What the Rite of Channeling exactly does is transfer the genes of a Monstie into another to give them new abilities. Once you get over how cute the juvenile form of a Monstie is, it is time to use the Rite of Channeling. Once you've taken your egg back to town, you will use your Kinship Stone to hatch it and place them in the stables.
Monster Hunter Stories 2 Rite Of Channeling Gene (Image credit: iMore)