Overview:

This is a port of iNeed's spoilage system adjusted to dynamically track the degradation state of weapons and armor in your inventory. Items in the world may also be found in various degradation states throughout your travels. Upon first installation you must remove then add all equipment back into your inventory. You can adjust degradation rates and other options if SkyUI is installed.

Weapons:

Weapons have a chance to degrade upon use. Blocking with a weapon will significantly increase the chance for the weapon to degrade. Each time your weapons degrade by a percentage below 95%, you will deal 10% less physical damage for a few seconds. The more degraded your weapons are, the more likely they are to further degrade.

Armor:

Armor has a chance to degrade upon getting hit. Heavy armor is the most resistant to degradation followed by light armor and then clothing. Each time your armor degrades by a percentage below 95%, you will take 10% more physical damage for a few seconds. The more degraded your armor is, the more likely it is to further degrade. If a hit is blocked with a shield, your armor will be protected from degradation for that hit and instead, your shield may degrade. Power attacks against you will increase the chances of degradation. If a Mage Armor spell is active, clothing degradation chance is reduced by 50%.

Repairs:

All equipment can be repaired by paying a blacksmith. For all repairs, there is a minimum flat cost of 50 gold. For more extensive repairs, gold value and degradation state are also taken into account. You can enable an option to have blacksmiths take X amount of days to repair items and then delivered via courier instead of immediate repairs.

All equipment can also be repaired yourself using an Equipment Repair Kit, which can be bought or created at a Tanning Rack. However, you must have the necessary skills for the armor and weapon types in your inventory in order to repair them (e.g. Archery skill to repair bows). The repair kit has a chance to be consumed on each repair. The lower the gold value and the less degraded your items are, the less likely the repair kit will “break”. A higher character level will also decrease the chance. Items repaired through this method have their chance to become "Perfect" (125%) scale with your Smithing level. Items that degrade in the "Perfect" condition will give you buffs (+10% physical damage or -10% physical damage taken) as opposed to debuffs.

Due to Skyrim's engine limitations, the following are true:

• Only items in your inventory can be tracked. This means that every time an item leaves your inventory, it will "reset".
• Multiple items of the same type in your inventory will share the same degradation state (e.g. all 5 Iron Daggers in your inventory will degrade at the same time).

More info and download at the link: http://www.nexusmods.com/skyrim/mods/54922/?

I just popped a Skygasm!