The paper presents a general approach for designing and animating complex deformable models with implicit surfaces. Implicit surfaces are introduced as an extra layer coating any kind of structure that moves and deforms over time. Offering a compact definition of a smooth surface around an object, they provide an efficient collision detection mechanism. The implicit layer deforms in order to generate exact contact surfaces between colliding bodies. A simple physically based model approximating elastic behavior is then used for computing collision response. The implicit formulation also eases the control of the object's volume with a new method based on local controllers. We present two different applications that illustrate the benefits of these techniques. First, the animation of simple characters made of articulated skeletons coated with implicit flesh exploits the compactness and enhanced control of the model. The second builds on the specific properties of implicit surfaces for modeling soft inelastic substances capable of separation and fusion that maintain a constant volume when animated