Benefits (How this will benefit the server and game as a whole): Gives out more realism and gameplay options, also it's actually fun if you're trying to escape a predator or a xeno and dive into a pile of mud and try to sneak your way out. This is something any normal human would do if he/she is being hunted by some Lizard alien thing or a tall jamaican dude with blades.
Details (Description of how you think this would work, the benefits, etc): Well, this feature would only be possible if you're standing next to mud, for this purpose, the river area would provide a lot of mud since it's dirt mixed with water, so the only possible way to smear in mud would be traveling to that specific area and use some verb, or, just grab a pile of mud and click on yourself, just like the war paint works. This mud however, won't make you invisible or something like that, you must stand still or walk very slowly so it can work, Xenos have still very good senses and if you move too fast or get too close they will see you, Pred's biomask will detect movement also.
Implementation (Optional, if you have an idea how to implement it): Just the same way war paint was implemented, it will look like a fullbody brown paint, AND, if you touch water it will fall off instantly.