Davinci resolve 14 vs optimize video files

Hello everyone, I just signed up, and I want to ask a question, I've been there for almost 4 months from premiere pro to davinci resolve study 14 on pc,Windows 10.
I saw that there is the possibility of optimizing files directly with davinci resolve, but I do not understand in what format are converted, to work more smoothly MTS files as I can do?
thank you

help my please

You have to choose which codec you want to use in the project preferences drop down menu.

thank you