* Benefits for the Algae: The algae living on the sloth's fur have access to a stable, moist environment with plenty of sunlight. This allows them to thrive and photosynthesize.
* Benefits for the Sloth: The algae help camouflage the sloth, making it harder for predators to spot them. They also provide a source of food for the sloth, which can sometimes lick the algae off their fur.
Mutualism is a relationship where both organisms involved benefit. In this case, the algae gain a place to live and the sloth gets camouflage and a potential food source. It's a win-win!