Hi, thanks for the reply!
I was under the impression that overlay materials (even masked ones) were not supported by nanite at all, was I wrong in that? I think I tried it at some point and it didn’t work, although it was some time ago so maybe things have changed since then. I will need to confer with the team, but that might work if we can accept a dithered look instead of actual translucency.
Just to clarify something, the reason we are using an overlay is that we don’t show this highlight on the whole object. Imagine what is pictured above, with the yellow fading back to the regular mesh based on distance to a specific point, so I’m afraid hiding the pop with material tricks can’t work.
Also since we need this to work for basically any static object in the game, I don’t think we can do it with material parameters or material functions as we’d need to do it in pretty much every material in the game; which I don’t think is feasible for our game.
I will relay these options to my team though and see if we can come up with something. I’ll let you know if we have any questions, thanks again for the suggestions!