Felt lichen

Peltigera is a genus of approximately 91 species of foliose lichens in the family Peltigeraceae.[1] Commonly known as the dog lichen, lichens of Peltigera are often terricolous (growing on soil), but can also occur on moss, trees, rocks, and many other substrates in many parts of the world.[2]

Most Peltigera species have the cyanobacterium Nostoc as the dominant phytobiont but some have the chlorophyte Coccomyxa in which case they also have small gall-like growths containing Nostoc. Because of their ability to fix nitrogen from the atmosphere, such lichens are influential in soil composition and generation.-Wikipedia