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Volume-sensitive bypass? Does such a thing exist?

Just something I was thinking of- how possible is it to make an effects loop that cuts in only when the volume raises above a certain level? I haven't heard of such a thing before, but I have something in mind for it-

When turned on, the input is split into three buffered unity gain signals.

One is left as a clean signal.

The other two signals work together, one being sent through a send/receive loop, the other used as an envelope filter that controls the send/receive.

The clean and loop are blended together for an output.

So a lower signal would mean a small envelope for the send/receive, but when you dig in and give a larger input signal, the envelope opens up and the clean mixes stronger with the loop.

I would expect that this means that you get more dynamic variation since you'll be adding two signals together at higher volumes.

Do you think this will work? Any suggestions, such as ICs I can look at? Gonna try building this when I finally find time.
 
The Toadworks Enveloope does exactly what you are describing.

Also, the Molten Voltage Toggle has two separate loops, and will switch back and forth between them based on crossing some volume threshold. although that is a triggered switching, not truly envelope following.