In this project we aim to reveal the genetic background that sustains fungal alternative lifestyles according to surrounding environment. We will compare the genomic structure of two closely related species in Stictidaceae, Stictis radiata and Schizoxylon albescens. The former is a saprotophic fungus found on dead branches whereas the latter is so called “optional lichen”. Schizoxylon albescens can either live as a lichen, forming symbiotic association with algae when growing on the bark of Populus tremula or live as a saprotroph when growing on dead branches of Populus and Salix. In the project, we sequence the whole genomes of the two fungi by PacBio sequencing. By comparing the genomes of genuinely saprotrophic S. radiata and optional S. albescens we will identify genomic features required in saprotrophic and lichenized lifestyles.