What you need is called Morph Target Animation . Blender implements it, but the function is called Shape Keys.
You can see an example of morphing in NeHe Productions .
This process works by creating a basic vector of points, such as a face and a set of change vectors, that contain differences with different morph targets. A possible purpose of morphing is to smile, and it will contain offset values added to the original face, leading to a smiling face.
You can make linear combinations of morph targets, and you can even create caricatures by exaggerating factors (original + 2 * smile).
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