EXP & Credit drops as well as Gear Chalice rewards are boosted based on the current Challenge Level. While any Challenge Level is in effect, monsters and Loot nodes may drop Aetherlite, Darkened or Omega Shards - which can be turned into Prisms in Mech City for Ultimate Gear forging - as well as Mods. The frequency of these drops increases as Challenge Level increases. As well, when challenge level is 1 or above, most towns receive an Item Chalice that gives you an item for free, and shops begin stocking mods and selling them for 5000 credits each.