Someone made 3D Mario in Dreams and it's fucking amazing

I know fuck all about Dreams. How are the visuals done? Can you import meshes or do you model in the app? Same for sound effects and textures?
Assuming it hasn't changed much since launch, I'm pretty sure you have to model everything within the game itself, using the PS4 or Move controllers.
 
Just watched the video and this is absolutely insane. I want to give this a try later. (Though that means I'll have to reinstall Dreams…)
 
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