to specific types of equipment. Each type of gemstone boosts a specific stat.
Spade
Stat boost: Attack
Equipped on: Weapons
Diamond
Stat boost: Attack
Equipped on: Body and leg armor
Heart
Stat boost: Defense
Equipped on: Head and arm armor
Club
Stat boost: HP
Equipped on: Accessories
Star
Stat boost: Elemental attack
Equipped on: Orbs
Joker gems are unique in that they can only be slotted into the third slot of weapons, accessories, or orbs (they cannot be slotted into any armor.) There are a variety of joker gems and each one boosts a different base stat. For example, square gems boost critical hit rate, while teardrop gems boost defense.
Spade, Diamond, Heart, and Club gemstones have a second stat boost which is indicated by the icon on it. These stat boosts include:
Critical resistance
Evasion
Accuracy
Critical hit rate
Star gemstones have elemental affinity and their second stat boost increases defense against its inferior element (for example a wood star gemstone's second stat increases water defense.)
Gems can be acquired as quest rewards, but are most typically farmed from Chaos Dungeons. Joker gems can be found as drops from certain bosses.
Gemstones can be equipped to any piece of equipment that you currently have equipped. If you want to add gemstones to another piece of equipment, you will have to equip it first.
The first tab shows your current equipment and their gemstones. The second tab will show all the loose gems in your inventory as well as gem upgrade materials, sorted by gemstone type.
To add a gemstone to a piece of equipment, select it, then chose a gem and the slot you want to put it in.
Gemstones can be leveled up to a max level of 5. You can use either gemstone polishing bags or gemstones of the same type. Leveling up a gem will boost its base stat.
To upgrade gemstones, chose the gem from your current equipment or inventory and then any number of base materials. Polishing bags provide much more exp than fodder gems, although there isn't much use otherwise for 1* and 2* gems.
Once a gemstone hits level 5, it can be grade boosted. This will boost its star level by 1 and reset it to level 1 so you can continue to level it up. You can boost gems up to 6*.
To grade boost a gem, choose it from the equipment or inventory tab. There are no materials needed to boost a gem's grade, just a gold cost.
Once a gemstone hits 6* and level 5, it can be super leveled up. This requires another 6* gem of the same type (which can be at level 1.) The 6* maxed gemstone can use the other 6* gem to level it further to a max of level 7.
Once a gemstone has been slotted, if you directly replace it with another gem, the original gem will be destroyed. This means that you want to be careful with slotting gemstones to make sure you're putting in the ones that correspond to the stat boosts you want.
If you want to recover a slotted gemstone, you will need hammers (which can be bought from the shop for a small diamond cost; sometimes they can be acquired as rewards). The higher the level of gem, the more hammers are required to remove it. The gem will be returned to your inventory and can be slotted into a different piece of equipment.