that pretty much what I goit from it. Two worlds 2 does that. you can break down weapons then use it to enchance another weapon that uses the same mats. This also creates a socket to add a enchancement stone.
they also make a joke about it in game on how you put the stone into the weapon. The orc saus "i don't know how to explain it easier then "put stone in hole" " well not an exact qoute. But what i read from google and what pie translated seems to sound like what I wrote.