I want to present the Decal Atlas Generator. This toolset focuses on creating optimized decals for 3d models inside Unreal Engine. In short, it automatically creates a decal atlas and mesh based on provided textures or a custom 2D model. Created decals can be integrated with the mesh (if you need a height map, for example) or hover above the model. With some custom data provided in the vertex color, it can also be used for varying VFX effects. For a more detailed explanation, I recommend watching the showcase video. Provided HDA was created with Indie Edition, so the corresponding Houdini Engine is required.

Showcase Video:





Example usage in the Unreal Editor:


Unreal Project, Source files, Hda, and QuickStart
ElderwoodChallenge.zip [drive.google.com]

I updated the first post and deleted the old ones, as I may consider this the final version.