Depending on the render engine, there should be an auto LOD system that uses tessellation to work, so the animation would work normally. i think all big engines have a auto LOD system, or you can manually set the LOD meshes and the engine will do the vertex weighting automatically.
Just use the Skin Wrap modifier. If you've never used it here's how: - apply the Sky Wrap modifier on the mesh without skin - in Parameters, click "Add" and select the skinned mesh - set Falloff to 10 - tick "Weight all Points" - Click "Convert to Skin" - Clean up the new Skin modifier created (it's just a projection it…