* Algae Benefit: The algae living on a sloth's fur gain a stable, elevated platform with access to sunlight for photosynthesis. They also gain access to the sloth's waste products, which provide nutrients.
* Sloth Benefit: The algae growing on the sloth's fur can camouflage the sloth, making it harder for predators to spot. Additionally, the algae can provide the sloth with a source of food (although it's not the primary source).
In summary, both the sloth and the algae benefit from their interaction, which is the defining characteristic of a mutualistic relationship.