How can I avoid stretched decals?

You can reduce the scale of the decal on Z axis to minimize it. Other than that i dont think there is any way to get perfectly wrapping decals for now.

Im spawning circular decals I make when colliding with an object.
The issue is that when spawning this decal near a surface that does not belong to the one the decal was spawned on, the decal is just stretched on this other surface. I know why this happens but I was curious to know if there is a way to fix this

Great this works prefectly! Thanks!