The article explains the technical differences between CLAUDE.md and Skill files, when to use each, their loading strategies, file structures, front‑matter fields, dynamic context, security considerations, and how Skills interact with Subagents, Plugins and Agent Teams in Claude Code.
This article explains how progressive disclosure and dynamic context management address the three core bottlenecks of complex LLM agents—context explosion, tool overload, and uncontrolled execution—by structuring context, tools, and SOPs into layered, token‑efficient, and verifiable workflows.
Cursor’s new dynamic context feature lets its coding agents treat long tool outputs as files and selectively load only needed data, reducing total token consumption by 46.9% while improving response quality through techniques like file‑based tool responses, conversation‑history summarization, Agent Skills standards, efficient MCP tool loading, and treating terminal sessions as files.
