A custom short domain is a personal domain that takes the place of commercial url shorteners' domain in the shortened URL.

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Is there an SEO benefit in shortening domain names by omitting characters?

For example damnler.com vs damnlr.com. What are the differences in terms of SEO? Do search engines treat these differently in any way?
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Is it ok to use a custom short domain for sharing third-party links?

I use a custom short domain which is a subdomain of my main domain, for sharing my website. I would like to know if this is legally ok to use a custom short domain for sharing third-party links, also ...