DMS to LOD2 to render as a 3D tiles

Hi everyone, I’m still on the learning curve for Cesium. It might be a simple answer, but I have a question about this issue. Is there a way to generate a LOD2 in Cesium using the footprint vector of a house and a detailed DSM as main inputs, even if I have only a DSM that is already clipped with the footprint? I need to render that LOD2 essentially as a 3D tile afterwards.

Thank you community for your thoughts.

This might be better suited for the Cesium ion section, so I moved it here. Cesium ion has a terrain tiler that supports different input formats - maybe can chime in with more specific information here.