Lunar Brace adds boosted damage. It's like Bonfire calculated using the opponent's defense. Let's say the opponent is a Red Sword unit with 30 defense, and Eirika has say, 50 attack (no idea how much she actually has). She'll procure moonbow, which reduces the opponent's defense by 30%.
Under Moonbow, the opponent's defense is 30 - (30*.3) = 21. So 21 effective defense. This would have Eirika dealing 29 damage.
Now, with Lunar Brace, she also does an additional 15 damage, putting her at 44 damage total. Frankly, I don't know if it calculates the Lunar Brace damaged based on the opponent's original defense (30), or based on the defense after it's reduced by Moonbow (21). I'd guess that it just uses the original.
So yeah, Lunar Brace's bonus damage stacks with any damage-dealing special. Not sure how it interacts with AOE specials though.
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