Animated Mattes - Guided Edit

Select Guided > Video Adjustments > Animated Mattes. Click Add Media to add a video . Select the appropriate import option and import media. Once imported, the media file gets added to the Project Assets bin. Drag-and-drop the media file to the Video 1 track on the Timeline.

Now, to add animated overlays to this media file, in the right panel, click on the Graphics icon. This will show you the available animated matte overlays. Drag the animated matte overlay you wish to apply and drop it on another video track (eg. Video 2) on the Timeline just above the video clip on the Video 1 track.

Note: You can add multiple overlay clips to get different effects.

A scissor icon appears on the playhead. Click the icon to split the part of the video where overlay is not applied. This helps you retain the remaining portion of the video.

To ensure the video is revealed as the animation plays, add the Track Matte Key effect. Click on the Effects icon on the right panel and drag-and-drop the Track Matte Key effect onto the highlighted video on the Video 1 track of the Timeline.

In the Applied Effects window on the right panel, set Matte to the video track you have added it on (eg. Video 2) and Composite Using to Matte Luma.

For using Animated mattes as transition, you require two video clips. Click Add Media to add the assets you wish to work with.  Select the appropriate import option and import media. Once imported, the media file gets added to the Project Assets bin. 

Drop Clip 2 (outgoing clip) on Track 2. From the Effects panel, select Track Matte Key effect and drag-drop it on the clip. To adjust the settings of this effect, set Matte to Video 3 (In the next step, you will add the Reveal Video Matte on track Video 3) and Composit Using to Matte Luma. Ensure the Reverse checkbox is checked.

Add the Reveal Track Matte clip on video track 3. From the Graphics panel, open the Show All drop-down and select Reveal Video Mattes. Select the matte you want to apply for the transition and drop it on the track Video 3 on the timeline such that the end of the clip aligns with the end of Clip 2. You can use Timestretch to fasten or slow down the transition effect.

Place Clip 1 (incoming clip) on track 1 such that its beginning aligns with the beginning of the Reveal Track Matte clip on Track 3. To make this clip fade in, right clik on the clip > Fade > Fade In Video.