The Vertex Paint Shader is meant to give a wide range of possibilities. It consists of a Base Material and 4 paintable layers (RGBA). I established the shader and everything else from start to finish.
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In the General Settings section of the Material Instance you can turn on/ off single vertex colors and switch if you wanna paint just a Dirt Overlay or a whole Material.
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The transition at the painted edges is defined by the underlying height map of the Base Material and a gradient to break it up even further. That gradient is also used to create a real-time normal if needed based on a packed mask texture where you can choose its channel to use for the gradient break up.
Paintable damage (left) | paintable second texture set with pre defined damage (right)
Material, Mask and generated Normal is triplanar projected to avoid seams
Semi procedural normal creation at real-time based on a gradient
Paintable Dirt Overlay instead of a whole Material
Low resolution mesh for Vertex Painting -> achieveing detail with height blend and gradient
Breaking up with Height blend and Gradient for extra detail