They survive for a series of reasons.
First, they live high up in trees. While predators do exist, spotting a sloth that is green from being covered in moss/algae in the green tree tops above you is difficult. Second, because they move so slow, they don’t really catch a predators eye like fleeing prey does. A jaguar might walk across a branch a sloth is hanging on and not notice. Their power is just hiding in plain sight. Third, yea being covered in moss and algae and bacteria is kind of un-appetizing. Fourth, sloths have incredibly strong grip, meaning that prying them off the tree branch they are hanging from is difficult.
But sloths do suffer from predation, the most dangerous time for a sloth is actually where they’re on the ground, which they have to do every few weeks to go to the bathroom.
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